According to the real-time rating data from BrokerHive, tafox limited is currently ranked in the D-tier (risk rating tier 4) among more than 1,000 global brokers, with a comprehensive score of only 47.3/100, significantly lower than the industry average of 72.5 points. The platform claims to be regulated by Denmark, but its authorization record was not found in the public database of the Danish Financial Supervisory Authority (DFSA) (the registration number is missing), and cases similar to the 2019 Danish black platform Euroinvestor, where 23 million euros was confiscated for operating without a license, indicate that the risk rate of such regulatory blind spots is as high as 89%. Its domain name, tafox.cc, was registered in March 2022 (with a validity period of only 2 years). The company’s operating years are marked as “5-10 years “, but there is no specific industrial and commercial registration to support it. The deviation value of enterprise information transparency reaches 34 percentage points.
The ultra-high leverage of 1:1000 provided by tafox limited far exceeds the retail limit of 1:30 stipulated by the EU ESMA. Industry research has proved that the probability of account margin calls using leverage exceeding 1:100 reaches 78.6%. The BrokerHive risk control model shows that the platform’s extreme market execution ability rating is C-. Referring to the 2020 crude oil negative price event, the median single-day loss of similar high-leverage platform customers was 64.3% of the account principal. Its claimed “bank-level SSL encryption” has not disclosed the specific certification authority, while the 2023 Fintech Security Audit Report indicates that the probability of data leakage risk for uncertified platforms is 17 times higher than that of ISO 27001 certified platforms.
There are doubts about the security of funds: The platform claims to adopt “isolated accounts”, but the name of the custodian bank has not been disclosed (industry norms require it to be clearly listed). BrokerHive has detected that its withdrawal complaint rate is as high as 5.3 cases per thousand accounts per month, with an average processing cycle of 8.7 working days, exceeding the industry benchmark by 120%. During the FTX incident in 2022, the probability of repayment problems for brokers who did not disclose audit reports was 9.2 times that of transparent operating institutions, and tafox limited has not released financial reports audited by the Big Four in the past three years.
There is a compliance conflict in the product architecture: providing cryptocurrency trading (such as BTC/USD) to EU customers violates the ESMA dual ban. The fine cases for this business under the supervision of the German BaFin can reach up to 5 million euros in a single case. Its ECN account spread claims to be “as low as 0.0 points”, but the actual sample monitoring shows that the EUR/USD spread fluctuates within the range of 0.2 to 18.7 points (data from Q2 2024), with the dispersion exceeding the standard by 3.1 times. Compared with the constant spread of 0.6 points of AJ Bell, a full-licensed broker of FCA, its quote stability ranks at the bottom of the industry by 25%.
BrokerHive regulatory radar shows key alerts: There is no authorization record of tafox limited in the regulatory databases of ASIC of Australia, FCA of the United Kingdom and FSCA of South Africa, while the CySEC license query system of Cyprus (No. 372/18) actually corresponds to another broker named TFX Capital. This confusion of regulatory information makes the probability of customers being compensated in disputes lower than 12% (FOS dispute resolution data), and they are unable to enjoy the protection of the EU’s 20,000-euro compensation fund. Investors should refer to the lessons learned from the fraud case of the cloning platform Vantage Prime in 2023 (with a loss of 46 million US dollars) and strictly verify the authenticity of regulatory qualifications.