Switzerland’s FINMA adds FX, CFDs broker UnitFx to black list

Switzerland’s FINMA adds FX, CFDs broker UnitFx to black list

Switzerland’s financial regulatory body, the Financial Market Supervisory Authority (FINMA), has added forex and contracts for difference (CFDs) broker UnitFx to its warning list with companies that operate in the country, data from the watchdog’s website indicated. The regulator did not provide an explanation as to why it has decided to include the broker to the list.

The inclusion might mean the regulator suspects that UnitFx, which operates via www.unitfx.com, targets Swiss citizens and offers them financial services, including forex trading, without being authorized. Under the local regulations, if an investment company wants to operate in Switzerland, it need to acquire the bank license from the relevant authorities.

On its website, UnitFx does not provide any information about regulation and authorization by any relevant authorities.

The FINMA keeps an updated list of companies that might be operating without a license although their service requires authorization and should be supervised. Earlier this month, it added automated forex broker AlgoBanque to its black list.

If FINMA’s investigation shows a company is indeed providing unauthorized services, the regulator can initiate enforcement proceedings and impose measures, including closing the company down. The regulator advices investors to be cautious and check companies and their licenses before engaging with them. They can do so by checking FINMA’s warning list and the Commercial Register for Swiss providers. A good rule of thumb is to always diversify investments and to remember that high returns usually go hand in hand with high risk.

UnitFx offers trading services for forex and CFDs on commodities, indices, and stocks through the MetaTrader 4 (MT4) trading platform, an industry leader. Traders can chose between Standard, Micro and VIP trading account by UnitFx.

We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.

Source: FINMA

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