From onboarding clients via decoy offshore branches to lack of regulatory jurisdiction. Here are the conflicting practices that involve affiliates accepting deposit payments to personal accounts to bamboozle the merchant services providers and why such practices slip through the net
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Brokerages with genuine regulatory licenses and substantial low-deposit business in non-regulated regions […]
‘Fringe’ FX brokers claiming to be regulated when they are not, illegally accepting US customers, and displaying false certificates
We take a look at how certain companies in offshore jurisdictions claim to be regulated, when they are not […]
Companies onboarding clients via subverting the CySec licences that they hold in order to onboard clients to offshore regions such as the Marshall Islands, and in some cases, FinanceFeeds has found that they do so via using personal entities as agencies (!) will no longer be able to do so, as European Union officials prepare to cut off the funds and make it impossible. We analyzed this during the course of 2017, and now the law is coming.
Despite CySec instructing all brokers in Cyprus to desist from offering deposit bonuses and ensuring that they stick to a leverage limit of 1:50, some firms at the lower end of the market are not doing so – here is why, and here is how it can be stopped in order to preserve the reputation of the regulatory jurisdiction
Offshore chaos: Massive percentage of Vanuatu’s population runs away permanently. Want stability? Do NOT register there
Vanuatu, like most offshore regions where some unregulated FX firms choose to register their business, is now witnessing the permanent emigration of the vast majority of its population, representing the entire populace of Ambae. We look at the grave consequences of registering and operating from what is probably the world’s most unstable jurisdiction – you effectively face losing your entire brokerage and its funds.
We show full details of how certain retail firms are onboarding customers by taking deposits to personal accounts, which are then transferred by ‘agents’ to the brokerage to circumvent laws about onboarding customers and the risk management systems of merchant services providers
FXTM claims that it can offer 1:1000 leverage on all accounts that are executed via a ‘live market’ ECN. We suspect that this is not the case and that all such orders are being executed internally via a dealing desk, as no liquidity provider or aggregator in the world will allow this. Here are our findings