With the rapid development of internet technology, social media has become ubiquitous in our lives. As a result, financial fraud is becoming increasingly difficult to detect—even for experienced investors and active traders.
The forex market, due to its vast scale and staggering transaction amounts, has become an attractive target. Forex trading scams have the potential to cause significant financial losses, and once you become a victim of fraud, recourse is often limited. Therefore, early detection is the best defense.
Based on publicly available information and our WikiFX expert investigations, in this article, we have compiled a list of the top ten scam/fake forex brokers in Brazil for the reference of our readers. For more information, Visit our website (https://www.WikiFX.com/en) or download the WikiFX APP now.
Unregulated Status and Lack of License
Questionable Bonus Policy and Withdrawal Conditions
Lack of Regulation and Safety
Manipulative Trading Platform and Negative Reviews
more
Easybe Investment
This broker is unregulated and lacks the necessary licenses. The basic information is presented in the following table. Due to the limited availability of public information on this fraudulent broker, our analysis will primarily focus on its official website.
The official website provided by this broker is Easybeee.com. Our technical analysis has detected that this website has one or more scam site neighbors. This typically occurs in scenarios where the website is created on free hosting, utilizes services like Cloudflare, or the owner of the website is involved in creating numerous scam sites.
There are no links to social networks found on the Easybeee.com page. Social networks serve as an excellent means of communication with clients, and this is why all reputable online businesses have links to their social profiles. A broker's website without provided social network information raises suspicions.
| Company Name | Easybe Investment |
| Company website | https://www.easybeee.com/ |
| Phone of the company | +1 7862927610 |
| Customer Service Email Address | info@easybeee.com |
| Company address | Meadowbrook Mall Rd Bridgeport, WV 26330, USA |
| Regulatory Status | No Regulation |
XBTFX
XBTFX is described as the “crème de la crème of offshore providers”, emphasizing its offshore status. However, the broker's reputation is mixed, receiving positive reviews on platforms like TrustPilot but also encountering numerous negative feedback on other websites. WikiFX's in-depth investigation indicates that, despite its commendable performance in terms of trading platforms, tradable instruments, and trading conditions, the lack of effective regulation leads us to classify it as a fraudulent broker.
XBTFX offers multiple trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These platforms have been praised for their advanced features, including automated trading, API integration, and real-time market reports. The broker also provides a diverse range of tradable instruments such as forex, cryptocurrencies, commodities, indices, and stocks to cater to various trading preferences.
However, XBTFX is an unregulated and unlicensed broker headquartered in Saint Vincent and the Grenadines (SVG), a jurisdiction known for its lack of regulatory oversight. The broker's bonus offerings have been criticized for potential issues, with terms linking bonuses to withdrawal processes.
| Company Name | XBTFX LLC |
| Company website | https://xbtfx.io/ |
| Phone of the company | - |
| Customer Service Email Address | support@xbtfx.io |
| Company address | Hodges Bay, P.O. Box 1348, St. John's, Antigua |
| Regulatory Status | No Regulation |
Vlom
Vlom is an unregulated offshore broker in SVG. It primarily targets traders from the United States, Canada, Brazil, Slovenia, and India, operating without legal permits in these jurisdictions, raising suspicions about its legitimacy. Vlom offers its proprietary trading platform, VlomTrader, but traders have accused the platform of manipulation. Continuous reports from traders detail negative experiences, outlining the losses incurred and suspicions of Vlom being involved in a larger criminal network.
On the aspect of trading details, Vlom provides various account types with a relatively high minimum deposit, reaching up to $20,000, thereby increasing the risk of significant losses. The spread for the EUR/USD currency pair offered by Vlom is twice the industry standard, at 3 pips, indicating non-competitive terms.
| Company Name | Vlom |
| Company website | https://vlom.com/ |
| Phone of the company | +1 8887785986 |
| Customer Service Email Address | livesupport@vlom.com |
| Company address | St. Vincent, Ratho Mill, VC0000 Kingstown, Saint Vincent and the Grenadines |
| Regulatory Status | No Regulation |
FXAlta
Despite FXAlta claiming to be licensed by MISA, checking their database yielded no results regarding this broker. Additionally, MISA is a lower-tier offshore regulatory body, which is not as reliable as top-tier regulatory authorities. The lack of verification from a top-tier regulatory body raises concerns about its authenticity. An investigation by Italy's CONSOB resulted in a public warning against this broker, and the disclosure of Moritz Ltd as the owner further adds to the warning signals. FXAlta primarily operates in countries with strict regulations, including Italy, Brazil, France, Argentina, and Canada.
On the trading front, the broker does not disclose any information about spreads. This is a critical aspect, as, apart from commissions, this is how reputable brokers typically earn profits. FXAlta seems unconcerned about this aspect, with their primary goal appearing to be acquiring as many deposits as possible, a characteristic of typical fraudulent practices.
| Company Name | FXAlta |
| Company website | https://www.fxalta.com/ |
| Phone of the company | - |
| Customer Service Email Address | support@fxalta.com |
| Company address | Lot 2(a), Level 4, Wisma Lazenda Jalan Kemajuan, 87000, Labuan, Malasya. |
| Regulatory Status | Suspicious Clone |
ProfitsTrade
Since its registration in the offshore location of the Dominican Federation in 2020, ProfitsTrade has been operating without a license. This broker has been blacklisted by several regulatory bodies, including the FCA, FMA, CONSOB, and FSMA. Traders' comments on WikiFX indicate that ProfitsTrade targets a diverse range of countries, primarily including the United States, Brazil, India, Indonesia, and Australia. After facing significant criticism, ProfitsTrade disappeared from the trading scene, leaving traders in an unstable situation, highlighting the potential deceitful nature of the broker.
Specifically, ProfitsTrade's online trading platform noticeably lacks advanced features such as social trading and improvement tools. Additionally, their trading conditions lack transparency, leaving traders uninformed about crucial aspects such as leverage, spreads, and fees. ProfitsTrade imposes withdrawal limits, restricting withdrawals to $500, a practice we strongly advise against when choosing a broker.
| Company Name | ProfitsTrade Ltd |
| Company website | https://profitstrade.com/en |
| Phone of the company | +442037698824 |
| Customer Service Email Address | support@profitstrade.com |
| Company address | 7 Old street Roseau DOMINICA |
| Regulatory Status | No Regulation |
Capitalix
Capitalix is a broker based in Saint Vincent and the Grenadines. Despite obtaining a license from the FSA (Seychelles), Capitalix lacks any first-tier regulation. We have checked regulatory bodies such as FCA and ASIC, but they have never issued a license to this broker.
On the trading front, Capitalix offers a proprietary web trader for trading, usable on both Android and iOS devices. However, proprietary platforms are generally considered less reliable than mature platforms like MetaTrader. The lack of advanced features such as social or copy trading further limits its appeal. Capitalix provides various trading instruments, including forex, commodities, indices, stocks, and cryptocurrencies. However, potential issues with withdrawals, a common complaint among traders, overshadow the attractiveness of the available assets.
| Company Name | 4Square SY Ltd |
| Company website | https://www.capitalix.com/ |
| Phone of the company | +91 8327121011 |
| Customer Service Email Address | support@capitalix.com |
| Company address | CT House, Office 4B, Providence, Mahe, Seychelles Makariou ΙΙΙ, 256, CHARAKI COURT, Flat D4, 3105, Limassol, Cyprus |
| Regulatory Status | Offshore Regulatory |
Atomic Trade
Atomic Trade claims to operate from the United Kingdom. Since they claim to conduct business in the UK, they should have a license for such services. Especially after the UK's departure from the EU, strict requirements such as FCA licensing or TPR should be expected. However, we could not find any results about this broker through the FCA register. Additionally, both the Financial Consumer Services Commission (FCSC) and the Canadian Securities Administrators (CSA) have issued warnings about this broker.
On the trading front, Atomic Trade fails to disclose relevant information about trading conditions. Moreover, they impose extremely high spreads, starting from 5 pips, and detailed information about fees (whether related to financing or trading) remains concealed. Atomic Trade's minimum deposit requirement is excessively high, with the highest account type reaching $1,000,000. Such high requirements, coupled with promises of higher bonuses and guaranteed profits, are indicative of potential fraudulent activities.
| Company Name | ATOMIC TRADE |
| Company website | https://atomictrade.io/ |
| Phone of the company | +44 2080977477 |
| Customer Service Email Address | SUPPORT@ATOMICTRADE.IO |
| Company address | 1 ROPEMAKER STREET LONDON, EC2Y 9AW |
| Regulatory Status | No Regulation |
FXTrategy
FXTrategy was established in 2021 and is headquartered in Mexico City, Mexico. However, this broker lacks an operating license in that jurisdiction, let alone having any other licenses in the forex industry. They focus on defrauding clients from Latin American countries, including Mexico, Peru, Colombia, Chile, and Brazil.
On the trading front, FXTrategy hides crucial trading parameters on its website, requiring users to open an account to access them. Despite promoting Sirix Station, FXTrategy only provides a basic web interface, misleading users. The actual trading application is the Web Trader, lacking the promised features and not being a dedicated mobile app. When it comes to fund access, FXTrategy is associated with suspicious payment service providers like latamcashier, posing risks to fund security and personal data.
| Company Name | Estrategias Comerciales Pallay |
| Company website | https://www.fxtrategy.com/ |
| Phone of the company | - |
| Customer Service Email Address | - |
| Company address | S.A. de C.V. Florencia 57, Juarez, C.P. 06600 |
| Regulatory Status | No Regulation |
FxNet
FxNet was founded in 2012 and obtained a CySEC license. However, due to regulatory violations, the fxnet.com domain lost approval in 2019. FxNet also has an offshore company to serve international clients — BELFX LIMITED (Belize). Belize is known for its lax regulatory standards, posing potential risks to clients. FxNet's customer support is below industry standards, lacking real-time chat and efficient phone support. Customers must rely on email or contact forms, and the response time for these forms may not be sufficient to address issues promptly, potentially affecting the overall user experience.
| Company Name | Fxnet Ltd |
| Company website | https://www.fxnet.com/eu/en/https://www.fxnet.com/en/ |
| Phone of the company | +971 42 482 303+357 25 108 111 |
| Customer Service Email Address | support@fxnet.comcs@fxnet.com |
| Company address | - |
| Regulatory Status | Suspicious Clone |
XeonFX
XeonFx claims to be registered in the UK, but investigations reveal that it has not obtained regulatory approval from reputable institutions such as the FCA, BaFin, ASIC, or AMF. Instead, there are warnings from trustworthy entities like the FCA. XeonFx has been found to target traders from countries like Brazil, the UK, and France. Given the strict regulations in these regions, the broker attempts to defraud unsuspecting traders.
On the trading front, XeonFx conceals crucial information about trading costs, including spreads, commissions, and fees. This lack of transparency creates an environment susceptible to manipulation, especially considering the broker's false statements about regulations and its provision of high leverage up to 1:500. While XeonFx promotes the MetaTrader 5 (MT5) platform, the download options on its website do not work, raising doubts about the reliability of the broker's technical infrastructure. XeonFx's withdrawal process is nearly opaque, leaving customers unaware of the withdrawal procedures and potential challenges they may face when attempting withdrawals. In terms of customer support, XeonFx provides customer support via email, online contact forms, and live chat, but the working hours lack transparency.
| Company Name | XeonFX PRO. |
| Company website | https://www.xeonfx.com/ |
| Phone of the company | - |
| Customer Service Email Address | support@xeonfx.pro |
| Company address | 78 Hanbury Street Spitalfields London E1 5JP United Kingdom |
| Regulatory Status | No Regulation |
Is Forex Trading Allowed in Brazil?
The Brazilian Securities and Exchange Commission (CVM) is the regulatory body overseeing the financial markets in Brazil, and it maintains a cautious stance on forex trading. While forex trading is not fully regulated in Brazil, it is not illegal either. Traders often access the forex market in Brazil through international brokers regulated by reputable authorities such as the FCA, CySEC, and ASIC. These international brokers typically operate in Brazil under international licenses, ensuring compliance with global standards.
In Brazil, the approach to forex trading involves using the services of brokers regulated by well-known international authorities. This allows traders to participate in the forex market while adhering to the regulations set forth by credible organizations.
What are Forex Scams?
Forex scams come in different forms, but their main goal is always the same: to take money from unsuspecting forex traders. These scams can take on various deceitful tactics, such as promoting products that don't live up to their promises, pretending to be famous forex personalities to collect personal information, or creating fake websites resembling reputable brokers to steal deposits. The unethical practices involved can range widely and, in many cases, cross legal boundaries, all with the aim of cheating traders and investors.
Indicators of Possible Forex Scams: Three Key Warning Signs
Navigating the forex market requires vigilance, as scams can wear various disguises – posing as brokers, educators, money managers, software developers, or even event organizers. While the array of scams can be overwhelming, here are three key indicators to help you identify potential scams in the forex market:
1. Unbalanced ClaimsScammers often make grand promises, guaranteeing trading success and massive profits while downplaying associated risks. Beware of such unbalanced claims, as trustworthy brokers refrain from making profit guarantees, recognizing the inherent uncertainties in trading.
2. Requests for MoneyA red flag is raised when scammers push for immediate monetary transactions, whether in traditional currency or cryptocurrencies like bitcoin. Reliable, regulated brokers adhere to ethical practices and avoid pressuring individuals into deposits, allowing users to make informed decisions.
3. Lifestyle Portrayals or TestimonialsScam artists may portray an exaggerated “trader's lifestyle” with opulent assets, attempting to lure victims with images of luxury. Legitimate brokers focus on providing content related to technical and fundamental analysis, market research, and education, steering clear of flashy depictions of wealth.
Remaining vigilant against these warning signs is crucial to safeguarding yourself from potential forex scams.
Common Forex Scams
To safeguard yourself from potential forex scams, recognizing early warning signs is crucial. Drawing from my extensive 20+ years of experience in covering the forex industry, here's a comprehensive list of prevalent scams and the proactive steps you can take to steer clear of them:
1. Unregulated or Lightly Regulated Forex Brokers
1) These dubious entities often operate offshore with minimal oversight, requiring only a business license and nominal fees.
2) Lack of legitimate regulation can expose traders to questionable or fraudulent practices.
3) Always ensure your forex broker is properly licensed by reputable regulators in well-established jurisdictions.
2. Binary Options: The Gambling Approach
1) Binary options, resembling gambling more than trading, involve “all-or-nothing” bets on the outcome of events like timed price movements.
2) A 2019 ASIC survey revealed an alarming 80% loss rate among binary options traders.
3) ASIC, a Tier-1 regulatory authority, has banned binary options until 2031 to protect traders.
3. Clone Firms: Impersonating Legitimate Brands
1) Scammers adopt the guise of real brands or individuals through spoofed emails, fake websites, and deceitful phone calls.
2) Legitimate firms maintain easy accessibility and provide verifiable headquarters addresses.
4. Scam Fund Managers: The Churning Scheme
1) Fraudulent fund managers engage in excessive trading, known as churning, solely to generate commissions for themselves.
2) Churning results in significant losses for investors, while the manager profits from hefty commissions.
5. Scam Signal Providers: Misleading Profit Claims
1) These providers, often found in online forums, make exaggerated profit claims to lure users into paid subscriptions for trading signals.
2) Distinguish legitimate signal providers by referring to reliable guides and reviews.
6. Scam Copy Trading Providers: Excessive Signals for Commissions
1) Deceptive copy trading providers flood accounts with numerous signals, aiming to churn the account and accrue commissions.
2) Genuine copy trading platforms adhere to a viable trading plan, focusing on sustainable strategies.
7. Social Media Scams and Imposters
1) Exploiting the vast reach of social media, scammers create imposter accounts using the information and photos of high-profile traders.
2) Verify the authenticity of social media accounts, especially if contacted by someone claiming association with a reputable entity.
How to Avoid Scams?
How to effectively avoid Forex Scams？ We need to start with regulation. Pay attention to:
1. Are brokers regulated？
Unregulated brokers are not required to report to regulatory authorities. If an unregulated broker deceives you in any way, whether through “minor glitches” causing system slippage or failure, or if withdrawals of funds go unprocessed – you are at a disadvantage. As unregulated forex brokers operate without supervision or reporting to any regulatory authority, defrauded traders have little recourse beyond posting negative reviews.
2. If regulated, how credible are the regulatory authorities？
There are significant differences between various regulatory authorities. For instance, a license from FSA (Seychelles) has weaker regulatory efficacy compared to first-tier regulatory bodies like FCA and ASIC. And for another example, obtaining approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate in the U.S. is much more complex and costly than being registered with the Financial Sector Conduct Authority (FSCA) in South Africa. Therefore, it is essential to thoroughly investigate whether your chosen broker is rigorously regulated.
To assist investors in discerning brokers, at wikifx.com, we have compiled information on over 50,000 forex brokers and more than 30 regulatory authorities. You can find information on any broker you wish to learn more about.
What are some legitimate brokers in Brazil?
The scam brokers mentioned in this article are just the tip of the iceberg among many unscrupulous brokers. Traders must be vigilant when selecting forex brokers, choosing those regulated by multiple top-tier regulatory authorities. During usage, remain cautious of the seven common cases summarized above to avoid becoming a victim of forex fraud.
Currently, Brazil has two statutory foreign exchange markets: the commercial foreign exchange market and the tourism foreign exchange market. The Central Bank of Brazil regulates foreign exchange transactions. Due to Brazil's strict foreign exchange controls, the exchange of imported currency is conducted through “foreign exchange contracts” signed between importers and commercial banks authorized by the Central Bank of Brazil. Travelers entering the country can carry an unlimited amount of foreign currency in cash, but amounts exceeding 10,000 Brazilian Reais must be declared. Therefore, there are no excellent local brokers supporting forex trading in Brazil, and WikiFX recommends using internationally renowned brokers for forex trading.
Below, WikiFX provides readers with a list of some excellent brokers. For specific information, please visit our official website(wikifx.com).
FXCM: Founded in 1999, FXCM is a leader in online foreign exchange (FX) trading, CFD trading, spread betting and related services. It is committed to providing global traders with access to the world's largest and most liquid markets. Clients can enjoy the advantages of financial mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers FX trading education courses and provides trading tools, FX data and premium resources. FXCM Pro provides wholesale execution and liquidity opportunities to retail brokers, small hedge funds and emerging market banks, while providing primary brokerage services to high and medium frequency funds via FXCM Prime.
FXCM is regulated by 4 top-tier authorities, including UK's Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Financial Sector Conduct Authority of South Africa (FSCA), and the Cyprus Securities and Exchange Commission (CySEC).
FxPro: Founded in 2006, FxPro has emerged as a key player in the online trading arena. The broker's commitment to transparency, innovation, and client satisfaction has propelled it to the forefront of the financial industry. With a focus on providing advanced trading solutions, FxPro caters to the diverse needs of traders worldwide.
FxPro is a well-regulated company with licenses from 5 different regulators and continues to grow, including the UK's FCA, the CySEC of Cyprus, the South Africa's FSCA , the SCB in the Bahamas and the FSCM of Mauritius. FxPro now serves retail traders and institutional clients from over 173 countries through more than 2 Million Trading accounts.
FxPro is a true NDD (no dealing desk) broker offering CFDs in 6 asset classes: Forex, Shares, Spot Indices, Futures, Spot Metals, and Spot Energies.
IG: Founded in 1974, officially known as IG Markets ltd, IG has always been at the forefront of the industry and truly built the concept of financial spread betting that introduced online deals as early as 1998.
Under multiple top-tier regulations, including FCA in the UK, BaFin in Germany, and ASIC in Australia, IG is a large FX and CFD broker with a global presence and powerful trading technology. It exists to give traders access to hundreds of financial markets, allowing them to find possibilities that others cannot. IG has approximately 313,000 customers worldwide and operates in approximately 17,000 markets. And it currently has 17 sales locations on five continents, serving customers around the world.
Do you need to pay tax for forex trading in Brazil?
Yes, profits from forex trading in Brazil are subject to taxation. Individual traders are required to report their income as capital gains and pay a progressive tax rate, which may vary depending on the amount earned. It is crucial to keep accurate records of all trading activities, as Brazilian tax authorities may require documents to verify the income you report. Consult with a tax advisor for specific guidance tailored to your financial situation.
To Wrap up
On WikiFX.com, our evaluations of online forex brokers, along with their offerings and services, are derived from the data we've gathered and the informed insights and professional perspectives of our expert researchers.
We conduct a thorough review of each broker's regulatory compliance, commission rates and charges, minimum deposit needs, leverage availability, performance of the trading platform, and the speed of withdrawal processes. Through our technologically-backed assistance, we strive to ensure you have a solid understanding of these aspects.
We sincerely maintain an updated leaderboard of top brokers and offer extensive forex guides. With a catalog of over 50,000 brokers regulated by 30+ authorities,boosting confidence and simplifies trading experiences for your forex journey.
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