Brazilian Watchdog Warns IronFX Is Unauthorized to Operate in the Country

The Brazilian Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CVM) has issued a warning to the public today against Cyprus-regulated broker IronFX. The watchdog informed traders that the firm is not licensed by the local authorities to acquire customers residing in Brazil.

The regulatory pronouncement was made today as a Declaratory Act published in the CVM Official Gazette. The Brazilian declaration also mandates the immediate suspension of any public offering of investment opportunities by IronFX in the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, directly or indirectly. As the watchdog specifically focuses on the access to the broker's homepage (www.ironfx.com) and not to any Brazil specific site or landing page it will require IronFX to block access from all IPs in the country to comply.

IronFX is further warned that if it does not comply with the declaration , the company will be subject to the application of daily fine of R $ 1,000 ( about $285 USD) without prejudice to the responsibility for violations already committed before the publication of the Declaratory Act, with the imposition of the penalty applicable under the law. The very low daily fine does not seem as anything that can deter any company in a market as big as Brazil but IronFX does have an office in Sao Paulo and the watchdog might take legal actions to shut it down if the company does not comply.

This is not the first time that the international broker faced a similar situation in Latin America. In March 2014, IronFX has been accused of operating and promoting its products without proper authorization in Colombia, raising allegations from the Financial Supervisory Authority of Columbia (SFC), via an SFC manifest.