Varna Trade Company Overview:
According to Varna Trade website, the broker claims to be headquartered in Tulsa, Oklahoma, providing retail and commercial banking services in the Midwest and Southwest regions of the United States. It asserts itself as one of the 50 largest financial services companies in the U.S. and the largest in the state of Oklahoma, managing over $4 billion in assets for government and corporate clients. Interestingly, the introduction provided closely resembles that of several other companies. Additionally, as of November 14, 2023, the official domain registration for this broker is less than a month.
Is Varna Trade Compliant and Legal? Does it hold relevant financial regulatory licenses?
Varna Trade states on its official website that it is regulated by the National Futures Association (NFA) and the Financial Crimes Enforcement Network (FinCEN), with NFA registration number 0559712 and MSB registration number 31000257135387.
Upon verification by TraderKnows, Varna Trade is only a non-member entity of the NFA and is not regulated by the NFA. FinCEN, a supervisory organization for anti-money laundering, does not have any regulatory authority over Varna Trade's forex margin trading activities. Therefore, Varna Trade appears to exploit investors' limited knowledge of regulatory agencies through false advertising and illegal operations.
Varna Trade shares a highly similar website design with multiple other brokers, including Kaerm IM, RH Trade, HCapitalForex, Arlington Asset Investment Corp Ltd, and Huigu Limited. These broker websites seem to be produced from the same template and are registered with FinCEN and the NFA to confuse investors.
Trading Instruments Offered by Varna Trade:
According to the information available on the Varna Trade official website, the broker provides trading services for various financial assets, including forex, stocks, indices, commodities, energy, and precious metals.
Trading Software Offered by Varna Trade:
Varna Trade provides users with a proprietary web-based trading platform. This trading platform's rules are highly opaque, and traders may experience price manipulation, slippage, and high trading fees.
Fund Security:
Varna Trade has not disclosed any third-party fund supervision information on its official website, raising concerns about the security of users' funds.
Deposit and Withdrawal Channels at Varna Trade:
Varna Trade has not revealed any information about user deposit and withdrawal channels on its website, making it unclear how users can deposit and withdraw funds.
Leverage Ratio:
The broker claims to offer leverage ratios ranging from 1:100-1:500, which is significantly higher than the typical leverage ratios of 1:10-1:100 found in compliant trading platforms.
Conclusion:
Varna Trade appears to be an unregulated forex broker engaging in illegal financial activities. The broker has not provided critical information about user fund security, deposit and withdrawal channels, etc. Currently, Varna Trade is marked as "SCAM" on TraderKnows. We advise you to stay away from this platform to prevent potential financial losses.
