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Myfxbook advertises forex contest sponsored by the controversial ForexBrokerInc

Sep 15 2014
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Myfxbook, the reputable social trading platform, is running a contest with a controversial and unregulated forex broker, ForexBrokerInc, against which the Malta Financial Service Authority has warned the public.
 
“We’re happy to announce a new trading contest, available for US and Japanese traders only, sponsored by Forex Broker Inc; a total of $5000 in prizes will be given out to the top traders!”
 
That is what we found today on Myfxbook's blog. This is not the first contest held by ForexBrokerInc that Myfxbook advertises. Their insistence to partner with a controversial broker is surprising one may think.
 
ForexBrokerInc is an unregulated broker registered to the best of our knowledge in an offshore zone, namely Belize. The broker is aggressively targeting US and Japan residents by marketing exactly the lack of regulation they enjoy (if you allow that word). US authorities discourage, to put it mildly, unregulated financial firms to offer services to US citizens. That is why many international forex brokers explicitly state that they do not accept clients from US.
 
For example, the respected Japanese company HiroseUK states on its website that “The information on this site is not directed at residents of the United States […].” Another example: “FxPro Financial Services Limited and FxPro UK Limited do not offer Contracts for Difference to residents of certain jurisdictions such as United States of America […].”
 
There is a reason why recognized and regulated brokers do not accept US citizens. It is a bad marketing and it represents a high risk. Myfxbook is making themselves a bad favor by advertising a broker that is doing something that reputable companies avoid.
 
On top of that in April this year the Malta Financial Service Authority has warned the public against four forex brokers. One of them is ForexBrokerInc. You can find the warning here. A quote from it read: “The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the individual or entity with whom the transaction is being made is: (i) licensed or authorised by or otherwise registered with the MFSA; or (ii) licensed or authorised by or otherwise registered with another reputable financial services regulator to provide financial services.”
 
Pretty strong language. It is not unfounded though. Dealing with a broker neglecting rules that everybody else follows is an unjustified risk.
 
What is to wonder is why Myfxbook, a respected by the forex traders community company, is insisting on supporting and popularizing such a broker like ForexBrokerInc.
 
In a rather informative discussion at the Forex factory forums we found a response sent by Myfxbook customer support to a person asking why do they partner with ForexBrokerInc. The answer is that it is a demo contest so there is no risk. About the broker's regulation Myfxbook advises to ask the broker itself. 
 
TAGS: Myfxbook  forexbrokerinc  malta financial service authority  mfsa 

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