Are you trading with MXTrade or TradingBanks? The brokers received another alert, this time the MFSA issues a warning against unauthorized MXTrade and Trading Banks.
31 October, AtoZForex – The Maltese regulator, Malta Financial Services Authority (MFSA), has updated its warning list adding two Forex Brokers – MXTrade and Trading Banks. The regulator alerts investors against using services of both entities as none of them is authorized by the FSMA to provide any investment or financial services in Malta.
MFSA warning against unauthorized MXTrade and Trading Banks
The official warning of the watchdog states that MXTrade is a brand held and run by or in association with a Malta registered firm, Grizzly Limited, with a registered address at Floor 5, 115A, Msida Valley Road, Birkirkara BKR 9024, Malta (previously at Suite 4, Number 62/63, Morina Court, Gorg Borg Oliver Street, St. Julians STJ 1081, Malta). MXTrade claims to be among the leading forex brokers and to provide a variety of trading services including forex, metal trading, and CFDs. The brokerage operates via www.mxtrade.com.
Referring to Trading Banks, the brokerage is also a brand owned and operated by Grizzly Limited with the registered address being Floor 5, 115A, Msida Valley Road, Birkirkara BKR 9024, Malta. Trading Banks run its operations through the www.tradingbanks.com website. The entity identifies itself as an international forex broker that provides investors with a range of trading services including forex, metal trading, and CFDs.
Why should investors be wary of these two brokerages?
The MFSA warns investors against using services of MXTrade, Trading Banks as well as Grizzly Limited due to the fact that none of the companies holds a license from the regulator that authorizes to provide any investment or financial services in Malta. In addition, there is no information indicated on the brokerages’ websites about being registered with any regulatory authority.
Consequently, the MFSA highly recommends investors and consumers of financial services to verify if a brokerage is regulated by the MFSA or another appropriate regulatory authority before investing money. A list of companies that are authorized by the Maltese watchdog can be found here.
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