The Comision Nacional del Mercado de Valores (CNMV), the regulatory body of Spain, has added seven additional brokers to its warning list. The increase in statements released against unauthorized online trading companies comes as no surprise, as the CNMV previously announced the upping of measures in its battle against firms running scam operations.
The companies that have now joined the CNMV’s growing ban list since March include TorOption, ARC Global Trader S.L., Tradev LTD, 53 Capital Trade Limited, DGX Systems LTD (also known as Prime FX Bank), DGX System LTD, and First Investments Capital Markets. Some of these brokerages have already been added to similar lists in other countries.
TorOption, which is operated by Smart Choice Zone LP, was added to the warning list in Manitoba, Canada, by the Manitoba Securities Commission (MSC) in late April. The same action was repeated by the British Columbia Securities Commission (BCSC) earlier this month. The CNMV took similar measures against two brokerages by the names of MT4Invest and OEXgroup back in April. These entities have been the subject of warnings in other countries across Europe too.
The CNMV recently announced its having set new regulatory rules in order to protect customers, regarding trading costs, risks disclosure, leverage and advertising requirements. These guidelines concern online trading companies involved in forex, binary options, and contracts for difference (CFDs).
In essence, the Spanish regulator requires firms to have full transparency with their clients regarding the actual costs and risks involved with their platforms.