de | cn | ru

Market News

Brazil's CVM warns of forex brokers OctaFX, Forexent

Oct 12 2017
By
Jonathan Smith

The Brazilian Securities Commission (Comissão de Valores Mobiliários – CVM), has warned against two unregulated forex brokers OctaFX and Forexent.


 

According to the publication, neither of them is authorized to provide services on trading in securities in Brazil.


 

OctaFX is an offshore forex broker based in Saint Vincent and the Grenadines. It used to be regulated by UK's Financial Conduct Authority (FCA), but not anymore. It is not regulated by SVG's Financial Services Authority, either. Our check revealed that the site octafx.co.uk, which was of the FCA-regulated entity, now redirects to octafx.com of the SVG company.


 

The case with Forexent is a bit more complicated. It is owned by the company G44 Forexent International FZC, which is registered in the UAE. It, however, does not seem to be properly regulated. The broker offers money management trading accounts of the PAMM type and claims to be a partner of Swissquote and the Dubai-based CFMerchants. Swissquote is a well-established, reliable and properly regulated broker, however CFMerchants does not appear to be regulated neither by the Dubai Financial Services Authority, nor by any other regulator.


 

Generally, investing through PAMM accounts is fairly risky, especially with an unregulated company like Forexent.


 

The regulation of the forex industry and the financial markets in Brazil is carried out by two entities: the Central Bank of Brazil and the Brazilian Securities Commission. The c-bank is responsible for the regulation requirements and overseeing the activities of the local banks. On the other hand, the CVM is responsible for ensuring the proper functioning of over-the-counter financial markets and exchanges, the protection of securities holders and consumers against fraud. The CVM is also has the jurisdiction to investigate and punish irregularities on the market.


 

Despite being an attractive market, due to the tight regulation, there are only a handful of licensed forex brokers operating in Brazil, one of them being Saxo Bank. There are also licensed commercial banks offering such services.
 

TAGS: brazil  cvm  warning  octafx  forexent 
Forex
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Market News

SEC brings charges over fraudulent ICO that raised $600,000

Jan 22 2020 17:17:56

  The US Securities and Exchange Commission (SEC) has charged Sergii “Sergey” Grybniak and his company Opporty International, Inc. for conducting a fraudulent initial coin offering (ICO), which has scammed investors of $600,000 with unregistered digital asset securities. Read more

UK's FCA might ban credit card deposits with online forex and CFD brokers

Jan 20 2020 18:21:17

After earlier this month the UK Gambling Commission (UKGC) announced that after April 14th 2020 clients of gaming websites will no longer be able to use credit cards to fund their bets, some experts and analysts say it is high time that the UK's Financial Conduct Authority (FCA) do the same, as quit... Read more

The CNMV remains vigilant, blacklists Forbslab and eTrader247

Jan 20 2020 14:32:21

 Unregulated forex brokers Forbslab and eTrader247, along with several other alleged scammers, have been the latest additions to the warning list of Spanish financial watchdog – the Comision Nacional del Mercado de Valores (CNMV). Read more

Crypto scammer Patrick McDonnell sentenced to 33 months of imprisonment

Jan 17 2020 14:54:19

Patrick McDonnell, CEO of Coin Drop Markets, was sentenced to 33 months in federal prison and also ordered to pay $224,350 in restitution, after pleading guilty to cryptocurrency fraud last year. The Federal court in Brooklyn issued the sentence on Thursday. Read more

UK's FCA expects up to 10% decline of profits in the forex industry

Jan 16 2020 17:47:56

The Financial Conduct Authority (FCA) expects that the new regulations imposed on the retail forex and CFD brokers in the UK will lead to an overall reduction of their profits of between 6% and 10% - a decline which by the year 2021 may reach between 38.5 million GBP and 55.3 million GBP. Read more

UK’s FCA updates its warning list with A.B.Capitals and LincolnFX

Jan 16 2020 16:48:27

  Another bunch of brokers have made it to the warning list of UK’s Financial Conduct Authority since the beginning of 2020. We’ll focus on two of them - A.B. Read more

Coinbase will pay $1 mln to victims of the Cryptsy hack attack

Jan 15 2020 18:06:18

Coinbase, the San Francisco based crypto exchange, has agreed to pay 962500 USD as a compensation  to victims of the Cryptsy hacker attack, in an out of court settlement, court papers reveal. Read more

Clients of FXFINPRO to be invited to file compensation claims

Jan 15 2020 14:32:03

  Clients of now-defunct forex brokerage FXFINPRO will be invited to submit compensation applications by the Investor Compensation Fund (ICF), the Cyprus Securities Exchange Commission (CySEC) announced on Monday. Read more

Australians were scammed for $42.5 mln in 2019 alone

Jan 14 2020 14:08:08

Australians have lost some 61.61 mln AUD (42.5 mln USD) in investment scams in 2019 alone, the latest data of the Australian Competition and Consumer Commission (ACCC) reveals. Read more

Chinese investors lost an average of $20k to crypto scams in 2019

Jan 14 2020 13:06:44

  Chinese crypto investors who have been scammed in 2019 reportedly lost nearly $20k each (134,522 yuan), according to the 2019 Cyber Fraud Trend Research Report, published previous week. Read more

de | cn | ru