Update on Forex-Metal and SmartTradeFX
Forex-Metal (Panama)
We have displayed a warning in the Forex-Metal listing for many months. It reads as follows:
Serious warning: exercise extreme due diligence with this broker.
Apparently, the fine print in that warning is overlooked by people who are reading our List. So, I will replace the fine print with a big, red warning, similar to the one in the SmartTrade listing.
Edit: The WARNING has been added to the Forex-Metal listing.
As for removing Forex-Metal from our List, I will wait for more comments from the community, before making that decision.
SmartTradeFX (SVG)
I have received a reply from the I.F.S.A. in SVG (St. Vincent and the Grenadines). Here is a copy of my email inquiry to them, and a copy of their reply to me:
• my email sent to I.F.S.A., St. Vincent and the Grenadines, Friday, 10/16/15, 12:55am
Good morning,
I am a private currency trader in the U.S., looking for an offshore broker to handle a portion of my trading funds.
I am trying to gather information about a foreign exchange broker operating under the name SmartTradeFX.
On their website (SmartTradeFX.com), this broker lists their address as:
Suite 305, Griffith Corporate Centre, Beachmont
Kingstown,
Saint Vincent and the Grenadines
They claim to be regulated by the I.F.S.A. Can you confirm this?
It is my understanding that SmartTradeFX was facing financial difficulties, and possible bankruptcy, after the Swiss National Bank debacle in January of this year.
Can you tell me anything about the current status of SmartTradeFX ?
Thank you for your attention to my questions. I look forward to your reply.
Very truly yours,
Clint ********
<[email protected]>
• the reply I received from the SVG-I.F.S.A.
N Hunte <[email protected]>
10:46 AM (7 hours ago)
to Karen, badencok.heidi, me, Financial
Dear Sir,
Please be advised that Smarttrade FX is incorporated in St. Vincent and the Grenadines as an International Business Company.
However, please be further advised that forex and brokerage licences are not offered in SVG. If Smarttrade FX is engaged in forex/brokerage activities, it is not being regulated by the St. Vincent and the Grenadines Financial Services Authority.
The Financial Services Authority (the “Authority”) does not ‘Regulate, Monitor or Supervise’ International Business Companies (IBCs) which engage in FOREX Trading or Brokerage. The extent of supervision of IBCs goes no further than to ensure that IBCs comply with their obligations under the International Business Companies (Amendment and Consolidation) Act.
An IBC incorporated in SVG is authorised to engage in any business activity without additional approval from the FSA, except where its proposed business activity amounts to banking, insurance or mutual fund business, as these activities are licensed activities.
The FSA has taken the position that until such time that appropriate legislation is put in place to address forex activities, there is no prohibition against an IBC carry out that activity. It is however advised that IBCs which do carry on this activity take the necessary steps to ensure that they obtain the required authorization from the jurisdictions wherein they actually conduct the forex activity. For example, both the USA and Canada require all forex companies who solicit business from citizens of those countries to be registered / licensed in the USA or Canada respectively. It is to be noted that IBC incorporated in SVG are prohibited for doing business with residents of SVG.
Please be advised further that an IBC which engages in Forex Trading activities does so at its own risk, as it will not be regulated in this jurisdiction.
We are currently not in a position to verify whether or not Smarttrade FX was facing financial difficulties and possible bankruptcy. However you can communicate with the IBC Registered Agent to address this matter. The Registered Agent details on file is as follows:
Wilfred Services Ltd
Suite 305, Griffith Corporate Centre,
P.O. Box 1510
Beachmont
Kingstown
Saint Vincent and the Grenadines
Tel: 784-456-2970
Fax: 877=474-8132/+44-808-171-1136
Email: <[email protected]>
Web: Wilfred International Services | Just another WordPress site
I trust that this information is of assistance you.
Kind regards
Nerissa Burton-Hunte (Mrs.)
Senior Registry Clerk II
Financial Services Authority
Tel: 784-456-2577
Fax:784-457-2568
Email:[email protected]
I have copied-and-pasted the entire I.F.S.A. reply, because it outlines the regulatory position of the I.F.S.A. regarding all forex brokers operating within their jurisdiction.
This pertains not only to SmartTradeFX, but also to Tallinex and PaxForex.
I think we need to keep in mind that Tallinex and other SVG forex brokers are permitted to operate as they do from SVG because the I.F.S.A. does not currently treat them as financial institutions subject to regulation.
Our mutually-beneficial relationship with Tallinex depends on this hands-off treatment from the I.F.S.A.
If the SVG-I.F.S.A. regulatory stance regarding forex brokers were to change in the future, we — and Tallinex — will have some important decisions to make.
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