CONSOB Flags Five Unregulated FX Brokers Including ForTradersFX


CONSOB, the Italian securities regulator, has started the week by updating its warning list, alerting the public to 5 entities operating without authorization.

February 3, 2020, | AtoZ Markets – This Monday, the Italian regulator has singled out ForTradersFX Ltd; Gembell Limited Services – PO TRADE LTD – Tifiya Group s.r.o.. The watchdog also flagged FAH Investment LTD; Muller Enterprise Ltd, FSM Smart Ltd, and many others.

Is ForTradersFX Ltd scam or reliable?

In its warning, CONSOB states: “The commission availed itself of the powers resulting from the ‘Decreto Crescita’ (‘Growth Decree’; Law no. 58 of 28 June 2019, article 36, paragraph 2-terdecies), on the basis of which Consob can order internet access providers to block access from Italy to websites offering financial services without the proper authorisation.”

ForTradersFX Ltd claims to be “a global Forex & CFD provider, offering advanced yet user-friendly in-house trading platforms,” its website (www.fortradersfx.com) states.

Gembell Limited Services (https://pocketoption.com/en) also claim to be trading providers of a range of assets – currency, commodities, stocks, cryptocurrencies. CONSOB has ordered in particular the black-out of the websites including:

  • www.web.cryptozone24.com;
  • www.aurumpro.co, https://aurumprofin.cc and https://aurum-pro-finance.cc;

CONSOB remains vigilant

CONSOB has been amongst the most vigilant and strict regulators in Europe when it comes to dealing with unregulated brokers. Earlier this month, it has put a blanket ban in place against activities of Hoch Capital Ltd, also a CySEC licensed Forex & CFD broker.

The decision also prevents the Cypriot intermediary from soliciting new customers or continuing its current relationships with Italian customers. However, the company will, therefore, have to close the accounts of its Italian traders.

The regulator said it made the latest decision under article 7-quarter, paragraph 4 of the Consolidated Financial Law (TUF). This legislation allows CONSOB to order investment firms and brokers operating in the country to cease their activities. That is after having informed the competent authority of the Member State.

To this end, CONSOB reminds all investors to look at the section ‘Be aware of fraud!’ on the homepage of the www.consob.it website,” the regulator added.

Earlier in June, the watchdog decided to follow in the footsteps of ESMA, banning the sale of binary options to retail customers and also extended its restriction against promoting the contracts for difference (CFDs) to non-professional investors.

The CONSOB warning list also features the names of businesses that are dealing in crypto assets, either in the form of the underlying coins or its related derivatives such as CFDs.

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