CNMV Warns against Seven Unregistered Brokers

The Comision Nacional del Mercado de Valores (CNMV), the regulatory body of Spain, has added seven additional brokers to its warning list. The increase in statements released against unauthorized Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term companies comes as no surprise, as the CNMV previously announced the upping of measures in its battle against firms running scam operations.

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The companies that have now joined the CNMV’s growing ban list since March include TorOption, ARC Global Trader S.L., Tradev LTD, 53 Capital Trade Limited, DGX Systems LTD (also known as Prime FX Bank), DGX System LTD, and First Investments Capital Markets. Some of these brokerages have already been added to similar lists in other countries.

TorOption, which is operated by Smart Choice Zone LP, was added to the warning list in Manitoba, Canada, by the Manitoba Securities Commission (MSC) in late April. The same action was repeated by the British Columbia Securities Commission (BCSC) earlier this month. The CNMV took similar measures against two brokerages by the names of MT4Invest and OEXgroup back in April. These entities have been the subject of warnings in other countries across Europe too.

The CNMV recently announced its having set new regulatory rules in order to protect customers, regarding trading costs, risks disclosure, leverage and advertising requirements. These guidelines concern online trading companies involved in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, binary options, and contracts for difference (CFDs).

In essence, the Spanish regulator requires firms to have full transparency with their clients regarding the actual costs and risks involved with their platforms.