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Switzerland’s FINMA warns of forex brokers ECN Capital, Swiss Magnates

Oct 31 2017
By
Jonathan Smith

 The financial markets and services providers regulator of Switzerland – FINMA – has warned of two unregulated forex brokers – ECN Capital and Swiss Magnates.


FINMA, in its typical curt style, does not provide much information of the reasons why it has blacklisted those two companies, but usually them being unregulated, is a good enough reason.


ECN Capital claims to be based in New York city and offers trading in CFDs on forex pairs, futures, stocks and commodities. There is no regulatory information and most likely ECN Capital is a scam. As per the US legal requirements, any forex broker in the country must be registered as a member by the US National Futures Association and is supervised and registered by the governmental Commodity Futures Trading Commission. ECN Capital apparently is not, so it must be avoided at all costs.


Currently in the US are operating three retail forex brokers: Gain Capital, Oanda and TD Ameritrade. They are properly registered and regulated by the relevant authorities. The fourth one on our list - Interactive Brokers - in practice has stopped offering forex trading to retail clients in the US.


The other forex broker FINMA warns against is Swiss Magnates. It allegedly offers trading in forex, stocks, bonds, ETFs, indices and commodities on a proprietary trading platform. Our check in the Google Play store revealed that the mobile application at least, is not very popular, if at all. There are less than 20 installations and not a single review. As with ECN Capital, Swiss Magnates does not provide any regulatory information either. Most likely this one is also some kind of scam, trying to mislead the clients with the “Swiss” in its name, suggesting the broker is based in Switzerland, i.e. is reliable by association.



TAGS: finma  switzerland  ecn capital  swiss magnates  warning 

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