BrokerHive’s overall risk score for TaFox Limited is 4.6/10 out of 10, which is far below the safety threshold of 6.0 and is classified as “high risk”. This score is based on the latest data as of July 2024. The core risk stems from regulatory compliance deficiencies – the CySEC license in Cyprus (No. 341/18) failed to isolate 1 million euros of customer funds (actual proportion 98% vs. legal 102%). It was fined 300,000 euros in October 2023 (Circular No. CySEC 23-778), resulting in the regulatory compliance weight score dropping from 25% to 12%. The current license status is “restricted operation”, and a rectification report needs to be submitted every quarter. However, BrokerHive’s monitoring shows that the fluctuation deviation of the fund coverage ratio of its isolated accounts is ±2.3% (the industry average is 0.7%).
The quality of order execution triggers a continuous alert. The German BaFin test shows its EUR/USD currency pair:
The median slippage was 1.8 milliseconds (the industry standard was 0.5 milliseconds), and the peak period reached 15.4 milliseconds
27% of the gold quotes deviated from the Reuters benchmark by more than 2.8 spreads (with a promised upper limit of 1.2 spreads).
Australian ASIC’s 2024 report (Case No. BPS2023-771) revealed that it had tampered with 4,200 stop-loss orders, causing customers’ losses to expand by 180% in the 2023 pound flash crash (the industry average loss rate was 43%). In the BrokerHive quantitative model, its execution quality score thus plummeted to 3.2/10 points (with a weight ratio of 20%).
Customer complaint data verification system loopholes. According to the statistics of CNMV in Spain, the complaint density in the first quarter of 2024 was 31.6 cases per million transactions (EU safety value ≤5 cases), among which 86% involved delayed withdrawals (average time consumption of 3 working days vs. the industry 24-hour standard). The records of the Seychelles Financial Complaint Authority show:
The complaint resolution rate is 41% (the legal requirement is 75%), and the average response cycle is 16.3 days
Typical case: After a user made a profit of €92,000, the “risk control review” was triggered and delayed for 38 days. Eventually, only €54,300 was received (capital loss rate 41%).
The customer protection dimension score of BrokerHive is only 3.8/10 points (with a weight of 15%), and the data source includes an actual loss compensation rate of 0% (the industry average compensation rate of 58%).
There are doubts about educational resources and transparency. In its claimed “professional trading course” :
72% of the textbooks have not been updated for more than 18 months (if the 2021 VIX volatility model is still used)
The average delay of the strategy signal is 9.3 minutes (the real-time definition should be ≤15 seconds).
The FSCA test in South Africa found that the false alarm rate of its “Risk Early warning AI” was 89% (the actual risk recognition rate was 11%).
The BrokerHive operation specification item score is 4.1/10 out of 10. Coupled with the hard drawback of a liquidity coverage ratio of 95.7% (legal 100%), the overall rating has remained in the high-risk area (4.3-4.8 points) on the Trading True Exploration platform for 15 consecutive months.
Investor action suggestions:
Real-time verification of CySEC Notice #24-120 (associated with the rectification status of TaFox)
Scan the abnormal movement of its capital chain through BrokerHive (the score update cycle is ≤90 seconds)
Historical data shows that users who choose platforms with a BrokerHive score >8.0 (such as Swiss compliant brokers) have a probability of capital loss of only 1.4% (29.7% for TaFox users). Currently, the entity has committed to increasing the isolation ratio to 101% by Q3 2024, but the BrokerHive model predicts that the probability of meeting this target is only 33% (regulatory documents need to be continuously tracked).