The Malta Financial Services Authority (MFSA) has warned local investors against five online trading brokers, following the warning issued by the Commissione Nazionale per le Società e la Borsa (CONSOB). The brokers that are not authorized to offer financial advice and other related services to clients are TradeTech Fin Ltd, Yukon Global Ltd, Markets Broker, Age Capital Ltd, and Top Media Ltd.
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The brokers in question offer either binary options, forex, or CFD trading. The brokerages have never registered with CONSOB or the MFSA, and their providing of any financial services or activities are in violation of Italian law.
In April, the Maltese regulatory body made changes to its Investment Services Rules, heading in a direction similar to other European regulators. The changes revolved around Category 2 and 3 licenses, as well as trading platforms, leverages, and other related subjects. These licenses allow investment companies to offer CFD and spot forex contract trading. Under the new laws, one of the changes that has been applied is to the required capital amount for Category 2 licensed investment entities, which has jumped from €125,000 to €730,000.
In January, the Maltese financial watchdog issued a warning against an allegedly fraudulent clone company FXDD TRADE. The Maltese regulator stated that the broker was attempting to impersonate legitimate broker FXDD Global in both brand name and the appearance of its website. The MFSA strongly advised clients against trading with the copycat brokerage, as the company might be involved in a scam operation.