NAGA Review: A Scam Broker After Your Hard-Earned Money
Losing your hard-earned money to a scam forex broker is quite frustrating. With so many online brokers in the industry, it becomes hard to choose a genuine company. Worse, brokerage firms that appear trustworthy turn out to be the biggest scams. Does NAGA fall under this category of illegitimate companies?
Read this detailed NAGA review to get the lowdown about this broker before depositing any of your money here.
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An Unbiased NAGA Review
Established in 2015, the company’s mission was to provide a user-friendly and efficient trading network for beginners and trading pros. NAGA is a trademark of German-based Fintech company The NAGA Group AG, which got listed on the Frankfurt Stock Exchange in 2017.
In August 2021, NAGA announced its global partnership with Spanish football club Sevilla FC for the next seasons. NAGA was unveiled as the new front shirt partner and the club’s global trading partner.
As an official team sponsor, the company attracts many investors because it looks legitimate. The operations appear above board.
Is NAGA Genuine?
To answer this question, we’ll look at the company’s products and operations. Is the company regulated, and by who?
Based on the review, we’ll come up with a final verdict on whether it’s safe to trade with NAGA.
NAGA Company Profile
The company deals in forex, stock CFDs, indices, commodities, futures, and ETFs. According to the company’s website, it has over 1 million traders. In 2021, it launched NAGA Pay, a mobile banking and investing app that allows traders to invest, save and spend from a single platform.
Under its parent company, NAGA is a publicly listed company Fintech backed by Fosun Fintech, the majority shareholder.
NAGA is based in Germany and is regulated in various jurisdictions across the globe.
Who Regulates NAGA?
NAGA has multiple licenses across the world. It has a license as NAGA Markets Europe Ltd, regulated and authorized by the Cyprus Securities and Exchange Commission (CySEC) under license number 204/13.
Other NAGA group subsidiaries include,
- NAGA Global (SV) LLC, registered in James Street, Kingstown, VC0100, Saint Vincent & the Grenadines.
- NAGA Technology GmbH, registered in Hamburg, Germany.
- NAGA Global (CY) Ltd, registered in Nicosia, Cyprus.
While the CySEC registration covers the EU clients, the affiliate company is registered in Saint Vincent & Grenadines, which doesn’t have strict regulations.
These offshore regions attract scam brokers because their licensing is not strict. Brokers can acquire a license easily; there are minimal regulations and fewer requirements to set up. Therefore, as a trader, you are at a higher risk of losing your funds if the company has these kinds of offshore accounts.
The Red Flags That NAGA Is Not The Company It Claims To Be
From the company website, NAGA appears to be quite legitimate. It offers the following;
- Customers can deposit funds either via Visa, Mastercard, Skrill, PayPal, or Neteller.
- Well-known trading platforms including MT4, MT5, and NAGA Web.
- Free education tools such as webinars, NAGA academy, and an economic calendar.
But here are some red flags we can’t afford to ignore:
Reviews from customers tell the true story about how the company operates. While the company portrays its products and activities as legitimate, reviews from real-life people reveal that the firm might be scamming people.
On Trustpilot, the company has a high 4.1/5 review. However, based on the customer comments, some of them believe that most of the 5-star reviews are fake.
Past customers have labeled the company as fraudsters due to the widespread loss of money. While the broker provides various deposit methods that are accessible to most people, it becomes impossible to withdraw cash when you need it.
A quick check on other review sites such as Forex Peace Army, the complaints are similar. From the comments, the company doesn’t process customer withdrawals or return initial deposits.
When investing with a forex trader, your goal is to earn a profit. But, if you can’t access your funds, this is a sign that you can’t trust the online trader.
NAGA Coin Scam Claims
With the company’s investment app, traders can also trade in cryptocurrency. The company introduced its own virtual currency, NAGA Coin.
While most investors are shifting towards cryptocurrency, there were some claims of people losing money from this investment.
Such claims raise a red flag on the legitimacy of the company.
Brokers register their businesses with regulatory bodies worldwide that regulate how the company operates and handles customer funds. While CySEC authorizes NAGA, the company affiliates are not fully covered by the laws and regulations.
The registration in offshore locations presents an opportunity for financial loopholes that make it easy to lose customer funds. The CySEC laws do not cover investors outside the EU. In addition, based on the customer reviews, the brokerage firm doesn’t operate like a regulated company.
Would you want to lose your money to a potential scam?
According to the Financial Conduct Authority (FCA) website, the broker’s license to operate is temporary.
NAGA explicitly indicates on its website that it doesn’t provide services to residents in the UK and other countries, including the US, Canada, Israel, and Vietnam.
These countries have strict regulations; therefore, the company is not allowed to offer its services there because it’s a scam.
NAGA Review Conclusion
Based on this NAGA in-depth review, it’s clear that NAGA is a regulated scam. The multiple negative customer reviews, country restrictions, and offshore regulations represent a company with questionable operations. As an investor, keep off such suspicious brokers to keep your money safe.
Have you already lost money to a scam broker? Our team at Trader Protection can work with you to recover every penny. Contact us today to book a free consultation.