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.