MFSA Issues Statement On Unlicensed FX Brokers Amidst False Claims Of Oversight

The Malta Financial Services Authority (MFSA) has issued a statement of warning to the general public given the increasing number of unlicensed or unauthorized 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 brokers operating in the country though a string of websites and advertisements.

MFSA Working To Expose Fraudulent Brokers

The MFSA is the paramount regulator of financial services offered in and from Malta, whose duties include the regular policing and oversight of a variety of operations, namely forex. Last month, the body was particularly active, warning against a variety of unauthorized operations, including several forex firms.

Unauthorized forex brokers pose a tangible threat to investors, given the lack of credible backing, Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, and general lack of regulatory oversight. Malta, like several countries throughout the industry, maintains a growing forex market, encroached by a number of unlicensed brokers. In its most recent edict, the MFSA cites a number of websites that falsely claim to hold offices in Malta, along with issuing fraudulent statements of fiscal oversight by the MFSA. As a corollary, the entire list of regulated firms in Malta can be found on its website.

For these reasons, the MFSA advises all traders and individuals to exercise caution when dealing with any forex brokers whose licensing is in question. As such, prospective users are advised to first consult the MFSA database in order to ascertain the true regulatory status of a given broker.