Is VSMarkets Ltd a Scam?

At FXCanary, broker safety is not a gut feeling – it’s a forensic, data-driven assessment built around five pillars: regulatory status, client-fund protections, corporate transparency, aggregated industry data, and verified trader feedback. Our Scam Risk Score distils these into a single figure from 0 (lowest risk) to 100 (highest risk), placing each broker in one of four bands: Safe, Guarded, Elevated, or Severe risk. A Guarded rating – like the 34/100 assigned to VSMarkets Ltd – signals that while the broker meets a baseline of regulatory oversight, material red flags or information gaps prevent us from awarding a top-tier safety designation.

When independent user reviews are non-existent, as is the case for VSMarkets Ltd at the time of writing, the weight of our analysis falls heavily on regulatory registries and corporate records. We cross-check every licence number against the live public register of the relevant authority, verify the domain ownership and operational addresses, and scrutinise the broker’s own website for risk disclosures, compensation scheme membership, and clarity on client fund handling. The absence of user feedback is itself an important part of the picture – it means traders must rely almost entirely on the protective framework of the regulator, which we examine in depth below.

VSMarkets Ltd holds a Cyprus Investment Firm (CIF) licence from the Cyprus Securities and Exchange Commission (CySEC), bearing licence number 434/23 and initially authorised on 1 August 2023. The entity originally operated as Klips CY Ltd but was acquired by Andrey Stoychev in late 2025 and rebranded to its current name, as confirmed by public announcements and the CySEC register. Today the firm operates the consumer-facing brand ‘VS Markets’ from its registered address at 116 Gladstonos, M. Kyprianou House, 3rd & 4th floor, 3032 Limassol, Cyprus.

A CySEC CIF licence is among the most widely recognised regulatory stamps in the retail CFD and forex industry, but its value depends on thorough ongoing supervision. Authorised firms must comply with the EU’s MiFID II framework, maintain minimum capital requirements, segregate client funds, and participate in the Investor Compensation Fund (ICF). The licence also grants passporting rights across the European Economic Area, which means VSMarkets Ltd can lawfully offer its services to clients in other EU member states – a point clearly emphasised in its cross-border permissions.

Nevertheless, we note that CySEC has, in the past, sanctioned a number of its regulated firms for compliance failings. A licence alone is not a guarantee of ethical conduct. For VSMarkets Ltd, the recent change of control and rebranding add a layer of corporate complexity that traders should factor into their due diligence. We have verified the licence status as ‘Authorised’ on the CySEC register at the time of writing, but we stress that ongoing monitoring is essential.

One of the key safety mechanisms for CySEC-regulated brokers is the mandatory segregation of client funds from the firm’s own operating capital. This means that in the ordinary course of business, trader deposits are held in separate, designated bank accounts and cannot be used for the broker’s own expenses. In the event of insolvency, these funds are ring-fenced and should be returned to clients before any other creditors are paid.

VSMarkets Ltd explicitly states on its website that client funds are held in segregated accounts and are covered by the Investor Compensation Fund (ICF). The Cypriot ICF provides protection of up to €20,000 per eligible client if the broker fails and cannot return client assets. While this is a meaningful safety net, it is not as high as some national schemes (for example, the UK’s FSCS covers up to £85,000). Traders with balances exceeding €20,000 should consider this limit and potentially spread risk across multiple regulated entities.

A further layer of retail protection is negative-balance protection, mandated by CySEC for retail clients. This ensures that a trader’s losses cannot exceed the funds deposited in their account. VSMarkets Ltd communicates this on its website, and given its CIF status, we would expect it to comply. For professional clients, these protections may be waived; therefore, traders opting for a professional designation should be fully aware that they could lose more than their initial deposit.

Our Scam Risk Score of 34/100 places VSMarkets Ltd in the Guarded category – a middle ground that acknowledges the broker’s legitimate CySEC authorisation while highlighting a series of factors that prevent a more confident safety rating. The core strength is clear: a CIF licence from an EU regulator, with mandatory protections like fund segregation, ICF coverage, and negative-balance protection for retail clients. These alone would drive the score lower if no other concerns existed.

However, several elements raise cautionary flags. First, the broker’s recent corporate transformation – the acquisition, rebranding and change of beneficial ownership – means its track record under the new structure is essentially non-existent. A new board or management team can dramatically alter a firm’s compliance culture and business strategy, and we have not yet seen a sustained period of operation under the VS Markets banner. Second, there is a stark absence of independent user reviews and feedback across major trader communities and industry databases. Without real-world experiences, we cannot assess how well the broker handles withdrawals, trade executions, or customer service in practice.

Finally, we note that the firm’s website emphasises institutional and bespoke solutions, which may suggest a shift in target clientele. While this is not inherently negative, it adds to the overall picture of a broker still defining its retail offering. The Scam Risk Score therefore balances the robust regulatory framework against these informational and operational gaps, landing firmly in Guarded territory.

The transition from Klips CY Ltd to VSMarkets Ltd is more than a cosmetic rename; it represents a change of control approved by CySEC following an acquisition by Andrey Stoychev. Such corporate restructurings are common in the forex industry, and the regulator’s approval indicates that the new owner has met the fitness and probity requirements. However, the previous entity’s history – however brief – effectively concludes at the point of sale, and the new management’s philosophy and operational capabilities are yet to be proven.

For traders, the rebrand introduces a period of uncertainty. Even if the licence remains intact, operational changes – from liquidity providers and platform providers to back-office processes – can affect trade execution and the handling of funds. The fact that VS Markets’ website heavily promotes institutional and professional services, while also accepting retail clients, suggests a potential dual approach that could see differing levels of protection depending on client classification. We urge retail traders to carefully review the updated terms and conditions, risk disclosures, and client categorisation policies to understand exactly which protections apply to their account.

A common safety threat in online trading is the presence of an unregulated offshore entity operating alongside a regulated one, often using a similar brand name. In the case of VSMarkets Ltd, our investigation has found no evidence of a separate offshore company with the same brand that would target non-EU clients under weaker oversight. The client registration portal includes Saint Vincent and the Grenadines in its list of countries, but this merely indicates that clients from that jurisdiction may be accepted – not that the broker is licensed there. We strongly advise traders to ensure they are onboarded by the CySEC-regulated entity and not by any other entity that may later appear under a similar name.

Clone risk – where scammers impersonate a legitimate broker – is a separate concern. The name “VS Markets” is generic, and unsophisticated clones could easily create a lookalike website. At present, we have not identified any confirmed clone attacks, but that lack of history may simply reflect the brand’s newborn status. To protect yourself, always manually type the official domain (vsmarkets.com) into your browser, and verify that any account-opening correspondence comes from that domain. In the events section of the CySEC website, you can also find warnings about unauthorised firms – we recommend checking that page regularly if you hold an account with VS Markets.

Given the Guarded safety rating, a proactive approach to self-protection is essential. Start by confirming the broker’s licence directly on the CySEC website using the licence number 434/23, and check that the domain vsmarkets.com matches the official record. Do not rely solely on a licence number displayed on the broker’s site – these can be falsified. Bookmark the regulator’s register and periodically verify the status remains ‘Authorised’.

Second, fully understand the compensation and protection limits. The Cypriot ICF covers up to €20,000 per client, not per account. If your total balance across multiple accounts with the same broker exceeds this amount, you are exposed to the excess in a default scenario. Consider keeping trading capital with this firm within that threshold, or divide your funds across several regulated brokers. Additionally, if you are categorised as a professional client, insist on written confirmation of which protections are waived (negative-balance protection, ICF eligibility, and the right to recourse to the Financial Ombudsman of Cyprus).

Finally, document everything. Take screenshots of all deposits, withdrawals, and correspondence with the broker. Use only regulated payment methods that leave a clear audit trail. In the event of a dispute, having a comprehensive record will be invaluable. We also suggest monitoring industry forums for any early user feedback as the broker’s retail base grows, and report any suspicious activity immediately to CySEC.