14 March, AtoZForex, Lagos –Another regulator has issued a warning against MXTrade, a forex broker, which is operated and owned by the financial services firm Lau Global Services Corporation. It provides trading services of securities, financial as well as commodity-based derivative instruments. Although the company is licensed through the Belizean International Financial Services Commission (IFSC), it has received multiple warnings from various regulators in different jurisdictions, who are concerned about the firm’s ineligibility to operate in their regions. The latest warning against MXTrade comes from Russia’s Commission for the regulation of relations in the financial market (KROUFR).
KROUFR MXTrade concerns
The Russian regulator typically has a “black list” for such firms. This list was designed to contain and circulate information about firms discovered to be using fraudulent schemes in the financial markets. Major characteristics of such firms include:
– False Positioning For example, a company under the guise of providing asset management services to clients engaged in fundraising, with the payment of income to customers is done by bringing in new ones (the so-called pyramid scheme).
– Unfair and aggressive promotional activities in which the company to all its customers and inflated promises guaranteed profit (sometimes up to 50% per day and above). Silent existing risks, which are inevitable when trading in the Forex market.
Hence, the KROUFR has warned the public about MXTrade, noting that as a result of imperfection of the legislation, such companies still manage to evade responsibility, and customers have great difficulties with the return of their funds. The MXTrade withdrawal issues makes it unsafe to trade with, as clarified by the regulator.
Other warnings against MXTrade
It is worthy to note that this firm has also been previously included in the warning list of other regulators from other jurisdictions. The Cyprus Security and Exchange Commission (CySEC) warned about this firm last year. MXTrade operates via https:// www.mxtrade.com while the financial watchdog noted that pursuant to the Investment Services and Activities and Regulated Markets Law, the firm is not authorized to provide investment services in the region, hence MXTrade gets CySEC warning.
Also, Turkey’s Capital Markets Board (CMB) made a decision to block the forex broker, following an investigation of the authority into MXTrade. Revealing that the brokerage does not possess over a local license, while MXTrade has been alleged for soliciting investors in Turkey.
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