BAFIN Has Issued Warnings About the Following Brokers

BAFIN has alerted the public about the following brokers. This regulator has found red flags that indicate that these brokers may be fraudulent. This isn’t something to be taken lightly. It’s best to steer clear of any of these brokers and avoid trading with them.

ChargeBax experts stay up to date with alerts from regulators around the world. We add flagged brokers to our lists and produce reviews to inform the public. Check our site regularly for the newest broker reviews to help you do research on brokers before opening an account. 

What Is the BAFIN?

BAFIN or the Federal Financial Supervisory Authority is in charge of ensuring that all financial companies in Germany comply with rules and regulations. It plays a supervisory role and is also active in taking disciplinary action against financial companies that violate the rule. They also serve as a watchdog and warn the public about potentially harmful financial frauds.

Why Did the BAFIN Flag These Brokers?

  • Licensing problems
  • Misleading information
  • Lack of transparency
  • Account issues
  • Customer complaints

Licensing issues are one of the most common reasons brokers get flagged by regulators. They may have no license or may have insufficient licensing. They could be violating regulators by offering certain assets or signing up traders in regions they are not allowed to operate. 

Many of these brokers have made misleading statements to their own clients and to people visiting their social media pages or website. They could be falsely promising returns on trades or could be exaggerating their successes and credentials to attract new customers. 

Brokers should provide full transparency. You need to know names, locations, and full contact information about brokers before opening an account. Many of these brokers don’t let customers know who they really are and have no names or fake names and addresses. 

It’s not uncommon for an unlicensed broker to lock people out of their accounts for trivial reasons, charge huge amounts in transaction fees and ignore withdrawal requests. All of these are red flags and signs that a broker may be fraudulent. 

Brokers end up on BAFIN’s list of flagged brokers because of the proliferation of negative reviews. These aren’t just comments on a generic review site, but they are claims made directly to the regulator and BAFIN has verified them and is dealing with their complaints.

BAFIN Broker List 2022

Is Your Broker on This List? Here’s What to Do

We do not recommend opening an account with any of the brokers we have mentioned in our warnings list. If you do hold an account with this broker, close it right away and ask for a withdrawal of your funds. If the broker will not allow you to retrieve your funds, talk to ChargeBax professionals right away. We will investigate the matter, track down the broker and your funds, and will help you prepare your claim.