Malta MFSA Warns of Bogus Broker Called BinaryFx Pro

The trend of regulatory authorities warning against binary options brokers continues as the financial markets watchdog in Malta today warned of a new brand called BinaryFX. Based on prior reviews, it seems that the people behind BinaryFx Pro offers a Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term for forex, Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, commodities and investments, and claim to have been in operation since 2001.

BinaryFx Pro claims to be “a registered company in the EU, regulated by the Malta Financial Services Authority” and is also alleging to hold license no. IS/70156, which license number appertains to a legitimate, unrelated Maltese licensed firm.

The regulator further states that BinaryFx, which operates two websites, has never been granted the required authorization to offer financial services in or from Malta and is therefore not supervised by the MFSA.

The authority has previously warned many trading firms against falsely advertising unregulated products as being supervised in Malta. The watchdog added that these financial promotions were unlikely to provide consumers with the clarity required by its rules and could leave them unable to understand whether the promoted products or services were beyond its remit.

Now the broker lists its address as being somewhere in Malta, but the MFSA’s warning would suggest that the address is a bogus one.

Otherwise, BinaryFx has all the trappings of a run-of-the-mill, boring scam broker. There is no indication as to who is running anything, no indication as to where the company is really based, and no indication that you will get your money back if you deposit it with the firm. According to previous warnings from other regulators, the brand is operated by CASPOMAT LTD. a private company registered in London, which does not claim to be regulated by the UK FCA.

Elsewhere, the Malta Financial Services Authority (MFSA) also warned locals that the COVID-19 pandemic had become a bonanza for scammers of all stripes. The MFSA added that the new wave of fraudulent activities is exploiting the global concern about the deadly disease to make money and steal information.

While a warning might serve to guide a client away from a scam and towards a reputable broker, sometimes they are only issued long after the fraud has already been committed.