4 April, AtoZForex, Lagos – In line with its duty to ensure a safe and sound investment environment for the public, Spain’s financial regulator, the National Securities Market Commission (CNMV) has issued a recent public warning about the illicit operations of various forex brokers. The CNMV has imposed a warning on the following financial firms: BelforFx and iSocial FX. Additionally, the websites escueladetraders.org and escueladetraders.es also received a warning.
iSocial FX warning
This firm operates as a social investment platform, ranking a number of traders according to performance. The whole idea is to attract individuals to invest funds for these traders. Activities like this are very sensitive and cannot be trusted if not well monitored by a reputable financial regulator. When assessing the website of iSocial FX, it becomes quite obvious that the activities purported on the site are unregulated. Along with no registration at the CNMV, this financial firm needs to be avoided.
CNMV BelforFx warning
The Spanish financial regulator has emphasized that BelforFx is not authorized to carry out its activities within the region or target Spanish clients. The CNMV is not the first of such regulatory bodies to issue a stern warning against the forex broker. New Zealand's Financial Market Authority (FMA) also recently warned the public about the firm WGM Group Limited (formerly Belfor Capital Limited) trading as BelforFx.
Similar to the CNMV BelforFx warning, about a month ago the FMA issued a warning on BelforFx on the same grounds. Aside, the FMA reported to receive overseas complaints from clients about BelforFx, in more detail the complaints were about the broker's failure to repay its clients. After an investigation the regulator stated that they “will not be able to help you to recover your money. If you are having difficulty accessing your funds you will need to contact the relevant dispute resolution scheme.”
Hence, the FMA has deregistered BelforFx from the Financial Service Providers Register and warned the public that you should always avoid dealing with unregulated financial firms.
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