Below is the complete blacklist of forex scammers in Malaysia as reported by the Securities Commission (SC) of Malaysia:
| Broker | Website | Remarks by SC |
|---|---|---|
| ABX Trade | www.abxtrade.com | Unlicensed Capital Market Activities |
| Asset Global Network | www.assetglobalnetwork.com | Possible Clone Entity |
| Capitalix | www.capitalix.com | Unlicensed Capital Market Activities |
| CWG Markets | www.cwgmarkets.com | Unlicensed Capital Market Activities |
| CXM Direct | www.cxmdirect.com | Unlicensed Capital Market Activities |
| Easy Forex | www.easyforex.com | Illegal Activities |
| ETX Capital Global | www.etxcapitalglobal.com | Clone entity of ETX Global |
| Hot Forex Trade | www.hotforex-trade.com | Clone entity, Illegal Activities |
| Interactive Malaysia | www.intereactivemalaysia.com | Clone entity, Illegal Activities |
| BFS Markets | www.bfsforex.com | Illegal Activities |
| Cronoscap Markets | www.scronoscap.com | Unlicensed Capital Market Activities |
| Forex Nova | www.forexnova.com | Illegal Activities |
* Please note, this list was initially published by the SC and is not exhaustive.
How to Check if Forex Company is reported as a Scam?
Step 1: Click here and visit this page
Step 2: Enter broker name to search for an entity.
Licensing and Registration Information
The first check mark for you is to verify the licensing and registration information of a broker in Malaysia. Copy the license and registration numbers from the website or social media page of your potential partner and verify it from the regulator’s page.
The Securities Commission (SC) in Malaysia is the financial regulator of forex brokers. You can do thorough research on its dedicated page for licensed and registered persons/entities.
Website Structure
An immediate impact of a legit forex broker comes through its website. Look for that safety mark on the top left corner of the address bar.
Then, analyze the web page structure of the entity under review.
A legit entity will never hesitate to share its legal information like:
- Registration and licensing
- Contact information
- Customer Reviews (beware of fake reviews)
- Available markets and products
- Trading and non-trading costs
No Risk Warnings – UnRealistic Rewards Promises
Another potential red flag of a scam broker is “no risk warnings” for its potential clients. It would never alert you to the risks of losing money and trading losses. In fact, these entities promise unrealistic rewards.
Funds Deposit & Withdrawal Options
Beware of the withdrawal and deposit methods available with a forex broker. Legit ones will provide you with good options like bank transfers, debit/credit cards, and digital wallets.
Scammers will only give you their bank account numbers. Then, they’ll restrict you when you attempt a withdrawal in the name of “terms & conditions”.
Regulatory Role of Bank of Negara (BNM) and Securities Commission (SC) of Malaysia
The Securities Commission (SC) Malaysia is the financial regulator of forex brokers and other online money market agents. Any forex broker operating in Malaysia must obtain a registration and licensing number from SC in Malaysia.
Bank of Negara Malaysia (BNM) is the central banking authority in the country. Its legislative powers cover all types of banking, insurance, money markets, exchanges, and other types of financial institutes.
So, if a forex broker is registered as a financial entity through a bank or a group, it might also be listed with BNM on top of its registration from the SC in Malaysia.
Both these regulators in Malaysia provide useful information on regulatory requirements and publish lists of approved entities as well as alerts/blacklisted entities to protect investors.
What Does Top-tier Regulation Mean for a Forex Broker?
Top-tier regulators impose stricter qualification, documentation, fund segregation, and transparency conditions on forex brokers than other regulatory bodies. It means a top-tier licensed broker will be safer for you.
Some of the top-tier regulators include:
- The Financial Conduct Authority (FCA) in the UK
- The Australian Securities and Investment Commission (ASIC) in Australia
- Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) in the USA
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