CySEC has suspended Prior Capital Cy Ltd license

Regulator CySEC

The Cyprus Securities and Exchange Commission announces that the authorisation of the Cyprus Investment Firm Prior Capital Cy Ltd, number 221/13, is suspended in whole. Prior Capital Cy Ltd operates the brands PriorFX and Prior Capital. The main reason for the license withdrawal was the regulator’s suspicions of alleged rules violations and the company’s possible non-compliance at all times with the authorisation conditions.

The above decision was reached as the aforementioned alleged violation causes concern and risk relating to the protection of the Prior Capital Cy Ltd clients and/or constitutes a threat to the orderly operation and integrity of the market.

The regulator ordered Prior Capital Cy Ltd to take actions in order to comply with the aforementioned provisions. The company has twenty days to do that. 

Prior Capital Cy Ltd suspension terms

During the suspension period Prior Capital Cy Ltd is not allowed to provide/carry out investment services/activities as well as enter into any business transaction with any person and accept any new client. It is also forbidden to advertise itself as a provider of investment services. 

However, the company is still allowed to proceed with some of the actions that are mostly regarding its clients. Prior Capital Cy Ltd can still complete all its own transactions and those of its clients which are before it, in accordance with client instructions. It also obliged, if needed, to return all funds and financial instruments which are attributable to its
clients. You may check our list of the CySEC-Regulated Brokers.

Italian CONSOB has banned RoyalBanc and Finantik brokers

Italy’s financial markets and services provider regulator CONSOB has updated its list of forex brokers who are not licensed to operate in Italy. RoyalBanc and Finantik happened to get into the list. These firms have been offering investment services and activities to the Italian public without being authorized in the country.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the Italian governmental authority responsible for regulating the Italian securities market. The regulator is also responsible for the Italian stock exchange, the Borsa Italiana.

Are these brokers legit?

RoyalBanc is a broker that offers trading in Forex, stocks, CFDs, indices. The broker claims to be located in Luxemburg with offices in the UK. There is the first red flag and it’s the lack of any regulatory information. RoyalBanc does not provide license details and actually, there is no record of this company in the register of Luxemburg Financial Commission (CSSF). The broker is also NOT licensed in any other country and is not allowed to offer its financial services. It is just another unregulated firm that should be avoided.

As to the Finantik, it is an online Forex broker. It is a trading name of Pro Star, registered in Saint Vincent and the Grenadines. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines. Besides its offshore location, which is already a red flag, Pro Star itself has a quite bad reputation. We have reviewed some brokers operated by Pro Star (including Traderia, Finroyalty and GoldenCFD) and we do not recommend dealing with either of them. 

When engaging with brokers that do not operate on the grounds of a valid license, issued from a trustworthy authority, traders are putting their investments at higher risk. It is better to avoid dealing with offshore brokerages and choose properly regulated and reliable brokers. A good example of such are the ones supervised by the FCA or ASIC

You can share your RoyalBanc and Finantik experience with us by commenting on this post.  

Financial Options AFS licence has been cancelled by ASIC

ASIC has cancelled the Australian Financial Services (AFS) licence of Financial Options Pty Ltd (Financial Options) and also has permanently banned Queensland-based financial adviser Mr. William John Henry Houwing from providing financial services. Previously, in August 2019 we talked about the suspension of the company’s license.

Mr. Houwing, of Esk, was a director and authorised representative of Financial Options. ASIC found that between 31 August 2006 and 15 May 2019, Mr. Houwing arranged for his clients to lend money to his related entities, including: Belbrooke Pty Ltd as trustee for the Belbrooke Administration Trust; Belbrooke Pty Ltd as trustee for the Belbrooke Mortgage Trust; and Ochkit Pty Ltd as trustee for the Houwing Family Trust.

ASIC has found several misconducts in Houwing actions. According to official statement, Mr. Houwing failed to act in the best interests of his clients by recommending that they allow their self-managed superannuation funds (SMSF) to lend money to his related entities. He also arranged loans from clients for his own use, and in some cases, benefited when he failed to repay the loans on time. Houwing had a conflict of interest as both a financial adviser and the recipient of the loans and failed to prioritise the interests of his clients over his own interests. He is not considered to be an adequately trained or competent to provide financial services and is not of good fame or character.

ASIC Commissioner, Danielle Press has commented, “The failure of financial advisers to act in the best of interests of their clients or to prioritise their clients’ interests over their own, not only harms their clients but also erodes public trust in the financial system. ASIC expects financial advisers to uphold the values of integrity and professionalism.”

The cancellation of Financial Options’ AFS licence follows the suspension of the licence on 26 August 2019, following concerns that Financial Options was not meeting its obligations as an AFS licensee. 

In cancelling the AFS licence, ASIC found that Financial Options had not complied with its financial requirements and had not done all things necessary to address ASIC’s concerns in relation to organisational competence, human resources and compliance requirements.

Mr Houwing’s banning will be recorded on ASIC’s publicly available Financial Advisers Register and the Banned and Disqualified Persons Register.

Mr Houwing and Financial Options have the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.

CySEC has warned against Calibur and IcFxMarkets brokers

Regulator CySEC

The Cyprus Securities and Exchange Commission issued a warning with regard to Calibur and IcFxMarkets. According to the official statement, these websites do not belong to an entity which has been granted an authorization for the provision of investment services and/or the performance of investment activities. 

The Cyprus Securities and Exchange Commission, known as CySEC (www.cysec.gov.cy), is the financial regulatory agency of Cyprus. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC.  

Are these brokers legit?

Calibur is a Forex broker, owned and operated by Calibur Capital Markets (TCM) Limited and claims to be regulated by the CySEC and FSCA in South Africa. The broker’s website mentions the benefits that CySEC regulated firms get, including the Compensation Fund, which definitely makes beginner traders believe the broker is reliable and safe to invest with. However, all these regulatory claims turned out to be false, since Calibur has been using the details and license number of another CySEC-regulated company. We consider Calibur to be one of the clone firms that should be avoided by traders and investors. You can read our full Calibur review here. 

IcFxMarkets offers an extensive range of assets, including Forex, CFDs and Cryptocurrency. The broker is a brand owned and operated by Holiway Investments Ltd. Also, IcFxMarkets claims to be a fully regulated Investment Firm, but it does not provide any specific information about the regulator or license, which makes us think the claim is false and just as Calibur, IcFxMarkets has been trying to get its clients trust. There is as well no contact or location information provided by the broker, which is unacceptable for the regulated brokers as this information should always remain transparent. 

When engaging with brokers that do not operate on the grounds of a valid license, issued from a trustworthy authority, traders are putting their investments at higher risk. It is better to avoid dealing with offshore brokerages and choose properly regulated and reliable brokers. A good example of such are the ones supervised by the FCA or CySEC. 

You can also share your trading experience with Calibur and IcFxMarkets by commenting on this post.

Austria’s FMA has warned against Swissinv24 and FX NextGen

The Austrian Financial Market Authority (FMA) warns the public against the activities of two forex brokers Swissinv24 and FX NextGen. These companies have been offering investments without complying with Austrian financial legislation. According to the official statements, these brokers are not entitled to carry out banking transactions in Austria that require a licence.

The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.

Are these brokers legit?

Swissinv24 is a Forex broker, owned and operated by Swissinv24 Ltd, registered in the Marshall Islands. The Marshall Islands is notorious for its practically absent requirements and regulations. Due to the setup cost is low and it does not regulate forex trading. The broker has also been blacklisted by several regulators, including FINMA and CONSOB. You can read our full Swissinv24 review here. 

FX NextGen broker is operated by FX NextGen Ltd and claims to be located in Kutaisi, Georgia. However, there are also mentions of such offshore licenses as Vanuatu and Belize. We have a detailed article explaining the risk of trading with brokers from Vanuatu. As it is not very safe to invest with offshore-registered companies, we advise traders to stay away from FX NextGen. 

When choosing a new Forex broker, it is very important to verify that they are in fact licensed for investors from your country of residence. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in the United Kingdom and ASIC in Australia.

You can share your trading experience with Swissinv24 and FX NextGen by commenting on this post.

New Zealand’s FMA warns against SL Markets and Vowfx brokers

The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, have issued warnings against SL Markets and Vowfx brokers. The regulator states the companies are not registered, licensed, or regulated in New Zealand and are not registered on the FSPR. 

The Financial Markets Authority (FMA) plays a critical role in regulating capital markets and financial services in New Zealand. It is the New Zealand government agency responsible for enforcing securities, financial reporting, and company law as they apply to financial services and securities markets.

Are there brokers legit?

SL Markets is a forex and CFD broker that provides trading solutions for worldwide investors. The company was founded in 2014 and claims to be headquartered in Nicosia, Cyprus. SL MARKETS has representative offices in Sydney, London, Hong Kong, Shanghai, Korea and Malaysia. However, the main concern is a lack of regulation, since the broker is not authorized in any of these countries. 

Also, according to the regulators notice, SL Markets is using National Cloud Service Co Limited’s financial service provider registration details on their website and claims its operations are regulated by the Financial Regulatory Authority of New Zealand. SL Markets is not associated with the New Zealand incorporated company National Cloud Service Co Limited. There is also no regulatory body in New Zealand known as the Financial Regulatory Authority of New Zealand.  

Vowfx provides a stable foreign exchange trading platform and connects to the foreign exchange trading market. The broker does not disclose any contact details or information about its location. The main language supported on the website is Chinese, that apparently the region Vowfx has been targeting. Also, the company claims to be regulated in Australia. but there is no information about it in the regulator’s register. 

In its warning, the FMA state that Vowfx could be involved in a scam and that its website contains false claims about FMA regulation.

You can share your SL Markets and Vowfx experience with us by commenting on this post.  

We always advise traders to avoid dealing with unregulated offshore-based forex brokers, as most of them are involved in investment scams. There are a number of properly Regulated Brokers to choose from on our website.

Italy’s regulator CONSOB warns against FTE FX and RMT500

Italy’s financial markets and services provider regulator CONSOB has updated its list of forex brokers who are not licensed to operate in Italy. FTE FX and RMT500 are happened to get into the list. These firms have been offering investment services and activities to the Italian public without being authorized in the country.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the Italian governmental authority responsible for regulating the Italian securities market. The regulator is also responsible for the Italian stock exchange, the Borsa Italiana.

Are these brokers legit?

FTE FX is a Forex and CFDs broker, owned and operated by Ace Capital Ltd. The company is registered in the St. Vincent and the Grenadines and is not considered to be reliable due to its offshore location. Traders who invest with the offshore brokers like FTE FX have no guarantee of the segregation of accounts. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines. You can read our full FTE FX review here.

RMT500 is an international brokerage company, owned and operated by RMT 500 Ltd. According to the terms and conditions, RMT500  operates within the European Economic Area. However, we haven’t found any regulatory information that proves this statement. The broker doesn’t seem to be licensed by any regulator. False regulation information or the actual lack of this information are the first signs of a suspicious unreliable broker. 

Generally, we always advise traders to avoid dealing with unregulated offshore forex brokers, as they may be involved in investment scams. There are a number of properly Regulated Brokers to choose from on our website.

You can share your FTE FX and RMT500 experience with us by commenting on this post. 

Spanish CNMV warns of WiseFunds and Just Perfect Markets

Spain’s financial markets and services regulator CNMV has issued warnings against two forex brokers WiseFunds and Just Perfect Markets. According to the public warning notices, these entities are not authorized to provide investment services or investment advice and auxiliary services, including foreign currency transactions in Spain.

The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry, and Competitiveness. The regulator maintains a register with investment companies that are authorized to operate in Spain.

Are these brokers legit? 

WiseFunds is a broker that offers Crypto, CFDs and Forex trading. The broker doesn’t disclose the company behind the brand’s name as well as its regulatory information. The terms and conditions on the website state that WiseFunds is under the jurisdiction of Bulgarian and UK Governing laws. There is also no information about the broker’s location or contact details. The map in the “Contact us” section shows London as a location, so we assume that’s where the company’s office is supposed to be. However, WiseFunds is NOT listed as a regulated entity in any of the regulatory registers. 

Just Perfect Markets offers Forex, commodities, indexes, CFDs and leveraged financial instruments. It is owned and operated by Just Perfect Markets Limited and incorporated in St. Vincent & the Grenadines as a Business Company. St. Vincent and the Grenadines is notorious for its practically absent requirements and regulations. Due to the setup cost is low and it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as 4xincome, Monfex and more. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.

Generally, we always advise traders to avoid dealing with unregulated offshore forex brokers, as they may be involved in investment scams. There are a number of properly Regulated Brokers to choose from on our website.

You can share your WiseFunds and Just Perfect Markets experience with us by commenting on this post.  

FMA of Austria warned against Prestige Financial Markets and FX Crypto Club

The Austrian Financial Market Authority (FMA) warns the public against the activities of two forex brokers Prestige Financial Markets and FX Crypto Club. These companies have been offering investments without complying with Austrian financial legislation. According to the official statements, these brokers are not entitled to carry out banking transactions in Austria that require a licence.

The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.

You might also like forex trading for beginners.

Are these brokers legit?

FX Crypto Club is owned and operated by CapCorp Ltd, incorporated in the Marshall Islands. The Marshall Islands is notorious for its practically absent requirements and regulations. Due to the setup cost is low and it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as GoldmanCFD, Obsbit and more. 

Prestige Financial Markets claims to be a leading and regulated broker in the trading industry. However, we have some doubts about its regulation. The company is owned by AllProTech OÜ. AllProTech OÜ operates some other brokers that we have previously reviewed (AlphaCapital, 10Brokers and Prestige.FM) and has been blacklisted by several regulators in Europe. Obviously, all the brokers associated with the AllProTech OÜ should be avoided. 

We advise all investors and traders to avoid unregulated offshore brokers. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as eToro and FXTM.

You can share your trading experience with Prestige Financial Markets and FX Crypto Club by commenting on this post.

Traderzmarket and GCE Capitals blacklisted by the FCA

The UK’s Financial Conduct Authority (FCA) has issued warnings against Traderzmarket and GCE Capitals. The regulator said the brokers have been providing financial services and products targeting people in the UK without being licensed.

The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom.

Are these brokers legit?

Traderzmarket is a Forex broker, owned and operated by Investment Company Activity LTD., registered in Bulgaria. The company also claims to operate from the office in Switzerland, however, they provide a British contact number on the website next to the address. Traderzmarket is not authorized in any of the mentioned countries and, moreover, has been blacklisted in by  the Swiss FINMA and Italian CONSOB.

GCE Capitals is an online trading platform that offers Cryptocurrency and Forex Trading. The company claims to have offices in London and Zurich, however, they do not disclose any legal information about the broker’s license. Apparently, GCE Capitals is not licensed and should be avoided. 

It is recommended to trade with authorized and regulated brokers. There are many trading companies that offer relatively good trading deals and conditions. These companies are regulated by such financial regulators like ASIC, CySEC, and FCA.

You can also share your trading experience with Traderzmarket and GCE Capitals by commenting on this post.