Unregulated “Forex” brokerage Power Spot has been blacklisted by the The Commission de Surveillance du Secteur Financier (CSSF). The country’s main financial regulatory suspects them being involved in scam operations.
The brokerage Power Spot claims to be a CFD broker and further purports to be regulated by the authorities in Luxembourg, however, there is a certain caveat in these claims. It operates through the website – power-spot.eu – and gives a supposed address: 2-9 rue Edward Steichen, L-2540 Luxembourg. However, it appears that the website is actually operating as a scam, misleading traders it has anything to do with the relevant authorities in Luxembourg. This is a popular trope with scammers who steal the corporate information of a top-notch firm in order to lend themselves illusory legitimacy. We commend the CSSF for remaining vigilant and exposing such nasty set-ups which villainouslly aim towards the wallets of ill-informed traders.
The CSSF has always advised traders to only do business with legitimate firms that hold the proper license. Traders may always check the regulatory status of a given company by going on the online registry of the Luxembourgian financial watchdog and typing out the name of the company. Another good idea is simply googling the name of the company and reading reviews from ex-clients of the brokerage, as well as from professional Forex bloggers.