Attention: Japanese Broker Scheme GEMFOREX Received Red Compliance Rating!

FinTelegram reviewed and rated Gemforex broker scheme
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GEMFOREX is a Japanese offshore brokerage scheme registered with the FSA Seychelles as a securities dealer. The website names as operators the two offshore entities GEMFOREX Limited and GEMTRADE Co. Ltd in Seychelles and, since December 2022, also ZRX Technologies Ltd in Cyprus. Similarweb statistics show that almost 100% of the nearly 9.7 million website visitors come from Japan. Here is our initial review and our rating.

Key Data

Trading nameGEMFOREX
ActivityCFD, forex, crypto brokger
Social mediaTwitter
Legal entitiesGemtrade LLC, SVG old
Gemtrade Co., Ltd, Seychelles
Gemforex Limited, Seychelles
ZRX Technologies Ltd, Cyprus
Related individualsGeorgios Savvidis (LinkedIn)
Jessica Kim (LinkedIn)
JurisdictionsCyprus, Seychelles
RegulatorsFSA Seychelles Securities Dealer License No SD116
Leverageup to 1:500
Investor protectionNo
Trustpilot3.2-star rating with average trust level
Payment optionsBank wire, e-wallet, crypto
Payment processorsSpectrum (Equals Money UK), SticPay
WarningsFSA Japan
Compliance RatingRed

Short Narrative

GEMFOREX broker scheme and its entities

The Japanese GEMFOREX brokerage scheme has been active for many years, but has undergone a restructuring in December 2022. GEMTRADE LLC in St. Vincent & The Grenadines was replaced by GEMFOREX Limited in Seychelles, which has resolved a securities dealer license from the FSA Seychelles. The individuals behind the broker scheme are not disclosed.

In December 2021, GEMFOREX received its 15 minutes of fame when it announced a sponsorship with soccer icon David Beckham, unveiling him as Brand Ambassador. No details were announced, and nothing has been heard since.

Regulatory Check

GEMFOREX claims to be a Japanese broker scheme. The operator, GEMFOREX Limited, is a company licensed by the FSA Seychelles as a Securities Dealer. GEMFOREX also addresses clients in the EEA regimes and most other jurisdictions worldwide for which it does not have regulatory authorization.

GEMFOREX bank account withe Spectrum Payment Services

In our review on February 19, 2023, we were able to onboard as an EEA resident without any issues. After registering and confirming the email address, unlimited pre-KYC deposits would have been possible via crypto or bank transfer to the GEMFOREX Limited account at Spectrum Payment Services. This violates FCA or ESMA regulatory requirements.

GEMFOREX also offers retail clients a maximum leverage of 1:500. However, only a maximum of 1:30 is allowed for retail clients in most Western regulatory regimes. In this respect, GEMFOREX also violates regulatory requirements.

Investor Protection And Rating

As clients of an offshore broker, clients are not entitled to investor compensation schemes as implemented in most Western jurisdictions. They are also not entitled to the support of Financial Ombudsman Services.

Nothing is known about the operators and controlling individuals. The information provided on the website is not sufficient. Plus, we found regulatory violations. Thus, we rated GEMFOREX as “red. “

You should not increase your risk by working with offshore brokers, even if they are not a scam, especially in high-risk areas such as Forex, CFD, or Crypto. We, therefore, recommend you be careful with GEMFOREX.

Share Information

If you have any information about GEMFOREX, its operators, or its facilitators, please share it with us through our whistleblower system, Whistle42.

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