Spanish watchdog CNMV unmasks seven unregulated brokers in Spain


Spanish watchdog CNMV unmasks seven unregulated brokers in Spain in attempt to protect investors. The CNMV has recently tightened control over Forex market.

23 May, AtoZForex The Comision Nacional del Mercado de Valores (CNMV), the financial regulator of Spain, has warned the public against seven unregulated financial firms. The regulatory body of Spain has previously informed about tightening of the measures in its fight against the fraud in the financial sector.

Spanish watchdog CNMV unmasks seven unregulated brokers in Spain

The Spanish regulator has issued the warning for investors against dealing with seven online trading companies, which include both Forex firms and Binary Options brokerages. The CNMV’s warning list has included the following unregulated brokers in Spain:

  • TorOption
  • ARC Global Trader S.L.
  • Tradev LTD
  • 53 Capital Trade Limited
  • DGX Systems LTD (also known as Prime FX Bank)
  • DGX System LTD
  • First Investments Capital Markets

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Earlier in May, Canadian regulator BCSC has warned investors’ community against dealing with TorOption. TorOption is a Binary Options broker operating from Glasgow, Scotland. The parent company of the firm under the spotlight is Smart Choice Zone LP.

Moving on, Arc Global Trader, S.L. is operating online via www.arctrader.com and www.arctrader.es. The regulator states that a person named Andrés Raúl Cano Olivares is involved with Arc Global Trader in a business sense. ArcTrader CNMW warning stated that ArcTrader is an unregulated entity.

Unregulated brokers in Spain

The Spanish regulator CNMV commented on the following unregulated brokers in Spain:

  • Tradev.com is an unregulated broker operating with Tradev Ltd. name.
  • 53 Capital Trade Limited is another unregulated Forex and Binary options broker in Spain operating via 53capitaltrade.com and www.53option.com
  • DGX System Ltd is another unregulated binary options broker
  • Similar to DGX System Ltd, DGX Systems Ltd  using Prime Fx Bank and PFxBank (www.pfxbank.com and www.pfx-bank.com) is unauthorized Forex Broker in Spain
  • Finally, the First Investments Capital Markets firm is operating online at www.firstinvestmentscapitalmarkets.com and www.first-union-esp.com are both unregulated entities with no authority to operate in Spain.

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As Spanish watchdog CNMV unmasks seven unregulated brokers in Spain, they also stated that there are other binary options and Forex brokers operating without authorization in Spain.

New CNMV’s Forex requirements

Earlier this March, Spain’s CNMV has set certain parameters for the industry brokers providing services to the retail customers. According to the communication, the regulator’s requirement is that every brokerage dealing in CFDs, Forex. Binary options brokerages will have to mention additional risk warnings to the investors if the leverage is higher than 1:10.

As per the updated CNMV requirements, a warning sign should pop up educating the investor about the risk associated with the position or order that the investor is placing. As per the tentative translation from the CNMV document, the warning sign should look something like this:

“The financial product you are about to acquire (product must be identified) is a product with leverage. You must be aware that losses may be greater than the amount disbursed initially for acquisition.”

In addition, the financial regulator wants the CFD, Forex, and binary options advertisement should contain a similar warning sign. This move is taken for educating the investors regarding the risk associated with the said financial products.

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