Spain’s CNMV warns against a forex broker KayaFX

March 21, 2019 at 05:55 PM

Spain’s financial markets regulator, CNMV, has warned of Forex broker KayaFX. According to the official notice on CNMV’s website, this entity is not registered in the corresponding registry of the commission and, therefore, are not authorized to provide investment services.

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.

KayaFX is an offshore Forex and CFD broker. The company is owned and operated by AlphaTec LTD, Leeds, England. According to the terms and conditions, there is also another company behind the brand’s name, Hermes Solution DOO, based in Montenegro and responsible for the clearing and billing services. However, none of the mentioned companies aren’t regulated to provide financial services.

The broker has previously been blacklisted by the UK’s regulator Financial Conduct Authority for targeting UK residents without being authorized in the country.

We have also found a lot of negative reviews from the traders. Some of them cannot withdraw their funds and profits, others haven’t heard from broker since their first deposit. It seems that KayaFX is just one more unregulated company trying to deceive customers.

Generally, we always advise traders to avoid dealing with unregulated 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 read our review on this broker here.