Experts warn against these brokerage platforms amid safety concerns

Investment experts have warned Brits to steer clear of these brokerage platforms, amidst regulatory and safety concerns.

The investment platforms were examined by unbiased experts, to assess their legitimacy and dependability, whilst a finance CEO offers tips on what to look out for when picking a broker.

New advice from brokerage comparison site Investing in the Web highlights the five investment platforms that Brits should avoid, according to industry experts.

Dominion Markets

“Our primary concern lies in its regulatory framework, which appears questionable due to the jurisdiction it operates in. Without a reliable regulator, investors can’t be sure their trades follow industry standards, and their money is completely safe.

“Additionally, we’ve identified issues with the clarity of information regarding certain investment products like CFDs, as well as fee structures and deposit methods, including available currencies.”

Hankotrade

“If you are seeking a safe and regulated broker, you would want to look beyond Hankotrade. Hankotrade presents itself as a low-cost broker offering trading in a broad range of financial products and providing generous leverage to investors with little money. But it is not a safe broker at all, and under no circumstance should you want to trust it with your money.

“Hankotrade is not regulated by any financial market authorities. Because regulatory licenses speak to broker legitimacy and credibility, legit brokers typically seek to become regulated by the top financial authorities to build customer trust. But Hankotrade has not sought such regulatory oversight.”

The Hedgex Fund

“The Hedgex Fund is a forex investment firm operating from India, where it is not regulated. In addition to lacking regulation by the Securities and Exchange Board of India (SEBI), it is also not regulated or authorised by any foreign reputable authority, raising concerns about its legality, transparency, and authenticity.

“Our team has thoroughly investigated all available information and concluded that there are controversial points, particularly related to the lack of online information, a non-functional website, and a significant portion of the information on platforms such as YouTube appearing as clear propaganda. This extends to reviews on Trustpilot.

“Furthermore, the promise of steady and exponential returns poses a risk when dealing with unregulated investment firms, as they may not adhere to promotion guidelines and make unrealistic scenarios.”

HeroFX

“HeroFX is an unregulated broker that operates in a ‘scammy’ manner, lacking even the basic security for investors’ funds and personal data. HeroFX also offers trading in prohibited Contracts for Difference (CFDs,) which can put you in trouble with regulators.

“The broker has been the subject of many customer complaints over issues such as poor customer support and difficulties withdrawing money from the platform.”

Vault Markets

“While it may seem similar to other brokers on the surface, there are significant issues regarding Vault Markets. Major red flags concern the light regulation of the parent company 1st Fintech Capital (Pty) Ltd., and especially the complete lack of regulation of their connected companies in Namibia and Cyprus.

“This makes it almost irrelevant to talk about the platform’s technical pros and cons. We believe that user protection and platform regulation should always be prioritised when making a broker-choosing decision.

“While we can’t say with 100% certainty that Vault Markets is a scam broker (only time will tell), the red flags should be more than enough to discourage most traders from opening an account with them.”

Pedro Baz, CEO of Investing in the Web offers the following advice to potential investors, “Choosing the best broker in Europe for long-term investing depends on your personal goals, preferred assets, and comfort with fees.

“For some, a zero-commission app like Trading 212 or Trade Republic is perfect. Others might prefer the vast range and institutional-level security of Interactive Brokers. If you prioritize generating interest on idle cash, Freedom24 or Trade Republic stand out.

“Remember, investing is a marathon, not a sprint. Prioritise safety, transparency, and a platform that truly supports your long-term goals. The good news is that Europe has never been richer in terms of broker choice, so pick wisely, keep fees low, and let time do the rest.”