Be Careful! Unauthorized Offshore Broker HonorFX Solicits European Clients!

HonorFX is an offshore broker operating through Honor Capital Markets Limited, registered in Malaysia, Mauritius, and St. Vincent & The Grenadines. Similarweb statistics show that HonorFX has grown rapidly in recent months, with more than 38,000 website visitors as of December 2022. More than 80% of them have come from India and more than 7% from Cyprus. As a payment facilitator, we discovered Cyprus-based BrightCart. Stay away from unauthorized offshore brokers.

Key Data

Short Narrative

HonorFX operates primarily in India, Pakistan, Vietnam, and other Asian countries. On ForexPeaceArmy (FPA), we have discovered some complaints from clients from these regions.

The payment agent for the HonorFX scheme is Honor Marketing Ltd, registered in the UK, where Indian Indresh Shah is the director and controlling person.

We have been able to register with HonorFX as residents of EEA jurisdictions without any problems. The countries are included in the drop-down list.

Regulatory Issues

HonorFX has offshore licenses as a securities dealer in Mauritius and Labuan. However, this does not entitle the broker to offer financial services in other regulatory regimes such as the EEA. Furthermore, offering maximum leverage of 1:500 violates regulatory requirements in the EEA jurisdictions. On a positive note, no pre-KYC deposits were possible, i.e., no deposits before verification of identity and address.

Clients of offshore brokers are not entitled to investor protection schemes or financial ombudsman services. Thus, they have an increased risk in an already high-risk segment. Stay away; it doesn’t pay in the end.

Share Information

If you have information about HonorFX, its operators, and its facilitators, please share it through our whistleblower system, Whistle42.