CySEC red flags AfexEU, Protechfx, clone of TFI Markets
The Cyprus Securities and Exchange Commission (CySEC) has intensified its efforts to combat unauthorized brokers by issuing yet another warning against multiple unlicensed providers. These providers have been blacklisted for offering trading services in foreign exchange (FX) and cryptocurrencies without the necessary authorization from CySEC.
CySEC has also highlighted that some of these unlicensed brands are deceptively claiming affiliation with other brokers that are already regulated in Cyprus and hold the Cyprus Investment Firm (CIF) License. In response, CySEC has published a list of blacklisted domains associated with these unauthorized providers.
Earlier in March, the Federal Financial Supervisory Authority (BaFin) in Germany issued a warning regarding tfimarkets24.com, a clone of TFI Markets. The regulatory authority stated that this particular broker is operating and offering financial and investment services without the necessary authorization. Additionally, BaFin highlighted that Fake TFI Markets is involved in identity theft, further emphasizing the risks associated with engaging in any financial activities with this unauthorized entity.
As CySEC’s attitude of adopting more stringent licensing guidelines and operating regulations becomes ever clearer, certain aspects of the rules and operations start to come into sharper focus.
CySEC warns of ‘gamification’ and “finfluencers”
CySEC has recently released retail investment behaviour research showing what it views as a concerning rise in unregulated, volatile investment products.
The research also showed that too few spend enough time researching the products they plan to invest in or the firm selling them, raising concerns that investors did not understand the relevant risks. Of the retail crowd, a quarter revealed that they spent 6-7 days researching a particular product, 7% said they did less than 30 minutes due diligence or none at all before committing their money to a product.
Meanwhile, only 30% of all respondents looked up their broker on the website of the country’s regulator to check it was licensed. While 15% didn’t do any checks at all, more than half (51%) said they looked at company reviews or the firm’s own website.
With many people afraid of missing out on the chance to make easy money, Cypriot regulators also launched a campaign to educate its citizens on the potential risks involved when it comes to online trading.
The country’s financial regulatory body was behind the campaign, which warns of using colorful apps that make trading seem empowering instead of intimidating.