Brazilian Watchdog Warns IronFX Is Unauthorized to Operate in the Country
The Brazilian declaration mandates the immediate suspension of any public offering of investment opportunities by IronFX.
The Brazilian Securities and Exchange 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 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.
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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.
Well done IronFX! You make competitors life so much easier every day.
Funny to see how their so called “Management” chooses only monkeys to handle their business locally.
I am beginning to feel that IronFX gets an unfair share of the bad press. It is not that this industry, or the major players in this industry are god sent.
Almost all forex brokers out there take customers from a country like Brazil, and so many others, where they are not regulated.
Somehow a lot of targeted bad media attention is diverted to this company.
Indeed, i was surprised it was not mentioned in breaking news.
They are also the only broker blacklisted in Japan 🙂
IronFX will be closed very soon because of their incompetent management, because of their zero respect for their clients, and the most important for the fraud their are doing in this moment by not giving the money to their clients. Neither their political relations will not save them.
Can you please provide the link to the declaration specific to IronFX? This seems like a very opportune and targeted announcement given that all FX Brokers operate in the Brazilian market in the same manner.
http://www.cvm.gov.br/noticias/arquivos/2015/20150819-1.html
Come on Finance Magnates, give us a break. Almost all FX Brokers have got the same warning (FXPRO, AVAFX to name a few).
There is NO law prohibiting Brazilians investing abroad and an investment in any non-Brazilian. FX Broker is an offshore investment. CVM has no jurisdiction on an offshore Broker.
But good effort by FM to publicise again only against IronFX.
Next article will be that they are blacklisted in Japan 🙂
IronFX is a very high profile company and therefore it might seem to draw more focus than other brokers, but we here at FM certainly do not have anything against them.
We routinely publish warnings from all over the world on all companies – just a few recent examples:
http://www.financemagnates.com/binary-options/regulation/french-watchdog-lists-223-unauthorized-binary-options-brands/
http://www.financemagnates.com/forex/regulation/fca-issues-warning-on-unauthorized-forex-brokerage-ksf-trade/
http://www.financemagnates.com/forex/regulation/french-financial-watchdogs-update-list-of-unauthorized-forex-brokers/
http://www.financemagnates.com/binary-options/regulation/financial-binary-binaryfx-and-prime-fms-on-regulators-radar/
Avi – we have not seen anything against XM (multiple US fines for accepting US clients) or Markets.com (Teddy Sagi’s Playtech) that was recently found guilty of no KYC measures by CYSEC and fined €168,000 (one of multiple fines).
IronFX seems to make the headlines even for a missed milk delivery. They are one of the most regulated Brokers in FX and not found guilty of anything or fines yet.
A simple search would have shown you this is not true, we published here:
http://www.financemagnates.com/forex/regulation/cysec-fines-safecap-markets-com-e168000-for-regulatory-violations/
Avi, with all due respect, you have shown your independence multiple times when writing for other brokers that advertise more prominently on this site and especially when writing for your ex employer.
Keep up the good work!!!
Paulo, looks like you are missing the point here. IronFX is physically working in Sao Paulo, Brazil and promoting its services to retail clients. This is against Brazilian law, we all understand brazilian clients can invest offshore. But a company can not makert internally, otherwise it should be done via a local regulated firm or a offshore investment fund, not a broker. A part from that, everyone knows that IronFX is the worst broker in the industry. And they are not only working on PL Agreement basis with their IBs worldwide. That means they are offering the possibility to split… Read more »
These are routine, no value announcements from CVM e.g. see below for AIM-listed Plus500 that was recently acquired by Playtech.
Plus500
http://www.valor.com.br/financas/997278/cvm-suspende-oferta-de-investimentos-no-mercado-forex
This Plus500 warning was in 2011, so its not news in 2015.
Markets.com had the same warning in April 2015 and you dont seem to have posted that either. Very selective treatment I would say.
Israelis are immune from such reporting
Yeah, keep up the good work.
Continue your mission!!!
And some more from a cursory search for good measure.
TradingSoup: http://www.ebc.com.br/noticias/economia/2015/05/cvm-desautoriza-empresa-de-atuar-no-brasil-inclusive-pela-internet
Liteforex: http://www.marcosassi.com.br/cvm-alerta-para-oferta-irregular-em-forex
Diferencial: http://www.arenadopavini.com.br/artigos/cambio/o-forex-de-volta-aos-radares-da-cvm
ForexBrasil: http://www.arenadopavini.com.br/artigos/cambio/cvm-pune-investidores-por-operacoes-de-cambio-forex
All major Brokers are on this list but only IronFX seems to make the news. Markets.com is there, FXPro is there, AvaFX is there.
http://sistemas.cvm.gov.br/asp/cvmwww/sai/Cons_Tipo_Ato.asp
And please make sure this is published as half the comments dont get published selectively. A screenshot has been taken for use as necessary if no publication.