The offshore Forex brokerage MegaTradeFX has been blacklisted by the UK’s Financial Conduct Authority. The financial watchdog claims they have been providing financial services to British traders without a proper license.
We read in the official warning issued by the FCA that the Forex brokerage is suspected of taking part in fraudulent activities and ” is carrying on regulated activities which require authorisation.”
The brokerage is presumably owned and operated by company Vital Resources LTD based in the Marshall Islands. The Marshall Islands is a favorite destination for scammers due to the location of the country and the very liberal laws regarding the registering of new firms. Brokerages may register there without even being physically present. Furthermore, the brokerage practically writes on its forehead that it is unregulated because of the absurdly high leverage it offers. Ever since August of 2018 brokerages that fall under the regulatory oversight of the European countries have to comply with a leverage cap of 1:30.
The FCA always advises interested traders in the UK, and around the world, to always do business only with legitimate and regulated Forex brokerages. Traders may check brokerages by going to the online registry of the agency and ensuring the firm is subject to the strictest regulatory standards.