Belgium’s FSMA Warns Against FX, CFD and Binary Fraudsters

The regulator has identified four entities operating in Belgium without authorization.

Belgian financial regulator, the Financial Services and Markets Authority (FSMA) released a statement this Thursday warning the public that online trading platforms are claiming new victims in Belgium.

This Thursday, the regulator warned against the activities of several entities that are unlawfully offering binary options, foreign exchange (forex) products and/or contracts for differences (CFDs) on the market.

London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now

Specifically, the regulator has warned against the following four entities:

–         Capital Pilots (www.capitalpilots.com)

–         Marketcapital (www.marketcapital.co)

–         Stock Global (www.stockglobal.com)

Suggested articles

KVB PRIME Strikes UK with Influential Finance Summit SponsorshipGo to article >>

–         Trendinggraphs (Premium Systems) (www.trendinggraphs.com)

According to the statement, the above-mentioned companies do not have the authorization to operate in Belgium. Furthermore, as of the 18th of August 2016, investment firms have been prohibited from distributing binary options, as well as certain FX and CFD products in the country.

“The actors that are the subject of this warning do not comply with the relevant rules. Moreover, consumers who have invested in these firms never recovered their investment. Therefore, such activities most likely constitute a case of investment fraud,” the FSMA said today.

FSMA urges investors to be vigilant

Scams within the FX, CFD, and binary options space are increasingly common. With technology allowing fraudsters to reach potential victims easier than ever through social media, consumers need to be more alert than ever.

In particular, the FSMA urges citizens of Belgium to always check the identity of any company that they are thinking of investing with. Furthermore, investors should check that the firm is also authorized, which can be verified by your local regulator.

“More than ever, then, prudence is necessary. In case of any doubt, and before making any (more) payments, don’t hesitate to contact the FSMA using the consumer contact form. As well, please feel free to notify it of any suspicious company that has not yet been the subject of a warning by the FSMA,” the watchdog added.

Got a news tip? Let Us Know