Nostrobank Review - is Nostrobank.com scam or good forex broker?
Posted on January 25th, 2020
Nostrobank offers forex trading through three account types. Spreads at this brokers are fixed. There have been several complaints against the company in popular forums.
The Company. Security of Funds
Keyds Lydya Ltd
Nostrobank is owned and operated by KEYDS SCOTLAND LP, a subsidiary of Keyds Lydya Ltd. which is registered in Marshall Islands. The company does not stand under any specific financial regulation, which is a concern for us. The company also owns Pips-fx.com, a review of which you may find here. They are also affiliated, with MultiplyMarket, but the relations aren't as clear.
You may already know this, but financial regulatory agencies are state entities which impose certain restrictions on companies in the sector. Different regulators apply different principles and practices. For instance, Australia’s ASIC requires brokers to have capital holdings of at least AUD 1 million, as a sign of good will. Furthermore, client’s funds must be kept in "segregated accounts", which implies the company can not use them freely.
There were a few complaints against Nostrobank on a popular forum, from users who claim they can’t withdraw their funds. This combined with the lack of regulation leads us to believe the company may be a scam.