Malta's MFSA Issues Warning Against MXTrade and TradingBanks

Malta’s financial watchdog, the Malta Financial Services Authority (MFSA), issued a statement today after becoming aware that two entities going by the names of MXTrade and Trading Banks were operating without the appropriate licences.

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MXTrade

MXTrade is a brand owned and operated by and associated with a Malta registered company called Grizzly Limited with a registered office at Floor 5, 115A, Msida Valley Road, Birkirkara BKR 9024, Malta.

The brokerage has an internet presence at www.mxtrade.com and describes itself as one of the leading 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 brokers, offering a range of trading services including forex, metal trading and CFDs.

Trading Banks

TradingBanks is also owned by Grizzly Limited with the same registered address. TradingBanks operates online via www.tradingbanks.com and also provides a range of trading services including forex, metal trading and CFDs.

The MFSA has flagged MXTrade and TradingBanks, together with Grizzly Limited, alerting the public in Malta and abroad that none of these entities possess a licence authorised by them to provide any investment or other financial services under Maltese law.

In its statement today, the MFSA has advised investors and consumers of financial services that prior to making any investment or entering into any financial services transaction, they should ascertain that the entity with whom the investment or transaction is being made is authorised to provide such services prior to investing any money.

The public has thus been advised to abstain from any business or transactions with these entities and to be aware of the increased risk caused by the lack of authorisation required to provide financial services in Malta and the European Union.

After recently publishing a warning against unlicenced payments provider, Emexpay, the Maltese watchdog continues its efforts to clamp down on unauthorised financial activities in the country, resulting in the exposure of both MXTrade and TradingBanks today for flouting its rules and regulations.