What does our research say about Infinox Capital?

Infinox Capital, a UK-based forex and CFD broker, has come under scrutiny following a £4 million loss for its clients. The scandal involves allegations of deceptive practices and a failed trading scheme promoted by social media influencer Gurvin Singh.

The Scam Unfolds
Singh used his social media presence to lure inexperienced investors into high-risk forex trades via Infinox Capital. Promising substantial returns with minimal risk, many followers lost significant sums when the market crashed in December 2019.

Infinox’s Response
Infinox, while FCA-regulated in the UK, operates through offshore entities that allow for high-leverage trading, which increased risks for clients. The company denied wrongdoing, asserting full compliance with regulations.

Regulatory Concerns
The Financial Conduct Authority (FCA) launched an investigation into the scandal, highlighting issues related to offshore brokers and the effectiveness of financial regulations. This case stresses the need for stricter oversight in the industry.

Lessons Learned
The scandal underscores the risks of forex trading, particularly through offshore brokers. Investors should conduct thorough research, ensure brokers are properly regulated, and be cautious of influencer-driven promotions.