Belgium’s FSMA Warns Against FX, CFD and Binary Fraudsters

Belgian financial regulator, the Financial Services and Markets Authority (FSMA) released a statement this Thursday warning the public that online trading platforms are claiming new victims in Belgium.

This Thursday, the regulator warned against the activities of several entities that are unlawfully offering binary options, foreign exchange (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) products and/or contracts for differences (CFDs) on the market.

Specifically, the regulator has warned against the following four entities:

- Capital Pilots (www.capitalpilots.com)

- Marketcapital (www.marketcapital.co)

- Stock Global (www.stockglobal.com)

- Trendinggraphs (Premium Systems) (www.trendinggraphs.com)

According to the statement, the above-mentioned companies do not have the authorization to operate in Belgium. Furthermore, as of the 18th of August 2016, investment firms have been prohibited from distributing binary options, as well as certain FX and CFD products in the country.

“The actors that are the subject of this warning do not comply with the relevant rules. Moreover, consumers who have invested in these firms never recovered their investment. Therefore, such activities most likely constitute a case of investment fraud,” the FSMA said today.

FSMA urges investors to be vigilant

Scams within the FX, CFD, and binary options space are increasingly common. With technology allowing fraudsters to reach potential victims easier than ever through social media, consumers need to be more alert than ever.

In particular, the FSMA urges citizens of Belgium to always check the identity of any company that they are thinking of investing with. Furthermore, investors should check that the firm is also authorized, which can be verified by your local regulator.

“More than ever, then, prudence is necessary. In case of any doubt, and before making any (more) Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, don't hesitate to contact the FSMA using the consumer contact form. As well, please feel free to notify it of any suspicious company that has not yet been the subject of a warning by the FSMA,” the watchdog added.