- Following the Boxed System
- Blacklisted by KNF
- Not Regulated By ASIC or FCA
- Account Suspension for No Reason
MIB700 is a Forex broker that offers Forex Trading Services. This is a b-book broker (aka market maker) which offers CFD, commodities, shares, indices and currencies. Following, we are going to review this broker and see if we can trust it or not.
The Polish Financial Supervision Authority (KNF) issued a warning wasted MIB700 and warned the public against using its services. MIB700 is a Vanuatu based FX and CFD services provider which was active in the country without the person of its Financial Regulatory Body.
MIB700 claims its address is 43 Franklin St, Belfast BT2 UK. The company is administered by Blue Seal Limited. The administration is based in the Republic of Vanuata. MIB 700 wants to hide its background or the team behind it, which is not a healthy sign. This promoted KNF to add MIB700 to its list of unauthorized Investment firms.
Financial Authorities like Financial Conduct Authority or Australiana Securities and Investments Commission doesn’t have MIB 700 in their database. Regulation makes a broker credible, but many brokers choose to operate withing being operating for many reasons.
For example, it decreases their operating costs as getting or maintaining a regulatory license can be costly. The cost of getting an FCA can be millions. These companies base themselves in offshore tax havens.
Therefore, they reduce their tax burden. However, these companies are left without check, and they can operate as they please. They can skim their clients for all their money as they have no one keeping them in check. There are many cases where even regulated brokers have made horrible mistakes, but unregulated brokers carry illegitimate operations or malpractices more often. Therefore, a regulated broker is still a safer option.
There is an outcry out there. Many former users complain their accounts are suspended for no reason. First, they couldn’t withdraw their balance, and after a while, they are locked out of their account. No one cared to give them a reason.
Its common in the forex marketplace, especially with an unregulated broker. It is a sign of a Boxed System. A boxed system is the one where you don’t know how the strategy works. For instance, their product is only a series of indicators or a service that informs you when’s the best time to trade. This hardly makes you a better trader because you don’t know whats happening behind the scene. If a product or signal service stops, you are left with nothing.
This is exactly the case with MIB 700 users. Yes, they made money in the start, but they have to start from scratch now. The company stopped its services and blocked everyone out without explaining.
MIB700 is an unregulated broker that hides its history, and team. It creates a fake opportunity to skim money out of its client. We don’t need to say this is a fake broker and you should stay away from it. Sooner or later, MIB700 is going to scam you.