The Financial Services Commission of Belize (IFSC) has warned that financial companies FXPrivate Company and MT Capital Partners have not been authorized to provide forex brokerage services in Belize, two separate notices by the IFSC indicated on Friday. Both companies have received a cease and desist order and can no longer provide any unlicensed financial activities in the country.
Both FXPrivate Company and MT Capital Partners have been removed from Belize’s International Business Companies (IBC) Register of companies incorporated in Belize. FXPrivate Company was removed on 1 January, 2016, and MT Capital Partners was dissolved on 13 January, 2016.
FXPrivate Company provides online forex trading services. It has offices in Ukraine and is present in Asia, Africa, the Middle and Far East, as well as in the Commonwealth of Independent States (CIS) countries, according to data published by the broker.
MT Capital Partners, on the other hand, operates on the capital markets and has offices in Belize and the UK. Neither of the two companies provides information about registration or authorization on their websites.
The Belize financial watchdog keep a list of financial service providers registered and regulated in the country. Investors can look up any broker to check whether it holds a Belizean license and whether it falls under the regulation of the IFSC.
Belize is known as an offshore destination for forex brokers. The local regulation is not as strict as in other places and the requirements for acquiring a license are more liberal than in most countries. Moreover, incorporation costs are significantly lower in Belize and brokers need to present unimpaired capital in the minimum amount of $100,000.
Many forex brokers choose to register and be regulated in Belize since the provision of a license there requires them to meet fewer and softer criteria and to comply with less strict rules and requirements than if they registered in other countries. A forex broker license attracts traders as it bring them confidence and safety in choosing a broker.
We strongly advice you to be cautious regarding your investments and to only choose brokers and investment companies that are regulated by reputable financial watchdogs, such as the CFTC, CySEC, FINMA, FCA, etc.