MFSA Issues Warning against Five Unauthorized Brokers

The Malta Financial Services Authority (MFSA) has warned local investors against five 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 brokers, following the warning issued by the Commissione Nazionale per le Società e la Borsa (CONSOB). The brokers that are not authorized to offer financial advice and other related services to clients are TradeTech Fin Ltd, Yukon Global Ltd, Markets Broker, Age Capital Ltd, and Top Media Ltd.

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The brokers in question offer either binary options, 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, or CFD trading. The brokerages have never registered with CONSOB or the MFSA, and their providing of any financial services or activities are in violation of Italian law.

In April, the Maltese regulatory body made changes to its Investment Services Rules, heading in a direction similar to other European regulators. The changes revolved around Category 2 and 3 licenses, as well as trading platforms, leverages, and other related subjects. These licenses allow investment companies to offer CFD and spot forex contract trading. Under the new laws, one of the changes that has been applied is to the required capital amount for Category 2 licensed investment entities, which has jumped from €125,000 to €730,000.

In January, the Maltese financial watchdog issued a warning against an allegedly fraudulent clone company FXDD TRADE. The Maltese regulator stated that the broker was attempting to impersonate legitimate broker FXDD Global in both brand name and the appearance of its website. The MFSA strongly advised clients against trading with the copycat brokerage, as the company might be involved in a scam operation.