Malta MFSA Warns of Bogus Broker Called BinaryFx Pro

BinaryFx lists its address as being somewhere in Malta, but the MFSA’s warning suggests that the address is a bogus

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 for forex, cryptocurrencies, 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 Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

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.

Suggested articles

The FBS CopyTrade Team Introduces New ‘Risk-free Investments’ FeatureGo to article >>

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.

 

Got a news tip? Let Us Know