ADGM FSRA fined AT Capital Markets Limited and suspended its license

Posted on by bar
Abu Dhabi Global Market logo

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market has taken regulatory action against and imposed fines of $320,000 on AT Capital Markets Limited (ATCM) and $40,000 on its Senior Executive Officer (SEO), Mr Ryan Tsui.

The regulator has taken an investigation of the ATCM’s activities. The FSRA found that ATCM had operated in breach of FSRA requirements by conducting Regulated Activities prior to the grant of its Financial Services Permission, and by dealing with Retail Clients when it was prohibited from doing so. In light of this conduct, the FSRA also found failures in ATCM’s internal governance, systems and controls, client classification and anti-money laundering processes.

“Further, the FSRA’s investigation found that ATCM had provided false and misleading information to the FSRA concerning the nature and scope of its activities, and that ATCM failed to notify the FSRA of alleged misconduct by certain of its employees.”

As to the Mr Tsui, the SEO and the responsible one for the day-to-day management of ATCM, he was actively involved in the unauthorised activities and provided misleading and false information to the agency. In addition, he failed to take reasonable steps to ensure that ATCM complied with regulatory requirements.

ATCM and Mr Tsui each agreed to settle the matter following conclusion of the FSRA’s investigation. Fines have been imposed by way of agreed Final Notices.

In addition, the FSRA has suspended the licence of ATCM. Mr Tsui has agreed to withdraw from his roles as the SEO and as a Licensed Director of ATCM.

You may check our list of the UAE-Regulated Brokers.

EURUSD Revisits July 2020 Levels Dropping Below 1.14

Posted on by bar

The greenback continued to outperform the euro on Monday, pushing the most-traded pair in the world, the EURUSD, below the 1.14 level for the first time since July 2020.

EURUSD Levels Dropping

Earlier on Monday, European Centra Bank (ECB) Governor Cristine Lagarde undermined the euro when she repeated that conditions for a rate hike are very unlikely to be met in 2022. Furthermore, she said that any tightening measure now would cause more harm than good.

On the other hand, the market now expects the Federal Reserve (Fed) to hike rates nearly three times in 2022, with the first-rate hike priced in at July’s meeting. Inflation expectations continue to soar in the US, pushing bond prices down and yields higher.

At the time of writing, the two-year yield stands at 0.5%, unmoved on the day, while the 10-year yield rose above 1.6%, steepening the yield curve. 

Chatter is growing among market participants that the Fed will need to accelerate the pace of Quantitative Easing tapering in Q1 2022 and bring on rate hikes as inflation shows no signs of stopping.

Therefore, the significant divergence in monetary policies – the Fed tightening and the ECB not doing anything – should keep the EURUSD pair pressured in the long-term.

“The uptrend [in the USD] that has been in place since June remains in place, and we expect the USD to remain on the front foot as we advance into 2022. We expect the cautiousness of the ECB on policy to limit recovery prospects for the EUR vs. USD in the coming months.” Analysts at Rabobank said Monday.

Technically speaking, the euro has dropped below the supporting line, killing all the stop losses of long positions below it. Therefore, the resistance now stands at the broken trend line, at around 1.1430. As long as the euro trades below it, the short-term outlook remains bearish. Additionally, as long as the pair trades below 1.1520, the medium-term trend also seems bearish. As a result, rallies are expected to be sold.  

The next target in this bearish wave is expected at the psychological threshold of 1.10 – the lowest level since May 2020.

What’s Next for Gold and Silver?

Posted on by bar
silver and gold rates

Both silver and gold are trying to find a direction after the recent consolidation. Usually, precious metals are affected by two things – US (real) yields and the US dollar. 

Advancing Yields

US yields continue to rise sharply, with the 10-year yields jumping above 1.8% for the first time since January 2020, posting new cycle highs. At the same time, 2-year yields advanced above the psychological 1% threshold for the first time since February 2020. 

Traders continue to price in more and more rate hikes in 2022. Currently, four rate hikes are expected this year, with the first one likely happening at the Federal Reserve’s (Fed) March meeting. Additionally, JPMorgan Chief Executive Officer Jamie Dimon said on Friday that the central bank could raise rates as many as seven times. That would undoubtedly be a hawkish surprise. 

At the same time, US real yields are spiking higher, with the 30-year real yield trying to get back from negative territory. That could be a confirmation signal that the Fed will slow inflation over the following months. On the other hand, the short to medium real yields remain below zero, but the trend is clear – they are rising. 

Soaring nominal and especially real yields are normally a bearish impetus for gold and silver. 

A Struggling USD

However, the Forex market is not so bullish on the USD as the dollar index has recently dropped below the long-term uptrend line from last year's lows, possibly ending the long-term bull market, unless the trendline (95.30) is reclaimed. Should the USD fall further, precious metals could be supported. 

It looks like the EURUSD pair has bottomed below 1.13, and we might see a rally toward 1.1520. If the euro climbs above that level, the medium-term trend in the EURUSD pair could change to bullish, weakening the USD and possibly sending the metals higher. 

The daily chart of gold is not that bullish right now, although if the price jumps above the resistance of 1,830 USD, we could see a rally toward November highs in the 1,865 USD region, with another target at 1,900 USD.

Silver's daily chart is looking much worse as the metal trades near its 18-month lows at 21.50 USD, with the actual price at around 23 USD. Silver must climb above 23.50 USD to cancel the immediate short-term bias, with the key resistance spotted at the 200-day moving average below 25 USD (the green line). A breakout above that level could offer further demand, possibly leading to a rally above the critical level of 25 USD.

Plus500 Boosts Its Presence in MENA with the Obtainment of the DFSA License.

Posted on by Adam Smith
Plus500 website
Plus500

Plus500, a leading online trading platform, has announced that it has received a license from the Dubai Financial Services Authority (DFSA), allowing the company to offer its services to customers in the United Arab Emirates.

  • This marks a major milestone for Plus500, as the DFSA is one of the most stringent regulatory bodies in the world, known for its strict standards and rigorous oversight. Obtaining a license from the DFSA demonstrates Plus500's commitment to transparency and customer protection, as well as its ability to meet the highest standards of financial regulation.
  • The DFSA license will allow Plus500 to offer its services, including forex, CFDs, and commodities trading, to customers in the UAE. With a growing number of retail investors in the region, the new license is expected to significantly increase Plus500's customer base and help the company establish a strong presence in the Middle East.

"We are very proud to have received this license from the DFSA, which is a testament to the quality of our platform and the dedication of our team," said David Zruia, CEO of Plus500. "We look forward to serving customers in the UAE and helping them achieve their trading goals."

In recent years, Plus500 has established itself as a leading provider of online trading services, offering a user-friendly platform and a range of educational resources to help customers make informed trading decisions. With the new DFSA license, the company is well-positioned to continue its growth and expand its reach in the Middle East.

The acquisition of the DFSA license is part of Plus500's ongoing efforts to meet the regulatory requirements of the markets it serves and to provide its customers with a secure and trustworthy platform for trading. Read Why Trade with Dubai DFSA Regulated Brokers.

About Plus500

Plus500 is a leading online trading platform that offers a range of financial instruments for trading, including forex, contracts for difference (CFDs), commodities, stocks, indices, and cryptocurrencies. The company was founded in 2008 and is headquartered in Israel.

Plus500 operates a user-friendly trading platform that is accessible to both novice and experienced traders. The platform offers a range of tools and resources to help traders make informed trading decisions, including charts, live market updates, and a range of educational materials.

In addition to its trading platform, Plus500 is known for its competitive fees and spreads, and for its fast and reliable order execution. The company is regulated by several leading financial regulators, including the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).

For more information about the broker read our Plus500 Review Article or visit their official website.

Ireland to ban binary options and restrict CFD trades permanently

Posted on by bar

The Central Bank of Ireland logo

The Central Bank has announced that it will ban the sale of binary options to retail investors and restrict the sale of contracts for difference (CFDs) to retail investors. This will be the first time that the Central Bank uses its product intervention powers introduced in 2018, which allow it to prohibit or restrict the sale of certain products. These interventions reflect the Central Banks’s significant concerns relating to the sale of CFDs and binary options to retail investors and will take effect immediately after the European Securities and Markets Authority (ESMA) intervention measures lapse.

The binary options measure will prohibit the marketing, distribution or sale of binary options to retail investors. The CFD measure will restrict the marketing, distribution or sale of CFDs to retail investors. This restriction consists of limits on leverage, a margin close requirement, a requirement that retail investors cannot lose more money than they put into their CFD account, a prohibition on the use of incentives by a CFD provider and a standardised risk warning.

On 27 March 2018, the Central Bank issued a warning to investors on CFDs and binary options. EU competent authorities had undertaken reviews over previous years, which revealed that between 74% and 87% of retail clients incurred losses when investing in binary options. On CFDs, a Central Bank inspection published in 2015 found that 75% of retail CFD clients made a loss, of which the average loss was €6,900. 

The Central Bank has worked closely with ESMA on this investor protection issue. In 2018 ESMA imposed temporary product intervention measures in relation to the sale of CFDs and binary options to retail investors, measures for which the Central Bank had advocated. Once these temporary measures expire, the Central Bank’s national product intervention measures will immediately take effect in order to ensure ongoing protection of retail investors.

German BaFIN warns against unregulated broker Britonprice

Posted on by bar

BaFin Regulator

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 logo

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.

FXOpen accesses ECN trading through MT5

Posted on by John Porter

FXOpen launches access to ECN trading through the latest version of MT5 and participating in growing demand with many new functions, yet with a familiar user interface.

While MT5 or MetaTrader5 is a new generation of the market leading and widely popular MT4 platform developed by the MetaQuotes company. Together with its known powerful capabilities MT5 allows multi-asset enhanced trading features for Forex, Stocks and Futures trading with numerous superior tools and of course great charting MetaTrader is famous of.

You may discover more about FXOpen MT5 by following the link.FXOpen access ECN trading through MT5

Moreover, UK broker FXOpen now executes orders through electronic forex exchange giving access to ECN or Electronic Communication Network and to interbank liquidity. This enhancement brings vast possibilities either to various strategies or for algorithmic trading, of course by using popular EAs MT5 is also known for. As mentioned by the company, the platform allows not only to carry out comprehensive market analysis but allows power of over 80 technical indicators.

Although professional MT5 environment providing FXOpen traders with all that they may need for successful trading, there are also choices between accounts FXOpen offers. As well as a possibility to join the social trading environment through leading ZuluTrade or Myfxbook, in reverse expanding investment possibilities for either beginners or professionals even further.

FXOpen Review

FXOpen as one of the respected UK financial firms, also respectively overseen and regulated by FCA became a brokerage company that satisfies the most demanding appetites of traders. Its growing development and continuous expanding of services bringing transparent trading conditions and possibilities for traders of different size or level. Nevertheless, you may see detailed information through FXOpen Review available by the link and get to know about their trading conditions for your trading consideration.

Financial Conduct Authority suspends AFX Markets Licence

Posted on by bar

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.

FCA warning note

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 CNMV blacklists Weltrade and TCO TRADE

Posted on by bar
CNMV logo

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 logo

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.