Forex Regulation and lack thereof

So far, the FOREX trading in Israel was not subject to any regulations. In European countries, this over-the-counter activity requires a strict and quality regulation. This lack of regulation in some Middle-East countries has allowed unscrupulous companies to encourage the Israeli public investors to inject capital in the FOREX market without any protection or guarantee. This scam has spread all over the world and too many people still get trapped in this bad business. Authorities set out to design a legal framework in 2004 by appointing a special committee. In 2010, a law was voted, establishing the principle of regulation and authorization mechanism was to be specified by the regulator (Israeli Securities Authority). The regulation, which is still being discussed in the Israeli Parliament before the finance committee, should be adopted this year 2016.

The stated objective of this regulation is the protection of investors. Operators will thus have to comply with a number of good practices. Among them, in addition to the financial security and management requirements, we can mention a limitation of the use of leverage, coherent marketing and advertising with the strict interdiction to offer bonuses to entice the customer to register, or an enhanced disclosure requirement.

Most of Israeli scammers have their main office in Cyprus. They do so because in this area, the Market Authorities have no power and cannot intervene. In order to avoid any further problem, don’t choose a broker located in Cyprus, this is a red flag.

In general, there’s an easy way to spot if the broker you’re interested in is a scammer. Ask him the following questions:

• Are there withdrawal fees?
• Is there any limit to withdrawals?
• Are there other fees or commissions than your spread?
• Should I deposit at least 1000 USD?

If the broker answers “yes” to every question quoted just above, he’s certainly a scammer.

Find below the updated list of worldwide fake brokers or scammers in the Forex universe (some of them have already shut down):

– www.4xp.com/ Forex Place Limited
– www.astonforex.com / Marketrade Ltd
– www.bancmarkets.com / Accounting Marketing Ltd
– www.bforex.com / bforex Limited
– www.brokerandco.com / Sisma Capital Limited
– www.cfxmarkets.com / WMC International Ltd
– www.colbertcap.com / Colbert Capital
– www.elyseescapital.com / Capital Elysees
– www.eurobondfx.com / Eurobond Ltd
– www.euromaxfinance.com / Euromax Finance Limited
– www.finanzasforex.com / Evolution Market Group Inc.
– www.finchmarkets.com / Finch Markets
– www.forextrada.com / ForexTrada
– www.forextradition.com / Forex Tradition
– www.fxbtrade.com / AXA Assets LTD
– www.fxcast.com / Surplus Finance SA
– www.fxntrade.com / Genus Group Ltd
– www.gcitrading.com / GCI Financial Limited
– www.haussman-invest.com / Haussman Invest
– www.ibcfx.com / IBC Capital Ltd
– www.ihforex.com / International Investment House
– www.ikkotrader.com / IP International Service
– www.instaforex.com / InstaForex Companies Group
– www.integralbroker.com / IB International Ltd
– www.investcapitalmarkets.com / ICM Worldwine Ltd
– www.itcfx. com / Formula Investment Corporation
– www.itnfx.com / International Traders FX Network
– www.jbc-pro.com / JBC Pro Limited
– www.justrader.com / MT Capital Partners
– www.kd-markets.com / Globstate Assets Holdings Ltd
– www.metatrada.com / Meta Trada
– www.motionforex.com / Motion Forex Ltd
– www.nakitrade.com / Nakitrade
– www.netotrade.com / Neto Trade Global Investment
– www.obroker.com / Landkey Enterprises Inc
– www.privilegetrading.com
– www.sunbirdfx.com / Sunbird Trading Limited
– www.tmarkets.com / T Markets
– www.tradaxa.com / Sisma Capital Limited
– www.tradect.com / Investment House Limited
– www.traderplace.com / Trader Place
– www.tradmaker.com / Trading Technologies Limited
– www.trader369.com / IP International Service – AJ
– www.triomphecapital.com / Triumph Capital
– www.youtradefx.com / Youtrade PTY Capital Market



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