The Financial Services Commission of Belize (IFSC) issued on Tuesday a warning notice against forex and contracts for difference (CFDs) broker TradingBanks, in which the regulator says the entity improperly claims it is related to another company, which is registered and regulated in the country. The IFSC has also issued a cease and desist order to the unauthorized entity.
TradingBanks claims on its website it is a brand owned and operated by financial service company ST World Trade. The regulator noted that the company has not been granted authorization to perform trading activities in Belize by any authority in the country and is not related in any kind to other companies regulated or licensed in the country.
The broker says on its website its headquarter office is registered in the British Virgin Islands. It offers forex and CFDs trading services, as well as trading with precious metals.
The cease and desist order aims to stop the illegal activities of the entity and to prohibit it from performing such activities in the future. Usually, failure to comply with such an order is punishable by the courts.
Belize is known as an offshore destination for forex traders, where the regulation is not as strict as in other places and the requirements for acquiring a license are more liberal than in most countries. Many forex brokers choose to register and be regulated in Belize since the provision of a license there requires them to meet fewer and softer criteria and to comply with less strict rules and requirements than if they registered in other countries. Moreover, costs related to incorporation and regulation are significantly lower in Belize and brokers’ required unimpaired capital needs to be as low as $100,000.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.