Spain’s regulator CNMV warns against 4xFX broker
Spain’s financial markets and services regulator CNMV has issued a warning against 4xFX. According to the public warning notice, 4xFX, operated by GRF EUROPE OÜ, is 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.
The broker 4xFX offers its clients trading with Indices, Commodities, Forex, Stocks and Cryptocurrencies. The firm is owned and operated by GRF EUROPE OÜ, based in Estonia. However, we didn’t find any records of the broker to be regulated by the local Estonian Financial Supervisory Authority or any other regulator.
Moreover, 4xFX was already blacklisted by several regulators, including Estonian Financial Supervisory Authority and Australian Securities and Investments Commission (ASIC). It should definitely be a red flag, as investing with the company that has gotten into warning lists of three regulators doesn’t put much hope.
The website supports English, German and Spanish languages, as well as provides contact numbers with British, German and Estonian phone codes. It usually means the broker has been targeting people from those countries and most of the times without being authorized.
In order to operate legally, investment firms need a license by the local relevant authorities or the authorities of any other EU member state. We strongly advise traders to select among brokerages authorized by reputable regulators, such as EU ones (FCA, CySEC) or Australia’s ASIC. You can read our review on this broker here.