The company is licensed by the Vanuatu Financial Services Commission (VFSC) as a dealer in securities. Even though such a license does not mean much in the trading world (because of the tax regulations in offshore zones) it is better than nothing. At the same time, however, it is nothing that assures us that SmartHubFX is a legit broker.
However, in our thorough SmartHubFX review we only found that the MT5 is available on the broker’s website and actually could not test it for free. The minimum capital holdings requirement set out by VFSC is just $2,000 while the Forex brokers authorized in the UK or Cyprus have to maintain €730,000 at all times.
Most importantly, the financial service providers in the EU have to arrange compensations schemes if the broker is insolvent as well as adhere to all of the rules introduced by the ESMA.
Another sign that SmartHubFX may be a scam is the fact that this broker does not provide much detail about the trading environment that they offer. It has not disclosed what leverage levels it provides – or what is the minimum deposit required. There are no demo versions or accounts too and the trading conditions are not clearly presented on the website which makes potential clients unaware of the trading costs and many other key aspects of this service.