2023 Binetrix Status Report – Notices from Regulatory Authorities
Throughout 2023, Binetrix, a brokerage firm, has received multiple warnings from various regulatory bodies. The initial alert was issued by Finland’s FIN-FSA in February, indicating suspicions of fraudulent activities by the company.
Following this, Spain’s CNMV issued a warning on June 5th, 2023, highlighting that Binetrix was offering financial services without the necessary legal authorization. This alert was subsequently echoed in several other European Union countries, including Bulgaria and Slovenia.
Concluding these series of warnings, on June 28th, 2023, Italy’s CONSOB included Binetrix in its list of five blacklisted websites for abusive practices. This particular notice also appeared on the Belgian FSMA’s website, further emphasizing the concerns regarding Binetrix’s operations.
Is Binetrix an Unregulated Scam Broker?
Binetrix appears as a shadowy trading entity lacking essential information about its ownership, raising red flags. The firm’s address in Saint Vincent and the Grenadines, known for being a haven for financial fraud due to its minimal regulatory oversight, further adds to the suspicion. Notably, the Financial Services Authority (FSA) of SVG explicitly states it does not regulate Forex and CFD trading companies, advising such firms to obtain licenses in their operational jurisdictions.
Our investigation into Binetrix’s regulatory compliance spanned across several major financial authorities, including Australia’s ASIC, Germany’s BaFin, and the UK’s FCA. As expected, Binetrix was absent from their registers.
In essence, Binetrix is a trading deceiver, offering financial services in violation of regulations set by key financial watchdogs like ESMA and various local regulators. Victims of this scheme can’t rely on support from the Financial Ombudsman or similar bodies.
Operating as an unregulated offshore entity, Binetrix predominantly preys on novice investors. Despite its claims of merely facilitating connections between brokers and traders, it engages in unauthorized investment services.
Who Are the Victims of the Binetrix Scam?
Based on reported complaints, most victims of the Binetrix scam hail from countries including the UK, Netherlands, Italy, Spain, and Denmark.
Your reports are vital in aiding our efforts to prompt regulatory authorities to issue formal warnings and restrict Binetrix’s fraudulent activities. If you have any experiences or insights regarding this scam, we encourage you to share them to strengthen our case.
Lack of Negative Balance Protection by Binetrix
Binetrix, on its website, advertises the assurance of funds safety and the credibility of its trading platform. Yet, it conspicuously omits offering negative balance protection, a crucial feature provided by legitimate trading firms. This safeguard is designed to prevent investors from losing more money than their initial deposit, thus avoiding debt to the broker. The absence of this protection hints at Binetrix’s intent to extract additional funds from its clients, aligning with its deceptive practices.
Availability of Binetrix Demo Account
Regarding the availability of a Binetrix Demo account, our attempts to create an account were unsuccessful, thus blocking access to any such feature. The absence of any mention of a demo account on their website further fuels our suspicion that it might not exist. A demo account, typically a risk-free way for users to familiarize themselves with a trading platform, seems to be deliberately overlooked by Binetrix. This is not surprising for a firm that appears to be more focused on fraudulent activities than offering legitimate, customer-friendly services.
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