Japan’s Financial Services Agency (FSA) updated its list of unregistered financial services providers by adding the forex broker Sumo Forex. The list contains the names of companies targeting Japanese investors, without having the necessary licenses.
According to its website, Sumo Forex is based in Auckland, New Zealand and is a “world renowned and True ECN forex broker“ that offers trading in forex, indicies, futures and commodities. Trading is done on the Meta Trader 4 and cTrader platforms. The company also offers demo accounts, and three types of live accounts: standard, PRO ECN and cTrader ECN. The minimum deposit is $200 and the maximum leverage is 1:500.
A check in New Zealand’s Financial Services Providers register reveals, that Sumo Forex is a registered entity and has permission to trade financial products or foreign exchange on behalf of other persons. It is also a member of the Insurance & Financial Services Ombudsman Scheme for dispute resolutions, as required by law. The company is also filing regular confirmations, as required by the New Zealand legislation and has done so in November 2015. The registration, however, does not necessarily mean the company is regulated in New Zealand or elsewhere.
This is not the first time Sumo Forex is in the sights of the financial regulators. In January this year Canada’s Ontario Securities Commission also issued a warning against them, noting that the company is not permitted to solicit Ontario residents.