Austrian Regulator Warns Against FX Broker Tradeinvest90

The Financial Markets Authority (FMA) of Austria has warned the country’s residents to exercise caution while dealing with FX and CFDs broker Celestial Trading Ltd / Tradeinvest90.

The FMA said this provider, which claims to be licensed and regulated by the Montenegro security Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term commission, is not entitled to provide investment advice about financial instruments under local laws.

The watchdog also advises against deposits and the transfer of money to these entities, given the inherent risk involved. While previous warnings have centered on 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 firms in years past, a large majority of unregulated entities have recently been cryptocurrency providers.

FMA joins its brethren of European regulators

But while its recent warning did not seek to explain the merits of the virtual asset class and the reasons behind why it's seeing adoption, the regulator highlighted the potential for their misuse.

Instead, the warning focused on addressing the increasing number of business models and investment schemes that use digital currencies.

The FMA is focused on identifying and blacklisting any individual or entity that is operating in Austria without a license or authorization where that is required by law. However, the FMA has warned that some companies are overseas operations and the watchdog may only be alerted to them once a local investor has a problem with them.

The FMA uses investor warnings to inform the public about fraudulent operations, unauthorized service providers, and possible scams. The system is not unlike measures deployed in other jurisdictions, such as routine warnings from the UK’s Financial Conduct Authority (FCA), or Belgium’s FSMA. The recent data supports this measure as an effective counter against scams, with the public being more informed overall and properly warned against unauthorized service providers preying on market participants.