Spanish Regulator CNMV Exposes Two Unregulated Brokers

The domains are not registered in Spain and are thus not authorized to offer trading services there.

The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, announced today in a statement that it has added to its warning list two domains that are illegally offering financial services to Spanish citizens.

The financial watchdog today blacklisted www.trade12.com and binomo.com. The CNMV accuses the named forex and binary options trading companies of soliciting clients and/or providing them with financial services despite not being authorized. Consequently, the firms have been found in violation of the second paragraph of Article 17 of the Securities Markets Law.

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Although the financial watchdog didn’t provide specific details, the inclusion of the domains means that they are not officially registered in Spain and are thus not authorized to offer trading services to local traders.

This is why the CNMV advises Spanish investors to check its registers before they deposit any fund with a broker, especially if the related broker used aggressive marketing techniques.

Earlier this year, the CNMV issued a circular setting a host of new rules regarding trading costs and risk disclosure, leverage and advertising requirements. In essence, the new guidance concerns companies that offer forex, contracts for difference (CFDs) and other speculative products such as binary options among retail investors in Spain.

More specially, the CNMV notes that any broker offering ‘excessive leverage’ greater than 10:1 needs to explicitly warn investors that it believes that such products are not appropriate for retail investors due to their complexity and the risks involved.

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