Portugal Regulator Warns against IQCent and Raceoption

Continuing a string of warnings against 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 and cryptocurrency brokers, targeting traders in Portugal, Comissão do Mercado de Valores Mobillários (CMVM) has cautioned investors regarding IQCent and Raceoption.

Both brands are operated by the same parent entity, called Makerun Corp, which claims to be domiciled in Marshall Islands but not authorised to render financial services in Portugal.

The regulator explicitly points out that these firms are promoting speculative and risky trading products and that investors could lose their entire investment.

The CMVM typically blacklists unlicensed platforms engaged in activities that may pose a risk to investors in its jurisdiction, which are apparently targeting Portuguese traders.

Inherent Risks in Trading with Unlicensed Entities

Portugal’s watchdog confirmed that registration under the local laws is required in principle, even for overseas operators offering financial instruments for residents, or making transactions on their behalf as counterparties.

Some of the brands flagged today by Portugal’s securities watchdog had previously received similar warnings earlier from other regulators. This includes Raceoption which has a history of raising the hackles of financial regulators. The French watchdog had warned against the binary broker in the last few years.

Apparently, they eventually changed their headquarters address to the Marshall Islands after the AMF cracked down, but who can confirm these details? Virtual office addresses can be bought over the internet everywhere.

The watchdog has made several notable clampdowns of late against a number of fraudulent trading schemes. However, ultimately the onus is on investors to exercise due diligence before embarking on any activities, the CMVM says.

In conclusion, the Portugal regulator advises investors to consider any claims about the products offered carefully, and if it sounds too good to be true, then it probably is a fraud. Furthermore, investors should check whether the brokerage or platform are regulated by CMVM, which is in charge of forex brokers operating in Portugal.