No Regulation: VRN Capitals' Equivocation does not Hide the Truth of Illegitimacy

A few scammers will steal regulatory information from legitimate brokers and falsely claim to be regulated. But many more scammers, like VRN Capitals, try to obfuscate when asked regulatory-related questions.

No regulatory information found

VRN Capitals shows very attractive trading conditions on its webpage - low spreads, high leverage, and a minimum deposit of even $10. The company also claims that clients' funds are protected by “Solid Regulatory Protection”. But in this dazzling pile of information, only the most important regulatory information for investors can not be found, neither the regulatory number nor the regulator.

We had no choice but to trace the regulation of the broker through its contact information. The website shows that the company's address is in the UK, and the contact number is also a UK phone number. So we tried to find the license of this company in the FCA. Unfortunately, all we could find was a warning against the company, stating that it provided financial products and financial services to UK citizens without authorization. Obviously, this is not legal.

There are more and more scammers on the market like VRN Capitals, with the attitude of trying to muddle through and never mentioning anything related to regulation. For professionals, this is an obvious red flag, and it is often possible to find the appropriate regulator for a license search through the country where the company is based.

But for the newbies who are distracted from regulation by such a scammer, and, at the same time, are caught by the attractive trading conditions, there is a high risk of falling for it.