Scam Warning! Be Careful of The Unlicensed Broker Finarix

As forex trading gets popular among traders, many unlicensed brokers who are trying to attract investors by falsely claiming their secure, reliable and top-notch trading conditions with good returns. Moreover, those unregulated brokers usually show on its website that they hold license(s). However, when we checked their trading conditions and regulatory status, we found negative results. That means those brokers are just scammers.

Recently, BrokersView learned that forex broker Finarix is one of the above fraudulent brokers. Besides, we also found that it was warned by Spanish CNMV before.

Operated Without Any License

Viewing on its official website, we found Finarix claims to be founded in 2016 as a provider of brokerage services in online trading. However, the domain of Finarix(https://www.finarix.com/) was actually created in 2019. That is a big scam flag.

Besides, this broker shows that it is owned and operated by Zolarex Ltd, a company registered in the Marshall Islands with registration number 78978. When checking on the Marshall Islands Registry (IRI) with the name and registration number, we found one result. However, the regulatory status is abnormal and the official regulatory status is annulled. More importantly, as a trader, you have to know that IRI does not issue any licenses for forex trading or brokerage nor does it regulate, monitor, supervise or license international companies engaging in such activities. So Finarix is currently not regulated by any financial regulator. That means investors' funds in this broker is unsafe and cannot be protected by any laws. That is also a big red flag. 

Warned by Spanish CNMV

What's interesting, we found that Finarix was marked as an unlicensed firm by Spanish regulator CNMV before. According to the release, CNMV warned that: ZOLAREX LTD(http://www.finarix.com) is not authorised to provide the investment services detailed in Article 140 of the Spanish Securities Markets Act, which include investment advice, nor to provide the auxiliary services detailed in Article 141(a), (b), (d), (f) and (g) of said Act in relation to the financial instruments detailed in Article 2 of said Act, including, for those purposes, foreign currency transactions.

Based on the information above, we can conclude that Finarix is a scam. Therefore, BrokersView suggests investors to stay away from Finarix and keep vigilant when choosing forex brokers. If you are not sure on how to find a licensed broker, you can search on our website to check brokers' details.