BrightFinance – Are They Safe?

Website URL: www.brightfinance.co

Founded: 2020

Regulations: Unlicensed

Languages: English, Arabic, German, Spanish, French, Italian, Polish, Chinese

Deposit Methods: Bank Transfers, VLoad, PraxisCashier

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Stocks Trading, Forex, Binary Options, Cryptocurrencies

Trading Accounts and Conditions

Here is the list of trading accounts offered by BrightFinance:

• Explorer Account: The minimum amount you need to deposit to use this account is $250. The spreads start at 1 pip, but this information is unverified.
• Basic Account: The minimum deposit for this account is $2,000.
• Silver Account: The minimum deposit is $10,000.
• Gold Account: You need to deposit at least $25,000 to use this account.
• Platinum Account: You are required to put in at least $100,000 to use this account.

There is no information provided about the leverage that is offered by this broker. We also do not know if there are other commissions or fees that they charge for trading with them.

BrightFinance – Advantages

Here are the advantages we found in BrightFinance:

• Spreads Seem Attractive

According to BrightFinance’s website, you are offered a spread of 1 pip, which is very favorable for brokers. The average spreads for foreign currency trading lie between 0.5 pips and 1.5 pips, so this broker’s spreads fall perfectly in the middle of this range.

We must, however, warn our readers that we were personally unable to verify this information, so we can only go by what is written on their website.

• Range of Trading Instruments

Another plus that we have found with this trader – based on the information on their website – is the range of trading instruments they have on offer. There are tons of forex pairs from which to choose, as well as Contracts for Difference for Cryptocurrencies, stocks and commodities.

BrightFinance – Disadvantages

The two advantages listed above are not enough to take away from the seriousness of the disadvantages we found with this broker.

• Complicated Corporate Background

There is a lot of confusion about which company or companies own and operate this brokerage. The broker states that it is owned by a company called Cryptographiq Ltd, a company registered in Cardiff, Wales, with its headquarters in Leeds, England.

In the same breath, the broker refers to itself by another name – FD Finance.

Next, the broker claims to be owned by two separate companies – Capital Letter GmbH and Capital Letter Ltd. The first is based in München, Germany, while the second is based in the Marshall Islands.

So much of confusing information only renders this broker virtually anonymous!

Plus500

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AvaTrade

$100

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• Unregulated Broker

Anyway, with so many different companies mentioned in so many different locations, we decided to check whether this broker has a license to operate from any one (or more) of these countries.

First – the Marshall Islands. This territory is a known destination for scammers because of its lax regulations for financial services providers.

Second – the UK. To operate in the United Kingdom, a broker must be regulated by the FCA (Financial Conduct Authority). All registered companies’ names are listed on the financial watchdog’s online register. So, we checked and came up empty.

Third – Germany. Once again, we checked the local financial authority, the BaFin’s online register. And once again, none of the companies mentioned by BrightFinance are registered with this agency.

All in all, you are dealing with a broker that is unregulated and a scammer to boot.

• Blacklisted by CNMV

And how do we know that this broker is a scammer? Because the CNMV, the Spanish financial authority, has issued a public warning against this broker for that very reason!

The only time a financial authority will issue such a warning is when there have been numerous complaints against a broker that they have been scamming their customers. So, BrightFinance is clearly a scammer.

• No Support for MT4

Another downside to trading with this broker is that you will not be given the opportunity to use the MT4 (MetaTrader 4) trading platform. This platform is preferred by 80% of traders for a reason – you get great charting and market analysis tools, as well as algorithms for automatic trading.

What you will get with BrightFinance is we strange-looking web-based platform that has directly imported charts from a well-known charting website called TradingView. In essence, this platform barely does what it is supposed to do.

• Obscure Payment Options

Another strange – and worrying – point is that this broker offers you just 3 options for payments: Bank Wires, VLoad and PraxisCashier. Most of you may not even have heard of the two e-wallets.

The more popular payment methods such as credit and debit cards such as Visa, Maestro or even MasterCard are not accepted. And the most popular and reliable e-wallets such as Skrill and Neteller are also missing.

• No Demo Account

The only reason we were able to access the trading platform to see what it was like was because we opened a live account with BrightFinance. This broker does not offer a demo account, and when we saw the kind of platform they were offering, we realized why.

We were also unable to verify the spreads that this broker claims to offer because of the lack of clarity on their trading platform.

• Unknown Leverage

Another factor that is against this broker is that they have not mentioned the leverage ratios they offer. This is a critical piece of information since it allows traders to see if their trading strategies would fit into what the broker has to offer.

Conclusion

BrightFinance is not a broker to be trusted. It is clearly a scam operation and if you decide to deal with them, the chances of your losing all your money to them are extremely high. We recommend that you stay away from this brokerage.

BrightFinance

2.6

User Experience

3.4/10

Payment Options

2.3/10

Security

2.5/10

Support

2.2/10

Reputation

2.4/10

Pros

• Spreads Seem Attractive
• Range of Trading Instruments

Cons

• Complicated Corporate Background
• Unregulated Broker
• Blacklisted by CNMV
• No Support for MT4
• No Demo Account