The unregulated binary broker FinRally has been added to the warning list of the Spanish financial watchdog – the Comision Nacional del Mercado de Valores (CNMV).
On the official warning we read the usual that the firms are not properly licensed by the relevant authorities and are providing such financial services outside the law.
FinRally is owned and operated by an offshore company with the name Algobit LTD as we have noted in our review of the brokerage. The company is registered in Seychelles which is a favourite destination for would-be scammers due the country’s liberal laws regarding the registering of a firm, the authorities do not even require a physical presence in order to be done.
We always remind readers of all the danger and risk in investing with an unregulated Forex broker. Without a license there is simply no guarantee for the safety of the client’s funds which is, perhaps, the most vital aspect of trading. Furthermore, there is no assurance that there is no commingling of the client’s money with the finances of the firm, as well as no authority to which to turn in case of scam.
The Comision Nacional del Mercado de Valores (CNMV), just like the FCA in the UK and CySEC in Cyprus, maintains and updates an online registry of all the investment companies that are authorized to do business in Spain. We advise interested traders to always run a quick check before investing with a brokerage.