Category: Regulation

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.  

Spain’s financial markets and services regulator CNMV has issued warnings against two forex brokers UCI and Aspen Holding. 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?

UCI is an online investment company that aims in providing transparent and quality trading services around the world to cater different clients around the globe. The company claims to be located in Australia, however, they do not provide any information about the regulation or its specific location. Also, UCI seems to be targeting Spanish and German residents, without having any legal right for that.

Aspen Holding is a Forex broker, that also doesn't provide any information about its regulation or the company behind the brand's name. The broker claims to have branches in Russia and Malaysia, however, it is not licensed to provide financial services. According to the terms and conditions, the company is actually under the jurisdiction of Bulgaria, but there are also no proofs of this statement on the Bulgarian regulator website. 

Generally, we always advise traders to avoid dealing with unregulated 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 UCI and Aspen Holding experience with us by commenting on this post.

On Tuesday, the Australian Securities and Investments Commission (ASIC) has issued a notice regarding the suspension of the Australian financial services (AFS) licence of Queensland-based financial services provider Financial Options Pty Ltd (Financial Options) until 26 February 2020. Financial Options has held AFS licence no. 246287 since 1 March 2004. 

The main reason for the suspension was the regulator's concern that Financial Options was not able to meet all the requirements and obligations of the AFS license. 

In the official notice, the regulator states: “Financial Options did not lodge its accounts and audit report for the year ending 30 June 2018, failed to have a dispute resolution system in place, and did not maintain organisational competence or the resources required to provide the financial services covered by its licence”.

Also, the regulator was concerned that the company applied for an  Australian Financial Complaints Authority (AFCA) scheme, only after receiving a notice of hearing. The membership for the scheme was applied on May 31, 2019.

During the suspension period, the company will work on lodging of its financial reports and other important thing such as organisational competence, human resources and compliance requirements. If Financial Options won't be able to comply with the requirements during the given suspension period, ASIC will consider cancelling the licence.

The suspension of Financial Option’s AFS licence is part of ASIC’s ongoing efforts to improve standards across the financial services industry.

We recommend dealing only with the well-regulated companies, including Forex brokers regulated by ASIC. 

The Financial Conduct Authority (FCA), the UK financial regulator, has issued a warning about WorldFXM, an online entity claiming to provide forex trading. The broker has been providing its financial services to UK customers without being authorized in the country.

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.

WorldFXM is a Forex and CFDs broker that operates through the website www.worldfxm.com. The platform is owned by a Marshall Islands-based company called CHO DEVELOPMENT LTD.  The Marshall Islands is an offshore destination where usually brokerage services are not regulated. The biggest concern is that there is no information about the legal entity behind WorldFXM.

All legitimate firms provide an actual company with a place of registration and which is registered with a trusted financial regulator. Doing business with offshore brokers is extremely risky and it is highly recommended to avoid such companies and to select among brokers licensed by the respective authorities in the UK, or Australia for example.

Another problem with the WorldFXM is that the company was not only banned in the UK, but also in Austria by FMA and in Italy by CONSOB. As regulators issue warning for valid and serious reasons, we suggest traders avoid the mentioned broker.

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 read our review on this broker here.

Spain’s financial regulator CNMV has issued a warning against an unregulated forex broker Swiss Markets. According to the CNMV, this brokerage is not authorized to provide financial or auxiliary services 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 broker operates on the website global.swissmarkets.com and offers Forex and CFD trading. There are two companies behind this brand. BDS LTD is an International Business Company that operates Swiss Markets, based in Seychelles, which means it is an offshore entity and there is a high risk for the customers when dealing with this firm. The second company is BDS Markets. It is based in Mauritius and authorized and regulated by the Mauritius Financial Services Commission. The website also mentions different contact numbers in different countries (United Kingdom, Germany, and Spain), and probably the company has been targeting residents of these countries. Although, the company is not licensed in any of those countries, and there is no regulatory body that monitors its activity to ensure it sticks to best practices. There are a few mentions found on the net about Swiss Markets being regulated by CySEC, but no records about this company in CySEC Register. 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.

The Financial Services and Markets Authority (FSMA) warns the public against the activities of Capital Pilots and Marketcapital who are unlawfully offering forex products and/or CFD’s on the Belgian market. The regulator has added that any company wishing to offer investment products must hold an authorization.

The Financial Services and Markets Authority (FSMA) is the financial regulatory agency in Belgium. As a supervisory authority, the FSMA strives to ensure the honest and equitable treatment of financial consumers. It aims at the fair and orderly operation and the transparency of the financial markets by ensuring that listed companies provide correct and complete information.

Are these brokers legit? 

Capital Pilots is a Forex and CFDs broker operated by MTC GROUP LTD and registered in the Marshall Islands. Those brokers registered offshore are not considered as reliable ones, because they are basically are not overseen by any authority. The broker doesn't disclose any information about its location, regulation or contact details. We always consider it as one of the red flags. Reliable and regulated companies keep this kind of information transparent. 

Marketcapital claims to be an industry leader in the Forex and CFD Markets. The company is owned and operated by Macro Projects Ltd., registered in the St. Vincent and the Grenadines. Marketcapital only provides the contact phone number, which turned out to have a British country code. However, the broker is definitely not regulated in the UK. 

Generally, we always advise traders to avoid dealing with offshore forex brokers, as most of them are involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the FCA or the Australian Securities and Investment Commission. 

You can also share your Capital Pilots and Marketcapital experience with us by commenting on this post.  

The Cyprus Securities and Exchange Commission has announced that, on its meeting of 4th March 2019, has decided, pursuant of the Investment Services and Activities and Regulated Markets Law of 2017, to withdraw the Cyprus Investment Firm authorisation of GS Sharestocks Ltd., due to the Company’s decision to expressly renounce it.

GS Sharestocks LTD. operates an online shares trading platform. It enables users to buy and sell stocks, follow other investors, and get access to stock markets worldwide; and create and run a community of subscribers to their portfolio. The company also provides live market data, latest stock news, and social feeds. GS Sharestocks LTD. is headquartered in Limassol, Cyprus.

The Cyprus Securities and Exchange Commission, better known as CySEC, is the financial regulatory agency of Cyprus. It supervises and controls the operation of the Cyprus Stock Exchange, grants operation licenses to investment firms, including investment consultants, brokerage firms, and brokers, impose administrative sanctions and disciplinary penalties. You can read the detailed article about the Cyprus Securities and Exchange Commission here.

The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, have issued warnings against Selected Markets and GG Trade 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.

Selected Markets claims to be a leading FOREX trading company. It is owned and operated by Halsted Holdings Ltd, a company incorporated in St. Vincent and the Grenadines. We keep reminding that offshore zones are famous for their loose legal regimes, tax-free and low-cost licenses. They are basically not licensed, nor supervised by any authority. 

Also, according to the regulators notice, Selected Markets could be involved in a scam. Australian Securities and Investments Commission has advised on their website that this company could be involved in a scam and is unlicensed in Australia.

GG Trade is a broker that offers Forex and crypto currency trading. The company is owned and operated by GGtrade international Ltd. This is pretty much all the information about the broker provided on its website. There is no contact or location details. Also, the link to its regulatory information doesn't work, because it actually doesn't exist. 

In its warning, the FMA recommends exercising caution before dealing with GG Trade International Ltd, Jinshi Global Financial Group, Boulder Wealth GG Trade and their website www.ggtrade.vn. The website claims to be a New Zealand FSP alongside a statement ‘veteran global financial service provider’. The entity is not registered on the Financial Service Providers Register in New Zealand.

You can share your Selected Markets and GG Trade 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 financial markets and service providers regulator CONSOB has issued a warning against a forex broker that is operating in violation of Italian law. The company is not regulated by any financial watchdog. In fact, it is registered in offshore zone, which suggests it might actually be a scam.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the government authority of Italy responsible for regulating the Italian securities market. This includes the regulation of the Italian stock exchange, the Borsa Italiana.

Tradeu2 is a Forex broker that operates through the website www.tradeu2.com and offers currencies, precious metals, commodities, CFDs and Futures trading options. The brokerage is owned and managed by the Sun Capital Limited, a St. Vincent and the Grenadines-based company. This is a jurisdiction where Forex license is not required. Moreover, local authority doesn't issue forex licenses, which mean that the broker is most probably a fraud.

Tradeu2 doesn't provide any contact information or any details about it's location. The terms and conditions on the website state that the company is under the jurisdiction of Cypres, however, the broker does not claim to be regulated by any governmental agency and it obviously isn’t.

As to the Sun Capital Limited, the company has been banned multiple times by different regulators including Swiss Financial Market Supervisory Authority warning and Autrian Financial Market Authority warning. Obviously, the company that has this kind of reputation cannot be trusted and we cannot recommend Tradeu2 (Sun Capital Limited) as a reliable investment entity.

It is better to choose among brokers licensed by the respective authorities in the UK, or Australia for example. For instance, a broker registered with the UK’s FCA can’t simply take investor’s money and disappear. They follow multiple reporting procedures and have to keep client funds segregated from the company’s.

You can read our review on this broker here.