The Cyprus Securities & Exchange Commission (CySEC) has cracked down on four unregulated trading platforms. The financial watchdog is increasingly turning its sights to unregistered investment websites. Read on for the details.
Unregulated Brokers Exposed
The CySEC blacklisted log-bit.com, rynattrading.org, robofxmarkets.com and spursmarkets.com. In a public statement issued this week, the regulator noted that the companies were falsely claiming to be regulated by the financial agency on their website. The CySEC made clear that the firms were not authorized to offer investment services, provided for in Article 5 of Law 87 (I)/2017.
Retail traders are not protected under the Investor Compensation Fund (ICF) with unlicensed providers. The ICF is designed to protect clients’ funds in the event of broker insolvency. Importantly, brands making false claims on their website may also be peddling other misleading information, from promotions and bonuses to hidden trading fees.
These bogus investment websites are the latest in a series of crackdowns from Europe’s chief financial watchdog. The CySEC issued a warning about five unauthorized platforms in September of last year. In July of 2021, the agency also identified fraudsters claiming to be regulatory executives and that were soliciting fees from investors to settle fake claims.
In response to a rise in unregulated trading websites, the CySEC is urging all clients to consult its register of authorized platforms before opening an account. We have also listed the best CySEC regulated trading platforms.
To make sure you sign up with a licensed brand, there are a few tips to follow:
Firstly, look at the disclaimer at the bottom of a broker’s website for details of its regulatory status. The top brands also have a dedicated webpage that outlines their regulatory position and lists their license number. You can then check the firm is on the CySEC register.
It’s also worth checking out reviews before you register for an account. Our reviews, for example, break down regulatory details and offer insights into how trustworthy and reliable a brand is.
Register for an account or read our accompanying reviews below to get started.