Brokers without a license

Roboforex

In today’s investment world, it is not uncommon to come across companies and firms that do not protect their clients as their primary interest and, on the contrary, risk fraudulent practices. A key indicator of collusive activity is the lack of licensing or regulation by a lower tier authority. If you invest your financial assets in such platforms, you can easily lose your money. To recognize whether a company is legitimate or fraudulent, you need to search the company and check the warnings issued by the CBN. Today, we will focus on Roboforex, a company founded in 2009 and headquartered at 2118 Guava Street, Belama Phase 1, Belize City, Belize.

About Roboforex:

Roboforex is represented in the European market by RoboMarkets, which is available in English. Directly the Roboforex platform offers CFDs (stocks, ETFs, forex, indices, commodities), Securities (US stocks) with high leverage. The Roboforex website is not available in any language other than English, while the European RoboMarkets can be viewed by users in a total of 13 languages. User support is limited at Roboforex, and any objections can only be addressed by calling +593 964 256 286 or through the contact form. In case of Czech modulation, you can contact the European RoboMarkets number: +420 800 088 482.

Roboforex – review of activities:

Roboforex is regulated by the FSC in Belize with license number 000138/7 and regulatory number 000001272. The European arm of the company is registered as an investment company in 29 countries with a CySEC license in Cyprus with license number 191/13. What is important to note, however, is the fact that neither company is authorized by ESMA to provide investment services in Europe and RoboMarkets is not licensed by the CNB, despite offering services to Czech clients. This in itself may be a warning sign for potential customers. Other disadvantages may include the absence of Czech shares or an inactivity fee of USD 5 for every 6 months. The minimum deposit amount stands at CZK 2,000 (equivalent in other currencies) and physical ETFs are only available for “professional clients”.

Conclusion:

Roboforex doesn’t seem to be an outright fraudulent platform according to reviews and ratings, yet there are aspects that don’t exactly shine a good light on the company (e.g. some cringeworthy reviews with odd responses from RoboMarkets employees). However, to ensure the safety of your funds, we rather recommend companies that have a valid license (preferably from the CNB) or those that are regulated by ESMA. For example, the platform company Portu offers a wide range of investment opportunities.

When researching companies further, it is recommended to thoroughly investigate the CNB website to identify risky platforms with suspected fraud and to study ESMA’s regulations or register for European companies.