Our research about VelocityTradeFX shows that it has been blacklisted by a financial regulator and that is why we are publishing this warning.
What is VelocityTradeFX about
VelocityTradeFX is is a brokerage company that offers trading with currencies, commodities and indices. The minimum deposit to open a live account is 250 USD.
Official website: https://velocitytradefx.com
Address: 1 Lime St, London EC3M 7HA, United Kingdom and 100 Adelaide St W, Toronto, ON M5H 0E2, Canada.
Contact information: [email protected], +14169139532 and +442045483471.
Is VelocityTradeFX legit?
Based on our research we have to say that VelocityTradeFX is not legit. The reason for this conclusion is that it has been blacklisted by a financial regulator for providing unauthorized investment services.
The warning about VelocityTradeFX
The financial regulator that has warned the public about VelocityTradeFX is BCSC, see the full alert HERE.
The BCSC had this to say about VelocityTradeFX: The broker accepts British Columbia residents as clients, however it is not registered to trade in, or advise in on, securities or derivative in BC.
The regulator urges BC residents to exercise caution when dealing with firms that are not registered to trade or advise in BC.
Why this warning is important
Financial regulation is key to maintaining orderly markets. Every country has at least one independent regulator that oversees financial markets to ensure that customers of investment services are protected.
No regulation is perfect, but it provides at least basic protection to consumers. In the investment world, regulation often ensures that clients’ funds are segregated from the money of the company, that there is transparent pricing of traded assets, that the company is not in conflict of interests, etc.
Simply put, there are rules that investment companies have to follow and regulators make sure that they follow them.
In some countries, deposits with investment companies are even insured. This means that if the company, for example, a broker, goes bankrupt, clients still get their money back from an insurance fund.
For all the reasons mentioned above the risks with regulated companies are far smaller than with the ones that are not regulated. There are many, many more scams among unlicensed and unauthorized investment services.
Is VelocityTradeFX a scam?
VelocityTradeFX being blacklisted by a financial regulator, namely by BCSC, does not necessarily mean that it is a scam. Unless it is explicitly said in the alert.
But it is important to know that every time there is a reason for a company to be placed on a warning list by a financial authority.
There must have been an impulse for the regulator to investigate VelocityTradeFX and conclude that the public must be warned about it. Like complaints from users or suspicion, for example.
Some investment projects just overlook their duties as far as financial and investment laws are concerned, some are outright scams that just avoid regulation.
In this review, we report on the alert that the BCSC published about VelocityTradeFX. So for a conclusion about whether it is a scam or not you can contact directly this financial authority.
In our experience, to stay safe, it is better to avoid all companies and investment services that have been blacklisted by financial regulators.
You can also contact the national financial authority in your country and ask it about VelocityTradeFX to see what they have to say.
In conclusion about VelocityTradeFX
VelocityTradeFX has been the subject of a warning from the BCSC, which is a financial regulator. So there is a problem with it, and that is why you’d better stay away from it.
If you have doubts about VelocityTradeFX, just ask a licensed investment advisor and/or the national financial authority in your country to get a professional opinion.