On September 11, 2023, the Comisión Nacional del Mercado de Valores (CNMV), Spain’s National Securities Market Commission, issued a warning to the public regarding the unregistered firm VirtuafxTrade.
According to the CNMV, VirtuafxTrade is not authorized to provide investment services or activities, including foreign currency transactions, under the Spanish Securities Markets and Investments Services Act (Law 6/2023, of March 17).
For a detailed review, you can read the comprehensive VirtuafxTrade Review.
Key Information
- Company Name: VirtuafxTrade
- Warnings Issued By: CNMV
- CNMV Warning Date: September 11, 2023
- Regulatory Authority: Comisión Nacional del Mercado de Valores (CNMV)
- Reason for Warning: Not authorized to provide investment services or activities in Spain
Details of the CNMV Warning
The CNMV has clarified that VirtuafxTrade does not have the necessary authorization to operate in Spain.
This restriction includes providing investment services related to the financial instruments detailed in Article 2 of the Securities Markets and Investments Services Act.
The CNMV advises investors to exercise caution and avoid engaging with firms that lack proper authorization.
Risks Involved
Engaging with unregistered firms like VirtuafxTrade poses significant risks to investors.
These entities are not subject to regulatory oversight, which means they do not comply with the standards and protections required by Spanish law.
As a result, investors may face substantial financial losses without any legal recourse.
Recommendations for Investors
- Verify Authorization: Always check if a firm is authorized by the CNMV before engaging in any investment activities.
- Conduct Thorough Research: Investigate the company’s background, read reviews, and ensure it complies with regulatory requirements.
- Exercise Caution: Be wary of firms that promise high returns with little risk and are not transparent about their regulatory status.
The CNMV strongly advises investors to perform due diligence and remain vigilant to protect their financial interests.
If you have been approached by VirtuafxTrade or have already engaged with them, contact the CNMV for guidance and support.
Additionally, the Financial Conduct Authority (FCA) in the United Kingdom has also issued a warning against VirtuafxTrade on July 31, 2024.
More details on the FCA warns against VirtuafxTrade.
For any inquiries or to verify the authorization status of a firm, contact the CNMV enquiry line at 900 535 015 or visit the CNMV website.
By staying informed and cautious, investors can better safeguard their assets from potential fraud and high-risk investment schemes.
