Category: Regulation

Spain’s financial markets regulator, CNMV, has warned of Forex broker FXNobels. According to the official notice on CNMV’s website, this entity is not registered in the corresponding registry of the commission and, therefore, are not authorized to provide investment services.

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.

FXNobels specializes in Forex, Stocks and Cryptocurrencies trading and operates through the website www.fxnobels.com. The company doesn't disclose any information about the company behind the brand's name as well as its regulation, which makes us think FXNobels is not regulated at all. According to the website, the broker is located in Malta, however, there is a warning against this broker from the Maltese regulator Financial Services Authority, stating that FXNobels purports to operate from an address in Malta, the regulator confirms that this is not the case.

To add up, we have found numerous negative reviews from FXNobels customers on the net. People state that they cannot get their money back and the company refuses to provide any kind of help.

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 read our review on this broker here.

Hong Kong’s Securities and Futures Commission (SFC) has published a warning against the forex broker Xiaohangjia Brokers.  (SFC) of Hong Kong is the independent statutory body charged with regulating the securities and futures markets in Hong Kong. The SFC is responsible for fostering an orderly securities and futures markets, to protect investors and to help promote Hong Kong as an international financial center and a key financial market in China. According to the regulator, the owner of the brokerage Xiaohangjia Futures Limited, is falsely claiming to be located at an address in Hong Kong. Furthermore, SFC notes, unlicensed entities often use names similar to legitimate companies to confuse investors. The broker's website gives the regulatory information of the company and that it is licensed in Vanuatu with Vanuatu Financial Services Commission. They even provide the scanned copies of the license and certificate. Even though the broker is licensed in Vanuatu, it still has no rights to reach our people in China without having an SFC license. Also, it is better not to deal with the brokers who have offshore registrations as there is a chance the investor will not see it's money ever again. As a general rule, unregulated brokers or ones making false claims, are to be avoided, as often they are a scam. It is better to deal with reputable and properly regulated brokers, like the ones supervised by the FCA or ASIC. You can read our review on this broker here.

Italy’s financial markets and services provider regulator CONSOB (Commissione Nazionale per le Società e la Borsa) has updated its list of forex brokers who are not licensed to operate in Italy. Traderia and InstaFx24 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.

These two brokers have a lot in common. They both are registered offshore and both claim to be located in the UK. However there are no mentions about either of the companies in the FCA's register. And also both of them do not fall under the regulatory of any agency.

Are these brokers legit?

InstaFx24 is an offshore Forex broker registered in the Marshall Islands. The company holds the name of the well-known and regulated broker InstaForex, however, there is no actual connection between these two brands. In addition, InstaFx24 has been blacklisted in Austria and the UK by the local regulators. Before dealing with this broker, check our full InstaFx24 review. 

As to the Traderia, this offshore broker is registered in St. Vincent and the Grenadine and claims to be the leading Forex and CFDs broker. This broker has also gotten in the FCA's warning list in addition to the warning from the Spain's regulator CNMV. You can check our full Traderia review here. 

Investing with a properly regulated broker is crucial for the safety of any investment. You can choose among Swiss brokers regulated by FINMA or those authorized in the UK by its FCA.

Also, you can share your trading experience with Traderia and InstaFx24 by commenting on this post. 

UK’s Financial Conduct Authority (FCA) has published a warning against the forex and CFD broker Ostrich Capital. A broker has been targeting UK citizens, claiming to be authorized by FCA, while actually, it is not. 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. Ostrich Capital operates through the website www.ostrichcapital.com and provides Forex and CFD trading. The broker is owned by Venture Gravity LTD and based in London, United Kingdom. However, the broker is not authorized with the UK’s FCA. Without proper authorization, there is no way for regulators to protect investors from fraudulent activity, due to a lack of monitoring by any governing body to ensure that proper practices are being adhered to by the companies. Also, the clients of the company keep on leaving negative reviews on the web about aggressive and arrogant employees who refuse to release their money when clients request it. Overall, we don’t recommend this broker due to the lack of financial regulation. All brokers licensed by UK’s Financial Conduct Authority are under the umbrella of the Financial Services Compensation Scheme (FSCS), which can pay up to £50,000 per client. Unlike FCA-licensed brokers, unregulated ones are not obliged to keep their clients’ money in segregated accounts. You can read our review on this broker here.

The German Federal Financial Supervisory Authority - BaFin has ordered Britonprice to cease offering cross-border investment advice and proprietary trading to German investors. According to the official warning, the company has been offering German clients on its trading platform www.britonprice.com Financial Contracts for Difference ( CFD ) that are based on core values ​​such as currencies.

The Federal Financial Supervisory Authority (German: Bundesanstalt für Finanzdienstleistungsaufsicht) better known by its abbreviation BaFin is the financial regulatory authority for Germany. The main task of BaFin is the supervision of banks, insurance companies and the trading of securities and ensure the viability, integrity and stability of the German financial system. You can read a detailed article about the advantages of trading with BaFin regulated brokers.

Britonprice is a Forex and CFDs broker, owned and operated by Britonprice FinServices LTD, based in Sofia, Bulgaria. The terms and conditions on the company's website state that Britonprice is under the regulation of Cyprus jurisdiction. However, this information is false. The broker doesn't carry a license that allows to provide financial services in Bulgaria or Cyprus, or any other country.

The regulator's warning states that "the company commercially conducts proprietary trading. However, Britonprice does not have the permission of BaFin required under Sec. 32 (1) KWG. It is, therefore, illegal."

Considering all the above, we would not recommend you investing with Britonprice. Instead, we advise our readers to avoid dealing with unregulated entities and choose among the reliable and regulated ones. There is a number of properly licensed firms, such as UK brokers and German brokers. You can read our review on this broker here.

The FCA has announced its decision to suspend the financial services license of AFX Markets.

On its official website www.stofs.com, the company has mentioned that the Financial Conduct Authority has notified AFX Markets Ltd, FRN: 560872 that must close all open trading positions held by it, whether on its own account or on accounts of its clients by no later than 7 August 2019. Two other company's websites, ICEFX UK and Quantic Prime, are not accessible.

After the firm closes all its open positions of its clients it will become obligatory to hold all client money segregated for clients in accordance with the client money rules of FCA. 

A few weeks earlier, the CySEC has suspended the license of the company in Cyprus. Previously, the company has stated that suspension is on a temporary basis and will end in 10 days. However, they haven't confirmed the restart of the operations yet. According to the CySEC's website, the company's license remains suspended. 

Spain’s financial markets and services regulator CNMV has issued warnings against two forex brokers Weltrade and TCO TRADE. 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? 

Weltrade is a Forex broker. It is owned and operated by Systemgates Ltd. The company is registered in Saint Vincent and the Grenadines. Those brokers registered offshore are not considered as reliable ones, because they are basically are not overseen by any authority. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.

TCO TRADE is a global Forex brokerage and investment company that specializes in global financial markets. The company is operated by TCO Trades LTD. It claims to be located in London, UK. However, it is NOT regulated in the UK by its local regulator FCA. 

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 Weltrade and TCO Trade experience with us by commenting on this post.

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.