7 August, AtoZ Markets – The financial regulator of Germany, the Federal Financial Supervisory Authority (BaFin), has ordered a number of brokerage companies to cease their operations. The three companies that have received orders are the BP1 LP, Gum Ltd., and Pairs Ltd.
BaFin Issues Cease Orders for Three Unregulated Brokers in Germany
The decision from BaFin appeared due to the fact that the abovementioned firms lack valid authorization. Therefore, they have no right to operate in the country and provide their investment services to German citizens. The decision from the German regulator is enforceable by the law.
The company that calls itself BP1 LP is reportedly operating a trading platform under the name Stern Options. The brokerage enables investors to buy or sell Binary Options and contracts for difference (CFDs) on equities, currencies, indices, and commodities and cryptocurrencies. The broker is based in the UK, as it also operates online via the website www.sternoptions.com.
This is not the first time Stern Options made it to the regulatory list. Earlier this year, the UK FCA has brought to the public attention the name of unregulated firm Stern Options. The regulator reports that Stern Options has no license by the FCA. However, the entity was targeting consumers in the UK and also carrying on the activities that require special regulations from the UK FCA.
Are Gum Ltd. and Pairs Ltd reliable brokers?
Another brokerage that has received a cease order is Gum Ltd. The company is a trading platform that is operated under the name Stern Markets. It is also operating online via www.sternmarkets.com. The firm offers an opportunity to trade CFDs on equities, indices, Forex, commodities, and cryptocurrencies.
The German regulator notes that the brokerage is based in the Marshall Islands. On its website, the broker also claims that it has the European support center on the 5th and 6th Floors, Landmark Building, 14 Tsar Osvoboditel Blvd., Sofia, Bulgaria, 1000.
The third brokerage featured in the warning is Pairs Ltd., which operates under the name Weiss Finance. The company offers investors to trade CFDs on equities, indices, currencies, commodities, and cryptocurrencies, just like the previous two brokerages.
The firm has its registered address on the Marshall Islands, while it is also claiming to be registered in Estonia under the license number 14310046.
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