The International Financial Services Commission (IFSC) of Belize issued on Tuesday a warning notice that forex broker TradeFxP is falsely and fraudulently claiming to hold a license for trading in securities issued by the IFSC. The regulator referred to the license published on the broker’s website as being “a complete forgery”.
“We confirm that TradeFxP is not licenced by the International Financial Services Commission of Belize or any other competent authority in Belize to engage in any type of trading business,” the IFSC notice read.
TradeFxP says on its website it was incorporated in the UK and does business in several different countries worldwide. Indeed, a company names TradeFxP Ltd. and incorporated in October 2015 is included in the UK’s trade register.
The broker offers Mini, Standard and ECN accounts with minimum deposit requirement $25 to $500. It says it uses a Straight Through Processing (STP) model only, yet acts as a market maker when processing cent accounts.
Belize is known as an offshore destination and is renowned for its milder regulation and licensing requirements and lower incorporation costs.Many forex brokers choose to register in Belize and fall under the supervision of the IFSC since they need to meet fewer and softer criteria and to comply with less strict rules and requirements than if they registered in other countries. The IFSC rather relies on self-regulation by the companies. Nevertheless, a broker license is attractive to traders as it brings them a feeling of confidence and security when choosing a broker.
The regulator noted that investors should take note and be cautious when engaging with financial service providers. Entities that are not licensed and authorized present higher risk.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.