Unregulated Forex broker NoviFX, along with several other alleged scammers, have been the latest additions to the warning list of 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.
NoviFX is supposedly owned and operated by a company registered in Bulgaria with the name Magic Consulting Ltd. We remind readers that Bulgaria is an EU member-state and Forex trading is well integrated within the regulatory framework of the country. The company not only is not regulated by the local Financial Supervision Commission but displays little to none information on its website.
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.