Spain’s regulator warns against UCI and Aspen Holding

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 logo

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.

ASIC suspends the AFS licence of Financial Options Pty Ltd

ASIC logo

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

AFS licensees may be breaking overseas laws

ASIC logo

ASIC has warned Australian financial services licensees that offer over-the-counter derivatives to retail investors located overseas could be breaking laws abroad, with Chinese authorities having alerted the watchdog that some online platforms have engaged in illegal activity.

Many jurisdictions (such as Europe, Japan, North America and China) had restricted or prohibited the provision to retail investors of certain OTC derivatives. These included binary options, margin foreign exchange and other contracts for difference (CFDs) to mitigate harm to retail investors.

AFS licensees are on notice that in addition to overseas consequences of potential breaches of overseas law. ASIC will also consider whether AFS licensee are making misleading or deceptive statements about the scope or application or effect of an AFS licence.

According to our source, Rakuten Securities Australia has informed its oversea (non-Australian) clients to close their accounts by the 17th of May.

In particular, Chinese authorities have informed ASIC that: ‘some online platforms are illegally engaged in forex margin trading activities.’ AFS licensees with China-based clients may be conducting unlicensed or illegal activities in China if they are providing margin foreign exchange products to retail clients in China.

Temporary product intervention measures have recently been extended in Europe by the European Securities and Markets Authority (ESMA). Authorities in the United Kingdom and Germany have announced permanent measures.

ASIC is concerned that some OTC derivative issuers that hold AFS licenses (or their agents) may be marketing or soliciting clients located in China, Europe and other jurisdictions to open accounts with Australian-based AFS licensees on the basis doing so will avoid the overseas intervention measures.

The US Dollar Remains Bullish Amid Fed’s Tightening Expectations

The US Dollar Remains Bullish Amid Fed's Tightening Expectations

Traders rebought the US dollar as sentiment has deteriorated notably, pushing safe-haven assets such as the USD or US bonds higher.

Earlier on Monday, the US Manufacturing PMI dropped from 57.7 to 55.0 (worse than the expected  56.8) while the Services survey utterly collapsed from 57.6 to 50.9 (hugely worse than the expected  55.0). Those were the lowest services number since July 2020 and the weakest Manufacturing survey since October 2020, dragging the US Composite PMI down to July 2020 lows from 57.0 in December to 50.8.

Commenting on the PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said: "Soaring virus cases have brought the US economy to a near standstill at the start of the year, with businesses disrupted by worsening supply chain delays and staff shortages, with new restrictions to control the spread of Omicron adding to firms' headwinds."

The US economy seems to be slowing at a fast pace, right into this year's monetary policy tightening.

Hawkish Fed?

Still, the main focus for this week will be on Wednesday's Federal Open Market Committee (FOMC) decision. While market participants do not expect any changes to monetary policy, the Fed should formally hint at the first rate hike in March. 

Moreover, investors will pay close attention to the comments regarding the balance sheet run-off as several FOMC participants have recently noted they would want to start reducing the balance sheet right after the first rate hike (thus, in March). 

However, considering the recent rout in stocks, the Fed might choose a cautious way of communication - the balance sheet reduction could be postponed for a couple of months, possibly supporting risk assets with such a dovish tilt. We shall see.

Technically speaking, the EURUSD is hanging right at the short-term uptrend line, where the 50-day moving average (the purple line) also stands. This formation looks like a consolidation flag pattern, usually leading to a continuation of the primary trend, which in this case is bearish. Should the euro drop below 1.13, we might see a quick decline toward the current cycle lows near 1.12, with a possible breakdown toward 1.10.

Alternatively, if the situation improves, the euro might continue higher to 1.1360, with the main resistance at this month's highs at 1.1480.

Top Brokers with Lightning-Fast Execution for Gold Trading

In the world of gold trading, speed can be the ultimate game-changer, and choosing a broker with swift order execution can significantly impact traders' success. After an exhaustive evaluation of the leading brokers in the industry, BlackBull Markets has emerged as the standout performer, offering unparalleled execution speed for gold trades, making it the preferred choice for traders seeking efficiency in this precious metal market.

The Importance of Order Execution in Gold Trading

In the realm of the gold market, swift price fluctuations are the norm, and executing trades at the right moment can determine the line between profitable trades and missed chances. Whether traders are employing scalping strategies or depending on automated systems, quick order execution guarantees the ability to enter and exit gold positions swiftly. This approach diminishes the possibility of slippage and optimizes the potential for profits.

Findings from Gold Trading Execution Speed Testing

Through a comprehensive examination of brokers specializing in gold trading, we assessed the speed of executing market orders. Our objective was to pinpoint the broker consistently offering the swiftest execution, thereby granting traders a notable advantage in the gold market. Following meticulous testing, BlackBull Markets emerged as the unequivocal leader, showcasing a remarkable average execution speed for gold market orders that surpassed all competitors. Its steadfast dedication to rapid execution positions it as a leading choice for traders in search of a dependable ally in the realm of gold trading.

Here's a glimpse of the average execution speeds for gold market orders among the brokers tested:

  • BlackBull Markets: 20.587 milliseconds
  • XM: 35.488 milliseconds
  • FXPro: 47.653 milliseconds
  • Admiral Markets: 85.559 milliseconds
  • Easy Markets: 104.461 milliseconds
  • Fusion Markets: 92.166 milliseconds
  • FP markets: 87.665 milliseconds
  • Pepperstone: 30.698 milliseconds
  • Eightcap: 276.66 milliseconds
  • IC Markets: 356.69 milliseconds

Testing Methodology for Gold Trading Execution Speed

To ensure the accuracy and relevance of our findings, our testing focused on the popular gold trading pair XAU/USD. We executed a total of ten buy and ten sell orders for 1 lot each of XAU/USD at regular intervals throughout a typical trading day.

By simulating real-time trading conditions, our methodology captured the brokers' execution speeds accurately. Utilizing standardized order sizes and a common gold trading pair created a level playing field for all brokers tested.

Throughout the testing period, we recorded the time taken for each gold order to be executed, measuring the order execution time from submission to confirmation. This data allowed us to calculate the average execution speed for each broker.

Conclusion

In the competitive world of gold trading, BlackBull Markets shines as a top choice for traders seeking lightning-fast execution, followed by Pepperstone and XM. With its industry-leading execution speeds, traders can seize time-sensitive opportunities and optimize their gold trading strategies with minimal slippage.

The UK’s FCA warns against WorldFXM

FCA Regulator

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 logo

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 CNMV warns of unregulated forex broker Swiss Markets

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. Swiss Markets logo 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.

Belgium FSMA warns against Capital Pilots and Marketcapital brokers

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. 

Capital Pilots logo

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.  

CySEC withdraws GS Sharestocks Ltd’s CIF license

Regulator CySEC

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.

GS Sharestocks LTD logo

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.