Spanish watchdog CNMV has issued a warning against iAlphagroup, an unauthorized Forex broker in Spain. The regulator states that this brokerage firm does not have a license to offer financial services in the country.
December 4, 2020, | AtoZ Markets – Spanish financial regulator, the Comision Nacional del Mercado de Valores (CNMV) has on Friday issued a warning for Spanish investors.
The regulator has warned traders to be wary of a brokerage firm that does not have a license from CNMV.
CNMV warns Spanish investors against dealing with iAlphagroup
In a bid to fight against fraud in the financial sector the Spanish financial supervisor CNMV has warned investors to tread cautiously when dealing with Forex brokers. Specifically, the regulator has warned investors against iAlphagroup or Alphagroup. This Forex broker appears to target Spanish investors.
iAlphagroup is a Forex broker that is operating online via http://www.ialphagroup.com/, and is associated with AG Markets (www.ag-markets.eu). The company provides an opportunity to trade stocks, currencies, commodities, stock indices, ETFs and many more.
“We work on the international financial markets and we are giving our customers access to it by the exclusive trade agreements we have with some of the finest a most reputated financial brokers and banks. These are licensed and audited institutions which offer our clients protection, confidentiality and security,” the broker says on its website.
However, according to the alert from CNMV, iAlphagroup does not have the authorization to operate in Spain under Article 295(1)(a) and (b) of the Portuguese Securities Code. As a result, they cannot offer investment advice in relation to financial instruments.
The need to be wary
Europe happens to be one of the biggest financial market players. Spain, as a major contributor to these statistics, has attracted scam Forex brokers making unrealistic claims of potential returns and operating without the correct license. As a result, the CNMV has been active in overseeing the financial market in Spain.
This has prompted keen scrutiny from the CNMV as it advises investors to always check the list of reliable Forex brokers before committing funds to such companies. The regulators also clarified that non-authorized service providers may be subject to criminal penalties.
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