FINMA warns against forex brokers SwissCapital and Trader Bank

September 8, 2019 at 10:00 PM

The Switzerland financial markets and service providers regulator FINMA has warned of unregulated forex brokers SwissCapital and Trader Bank. According to the official notices, these entities may be carrying out unauthorized services and are not supervised by FINMA.

The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government institution responsible for financial regulation. The regulator supervises the banks, insurance companies, stock exchanges, and securities dealers, as well as other financial intermediaries in Switzerland. FINMA keeps a close eye on the unregulated brokers and usually warns in a timely manner of those who make false claims of Swiss regulation or location but are not Swiss-regulated.

SwissCapital is a Forex broker, operated and administered by Promfix OU. The company claims to be located in Tallinn, Estonia. However, the registration number is not listed in the regulator’s register. It only proves SwissCapital is not authorized by the Estonian Financial Supervision Authority and it may be quite risky to deal with this firm.

As to the Forex and CFDs broker Trader Bank, it is owned and operated by 21 Tech Ltd with a registered address in Sofia, Bulgaria. The broker doesn’t provide any information about its regulation or operational address, which should be a red flag for the traders. Trader Bank is not regulated or licensed by any financial regulator.

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 unregulated brokerages and choose properly regulated and reliable brokers.

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