Potential Scam: CySEC&FCA Blacklist Unauthorised EuropeFx

Financial frauds happen worldwide, but the forex market is more vulnerable to scammers due to its immense volume of financial transactions. On average, the forex market undergoes a trading volume of around 6.6 trillion US Dollars, making it one of the most potential targets of money stealers. EuropeFX is a scam broker reported for its malicious code of conduct multiple times. This piece attempts to create awareness among investors about it. 

Quick overview

EuropeFX (https://europefx.com/) is the brand name of Maxiflex Ltd. Established in 2012, the company is based in Cyprus. The broker offers trading services across multiple financial markets, including forex, indices, commodities, shares, and ETFs. The company allows clients to open an account for a minimum deposit of Є250and claims to offer competitive spreads. Other offerings include a proprietary trading platform, multiple account types, and educational resources. The broker also claims to provide a funds compensation of up to Є20,000 per client in case of bankruptcy.

Is EuropeFx regulated?

EuropeFX used to have regulations from the Cyprus Securities and Exchange Commission (CySEC) under license number 258/14. However, the company got its licenses suspended in Oct 2021. According to online resources, the company failed to comply with the CySEC rules and regulations, which led the CySEC board of directors to announce the cessation of its regulatory status effective from Oct 15, 2021. Since the company's license got revoked, it hasn't been regulated anywhere in the world.

Clientele feedback

EuropeFX clients hold a mix of opinions about the company. While some clients seem satisfied with the broker, others think it wastes time and money. The majority of clients have reported the company for its intimidating behavior. According to clients, the company's account manager pressurizes customers to execute trades according to their suggestions, ultimately making them lose most of their positions to benefit the company.

At BrokersView, clients have also accused the company of rejecting withdrawal requests for no reason, account closures or restricting clients' access to their accounts, and poor customer support.

Has EuropeFX ever been blacklisted before?

Yes, the company has been found multiple times in non-compliance and violation of regulatory frameworks worldwide.

In Australia, the subsidiary of Maxiflex Ltd (EFX Global Pty Ltd) misrepresented its status as a licensed broker while it was not. The Australian Securities and Investments Commission (ASIC) opened an investigation after receiving 60+ trader complaints, which grew to 80+ in total, and later shut down its operations in Australia.

In 2020, Maxiflex Ltd had a settlement deal with the CySEC after being found guilty of breaching the code of conduct. The company paid a penalty of €370,000 to retrieve its operational status.

In the same year, the UK watchdog FCA also blacklisted the company from providing financial services to UK customers without its approval.

Bottom Line

EuropeFX (Maxiflex Ltd) is a scam broker you should avoid signing up. The company hasn't revoked its operations, and the website is still accessible.