List of regulatory actions against forex brokers and binary firms


The forex and binary options industries have come under intense regulatory scrutiny in recent months amid a surge in customer complaints. Regulatory crackdown on retail forex and binary brokers has revealed that a large number of firms engaged in the trades operate without proper registration or regulations in the markets they cover. Regulators are warning investors to avoid brokers operating without verifiable authorization as the pose investment risk. In Belgium, the financial industry regulator there recently issued a blanket ban on all forms of retail trade in leveraged derivatives such as CFDs and forex.

Crackdown on unscrupulous financial services providers continues in more jurisdictions. The warning against Binary Uno comes after investigations by BCSC revealed that the broker was engaging in unlawful soliciting customers in British Columbia. The investigations further revealed that Binary Uno is not registered to offer trade in, or advice on securities contracts list of regulatory actions against forex brokers and binary firms BC.

However, Binary Uno claims on its website that it offers online trading platform for CFD, FX and commodities trading to investors globally. Investigations by BCSC also revealed that Binary Uno is no regulated by any other jurisdiction and that has added to the questions over its authenticity. Based on the investigations, BCSC has concluded that dealing with Binary Uno poses risks to investors and they should avoid the broker.

BCSC also warned against dealing with Edgedale Finance after it discovered that the broker was unlawfully soliciting its financial services to the residents of BC. Most of those brokers are accused of making it difficult for clients to withdraw their funds.

In France, the financial markets regulator, AMF, recently updated its list of unauthorised online binary brokers that have been found to be preying on French people.

The brokers list of regulatory actions against forex brokers and binary firms have been added to the list include connecting-trade. The binary brokers blacklisted in France face accusations ranging from not honouring client request to withdraw funds to executions that are not consistent with what customers expected. Part of the reason for blacklisting of Traderxp is that it is not authorised list of regulatory actions against forex brokers and binary firms FCA as required of all firms and individuals engaged in the business of selling or promoting financial products in the U.

As such, investors have been warned against dealing with the broker. Besides Traderxp, the other binary brokers blacklisted by FCA include 01broker. In forex trading, FCA has blacklisted brokers such as 4xp. Stay up to date with the financial markets everywhere you go. Canada updates its list of blacklisted brokers The British Columbia Securities Commission BCSCa provincial financial regulator in Canada, has raised the alarm over the operations of binary options broker Binary Uno.

Broker crackdown in France In France, the financial markets regulator, AMF, recently updated list of regulatory actions against forex brokers and binary firms list of unauthorised online binary brokers that have been found to be preying on French people.

Brokers blacklisted in the U. Comments 0 comment s Click here to cancel reply. Get the most recent news at your inbox Stay up to date with the financial markets everywhere you go.

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Notably a significant number of overseas retail forex brokers and binary options brokers have obtained registration from CySEC. However, joining the EU and adopting the Euro significantly changed the financial regulatory framework that CySEC policed for what had been previously considered a tax haven. On May 4,CySEC announced a policy change regarding the classification of binary options as financial instruments. The effect was that binary list of regulatory actions against forex brokers and binary firms platforms operating in Cyprus where most of the platforms are based had to be regulated.

CySEC has the following responsibilities: CySEC is administrated by a five-member Board which is composed of the Chairman and the Vice-Chairman, that are employed full-time, plus three other members. In addition the Governor of the Central Bank of List of regulatory actions against forex brokers and binary firms is represented by a non voting board member.

The members of Board are named by the Council of Ministers following a proposal of the Minister of Finance and their service is a five-year term.

CySEC has list of regulatory actions against forex brokers and binary firms very high growth rates of registrations and pioneering legislation in regards to specific financial services. Throughout andCySEC has received criticism from traders and industry commentators who claimed that the organization required better legislation regarding the regulation and monitoring of high risk investment firms. Most of the criticism came in regards to specific binary option brokers.

CySEC was the first financial regulator aiming to regulate binary options. As such, binary option brokers, including prominent ones, are either registered or attempting to register with CySEC to be able to legally operate within the Eurozone or to be trusted internationally.

CySEC has implement sweeping changes to both the registration and regulation processes of all registered entities. Firms providing investment and other ancillary services employ individuals which hold relevant qualifications. In accordance with state law, an investment firm employee involved in the provision of investment services or the carrying out of investment activities, must be registered in the public register of certified persons after passing the exams.

The law aims to arm Investment Firms with a good understanding of the local and European legal and regulatory framework and practices along with the essential understanding in regards to Money LaunderingRisk Management and Economics.

From Wikipedia, the free encyclopedia. Retrieved 13 September The Destruction of a Tax Haven". Retrieved 13 September — via business.

Retrieved 22 April Retrieved March 16, Board of Directors - Bloomberg". Credible Securities Market a Pillar for Growth". Retrieved from " https: Financial regulatory authorities of Cyprus Economy of Cyprus Securities and exchange commissions establishments in Cyprus Government agencies established in Articles containing Greek-language text.

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