Unregulated Forex broker RoyalFXTrade, 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.
RoyalFXTrade gives out faulty corporate information and it has also been blacklisted by the Italian CONSOB. We remind readers that websites with irregularities in their corporate information are always scams and no money should be deposited to a firm which does not disclose corporate information, as well as a license.
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.