KROUFR, a Russian self-regulatory commission for financial markets, said on Tuesday it has included forex broker Trade12 to its black list of entities that could potentially harm investors. The commission has received numerous complaints from customers of the broker, alerting that they were unable to access their accounts and withdraw funds.
Indeed, Trade12 regularly partakes in the KROUFR’s monthly statistics of customer complaints it receives from Russian traders. Earlier in October, the commission said last month Trade12, together with several other … forex and binary options brokers, were on their way to become blacklisted.
Trade12 says it is a brand of Marshall Islands-registered Exo Capital Markets but is owned and operated by UK-based Global Fin Services Ltd., through which processing services are provided. The broker provides no regulation-related information on its website. The broker offers trading in forex, contracts for difference (CFDs) and metals. It collaborates with introducing brokers and affiliate partners and claims to have been providing financial services for more than 10 years.
The broker has also been included in the warning lists of at least two other watchdogs – the Financial Markets Authority (FMA) of New Zealand and Italy’s CONSOB. They have warned Trade12 operated in their geographical jurisdictions.
With the latest addition, KROUFR’s black list has expanded to include 29 entities. Most of them are still operational and target new investors, Trade12 included.
KROUFR, set up in 2006, is a non-profit organization that aims to develop services and regulate the relationship between Russian participants of global financial markets, forex and binary options included. It provides mediation services in case of disputes between its members and their clients. Its members are online brokers TeleTrade, FreshForex, Forex Club, and Vertical Markets, as well as trading platform UTIP.
When engaging with unauthorized and non-regulated brokers, especially blacklisted ones, traders are putting their investments at 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.