SMN
Austria’s regulator Finanzmarktaufsichtsbehörde (FMA) issued a warning for two unauthorized forex brokers – Kapital & Wert Bank AG and its subsidiary Zug FX. According to the watchdog, they are not entitled to provide in Austria investment services requiring a license.
Kapital & Wert Bank has provided a business address in Vienna. On its website it claims it is one of the market leaders in forex and CFD trading for institutional investors that started operating in 2004. It also says it has EUR 2 billion in funds under management, offers a leverage of up to 1:400 or maximum of EUR 500 million per client. The company also provides services in wealth management both for private investors and corporations.
According to its website, Kapital & Wert Bank AG is regulated by Austria’s FMA and UK’s FCA. A check on FCA’s website revealed that it is regulated in another European Economic Area (EEA – EU states, Iceland, Norway and Liechtenstein). It can offer certain products or services in the UK and must meet minimum standards agreed across all EEA countries.
The subsidiary of Kapital & Wert Bank AG, Zug FX has provided a business address in London. It seems to be offering algorithmic forex trading via “a private client account”. The performance fee is 20% monthly, but can be reduced for accounts over GBP 100 000. The minimum required deposit is GBP 2500. Zug FX shares the same UK FCA registration number with Kapital & Wert Bank AG.
The last posts on the Facebook pages of both brokers is from October 26, 2015, as is the last tweet of Kapital & Wert Bank.
