YunikonFX is a forex and electric communication network (ECN) broker offering trading services in forex, stocks, commodities, cryptocurrencies, and indices. Sometimes called Yunikon FX, many traders question if they’re a scam or legit broker. Despite the hazards that come with operating as an unlicensed broker, and trading with them, unlicensed brokers still exist and attract quite the number of users.   

Ideally, only regulated, and licensed brokers should be in operation. Though the fact remains, unregulated and unlicensed brokers operating alongside their regulated and licensed counterparts are becoming increasingly widespread. It is a growing trend that many industry insiders acknowledge but the lack of strong action from authoritative bodies creates the need for stricter trading regulations.

The lack of penalties on unregulated brokers and less restrictions on unlicensed brokers make it easier to thrive. Licensing a brokerage comes at a price in the form of fees and charges, as well as added paperwork. Perhaps for this reason, there are brokers that opt for countries that aren’t as restrictive. This allows the brokers to operate legally under the jurisdiction of a regulatory body that practises more leniency.   This leniency affords brokers the liberty to implement terms and conditions benefitting them and potentially take advantage of clients. Hence, part of the onus lies with the trader to protect themselves by knowing the difference between a regulated and licensed broker and one that is not properly licensed.  

YunikonFX: Regulated and Licensed?  

Brokers have the responsibility of getting licensed by a relevant regulatory body. A few reputable ones are the National Futures Association (NFA), Dubai Financial Services Authority (DFSA), Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), and Financial Services Authority of Seychelles (FSA).

Yunikon does not clearly state on their website if they are licensed with any relevant regulatory body, but a few websites and YunikonFX reviews make mention of Yunikon claiming to be licensed with the NFA. However, this has been refuted by a source that ran a background check on Yunikon’s affiliation with the NFA.

For further information, please visit the NFA website and run a basic firm search of Yunikon Financial Limited (registered company). It clearly states that they are not an NFA member. Otherwise, to visit the webpage directly, click on this link (BASIC | NFA (futures.org).

YunikonFX Background in Brief and ASEAN Link

YunikonFX raises suspicions by the fact that apart from a few Asean countries: Malaysia; Thailand; Vietnam; and Indonesia, YunikonFX does not accept bank transfers. They accept only cryptocurrencies.  

Specifically, the Securities Commission (SC) of Malaysia has taken notice and on 11 June 2022 added YunikonFX to their Investor Alert List. The listing can be viewed here: Investor Alert List (as at 11/6/2022) – Investor Alerts Announcements | Securities Commission Malaysia.

Others have also taken note of the fact that YunikonFX accepts wire transfers from a selected few countries in Asia. Of this, industry insiders are of the opinion that YunikonFX targets their forex business to traders from these countries in particular.   

The website www.yunikonfx.com lists on its contact page its registered company, Yunikon Financial Limited with the address: Beachmont Business Centre, 348, Kingstown, Saint Vincent, and the Grenadines.

Those not in the know should understand that the FSA states on their website that forex trading is not licensed in St. Vincent and the Grenadines. It is further explained that while companies registered here are considered legal businesses, they are, however, when engaging in any forex trading activity, doing so unlicensed. A tax haven such as St. Vincent and the Grenadines offers tax benefits and discounts to non-residents who register a business here. Incidentally, it has up until January 2023, also been a forex haven due to its lax regulations on forex trading activities.

On 12 January 2023, the FSA of St. Vincent and the Grenadines issued a formal notice notifying all registered forex businesses on new requirements for overcoming forex scams.

YunikonFX: Quick Highlights

Traders, especially beginner traders might find solace in YunikonFX owner, Kitamashi Nukumura. Yukinox’s website domain, yunikonfx.com is listed alongside an owner named Kitamashi Nukumura, but further fact-finding determines that no such person exists.

Marketing YunikonFX and Its Financial Instruments

It might come to the attention of website visitors and YunikonFX reviewers that it singles itself out with the tagline: “Awarded Asian Services and European Hedge Fund Services

and at the Professional Trader Awards 2019.”

Aside from its purposeful targeting of clientele, and a credible semi-professional looking website, website visitors and reviewers might have missed that www.yunikonfx skimped on providing a detailed listing of trading instruments that they offer to trade on their platform, YunikonFX Trader. The website instead emphasises on the YunikonFX affiliate membership.

YunikonFX Affiliate Programme a Ponzi Scheme?

It won’t take much for seasoned traders to realise the flaw in YunikonFX’s affiliate membership programme. Very much like a multi-level marketing (MLM) programme, Yunikon categorises its trading commissions into two types: Trading Commissions and Manual Trading Commissions.

1. Trading Commissions
   This affiliate membership programme incentivises members through a unilevel compensation system. This payment structure is typical of most MLM programmes which places the first or main affiliate at the top of a team. After which, any other member they recruit would be placed under them, or their downline.
   
   From the main member who has a level under them referred to as level 1, if any member from this level recruits another member, said recruited member would be placed under the level 1 member. This goes on for several levels.
   
   Every member gets compensated based on the team members they recruit. The YunikonFX affiliate membership has four types of traders: Samurai, Daimyo, Shogun and Emperor.
   
   Here is how each trader type can earn commissions:
   • Samurai Traders – 300% on level 1
   • Daimyo Traders – 300% on level 1, 200% on level 2, 100% on level 3 and 50% on levels 4 to 6
   • Shogun and Emperor Traders – 300% on level 1, 200% on level 2, 100%o n level 3 and 50% on levels 4 to 15
     
2. Manual Trading Commissions
   YunikonFX allows manual trading and the affiliate membership programme runs slightly different. Commissions are based on a flat six-level deep commission depending on the manually traded lots.
   
   The stipulation for manual trades here is that commissions can only be earned after a trader’s position has been open for five minutes. Below is a rundown of how commissions can be earned from Yunikon’s manual trading commission system.
   
   • Level 1: 200% of traded lots  
   • Level 2: 100% of traded lots
   • Level 3: 70% of traded lots
   • Levels 4 and 5: 50% of traded lots
   • Level 6: 10% of traded lots

Stating off the bat that YunikonFX is a scam at this point still remains an argument that rests on shaky ground. However, it is evident that the YunikonFX affiliate membership closely resembles an MLM programme. This alone, should alert a trader to the possibility of a YunikonFX scammer being true to word.

At this juncture, whether YunikonFX is an MLM or Ponzi scheme is left to the trader’s discretion. Where an MLM might not be altogether a scam, a Ponzi scheme is undoubtedly a sham of a business opportunity.   

YunikonFX for New Traders

At the beginning of a venture is when a trader meets the most crossroads. Naturally, a new trader would be at odds with themselves in choosing a forex broker of choice. Understandably, the novelty and lack of knowledge in trading would cause any new trader to be uncertain in their decision-making in the new world of trading.

Several things to pay mind to are broker, trading platform, broker features, financial product profitability and more.

It is entirely up to a new trader to choose which broker they go for. Unsurprisingly, many traders do consider unregulated brokers. Possibly, a high risk appetite renders a new trader, or any trader for that matter, accepting of unregulated brokers. Another reason could be the perks of executing trades with an unregulated broker.

Below are the upsides and downsides of trading with an unregulated broker:

1. Upsides:
   • Bonuses – Without the extra burden of paying for costs brought on by regulatory compliances, the broker is left with more than enough funds for marketing. Part of this budget could go to customer incentives such as large bonuses.
     
   • Leniency – Unregulated brokers are not regulated by relevant trading bodies and therefore get to evade stringent policies. In return, these brokers are able to grant their customer no-hassle access to their trading platform. Which would mean the sign-up process would be a breeze, or in Yunikon’s case, the YunikonFX login process, would be fast and easy with no requirements and with less request for the usual know-your-customer (KYC) documentation required by regulated and licensed brokers.
     
   • Promising Trading Prospects – Unregulated brokers usually offer higher leverages and a wider range of financial products such as synthetic indices. These attractive trading conditions cater to the needs of many traders.  
     
2. Downsides:
   • Risk almost 100% on trader – When an investor trades with an unregulated and unlicensed broker, they run the risk of losing all their trading capital. With the liberty to set policies; and terms and conditions without the watchful eye of a relevant authoritative agency and regulating body, an unregulated broker can change their requirements and terms and conditions as they please.
     
     A trader choosing to trade with an unregulated broker must keep these things in mind.
     
   • No Peace of mind – Trading with an unregulated broker may be a treat for a trader looking to trade in an uninhibited trading ecosystem. However, a trader should keep in mind that should there be any dispute, an unregulated broker, unlike a regulated, one would have the say.
     
     Usually, in a dispute with a regulated broker, the relevant regulatory agency .i.e., FSA would step in as mediator. In the case of an unregulated broker, they would act as both defendant and judge.  

Any broker would ensure their clients will get the best trading experience possible, from being a licensed trading partner, having a recognised trading platform to accessible customer service.

All traders should definitely start their trading research on getting the right trading broker and platform. For starters, check out this user-friendly and client-centric trading broker, ZFX. Those unable to access the hyperlink can do so here: ZFX: Forex & CFDs Online Trading Platform | Regulated FX Broker. ZFX offers trading services in multiple markets: stocks, indices, forex, crypto and commodities.

Last Considerations

YunikonFX is not a trustworthy broker by any means. With limited withdrawal options and the lack of an app (instead providing trading on website), there are many other reasons to reconsider YunikonFX as a trader’s main broker.

Any trader would benefit from considering other brokers.

FAQs

1. Is YunikonFX safe?
   YunikonFX raises suspicions by the fact that apart from a few Asean countries: Malaysia; Thailand; Vietnam; and Indonesia, YunikonFX does not accept bank transfers. They accept only cryptocurrencies. 
   
   Specifically, the Securities Commission (SC) of Malaysia has taken notice and on 11 June 2022 added YunikonFX to their Investor Alert List. The listing can be viewed here: Investor Alert List (as at 11/6/2022) – Investor Alerts Announcements | Securities Commission Malaysia.
   
2. Is YunikonFX legit?
   Yunikon does not clearly state on their website if they are licensed with any relevant regulatory body, but a few websites and YunikonFX reviews make mention of Yunikon claiming to be licensed with the NFA. However, this has been refuted by a source that ran a background check on Yunikon’s affiliation with the NFA.
   
   For further information, please visit the NFA website and run a basic firm search of Yunikon Financial Limited (registered company). It clearly states that they are not an NFA member. Otherwise, to visit the webpage directly, click on this link (BASIC | NFA (futures.org).