Italy’s financial regulatory body CONSOB issued on Monday a warning notice against forex companies Nemesis Capital Ltd. and Nemesis Capital BG Ltd. for operating in the country unauthorized. Neither of the companies is not authorized to provide any type of investment services in the country.
The regulator provided no details. The two companies are doing business asforex brokerage brand AlfaTrade, which has previously been subject to warnings from several other regulatory bodies. Nemesis Capital is based in St. Vincent and the Grenadines and Nemesis Capital BG is registered in Bulgaria. The offshore company owns and operates the AlfaTrade brand and website, which its Bulgarian affiliate serves as a payment service provider for the broker.
AlfaTrade offers three types of accounts for trading in forex and contracts for difference (CFDs) on metals and indices – Standard, Premium, and VIP, with minimum deposit requirement of $500, $5,000 and $50,000, respectively. They are available via the MetaTrader 4 (MT4) platform. All three accounts offer leverage of up to 200:1 and a minimum trading size of 0.1 lots.
AlfaTrade has made its way to the warning lists of the regulators of Bulgaria (FSC) and Canadian provinces Ontario (OSC) and British Columbia (BCSC). All three times the broker was accused of providing services without being authorized.
In Italy, as in any other EU member, financial intermediaries, including forex brokers, are not allowed to operate without the proper authorization from the local authorities or the relevant regulator of any other EU country. If a broker is licensed in any EU member state, the license allows it to provide services in the rest of the union.
When engaging with unauthorized and non-regulated brokers, traders are putting their investments at higher risk. We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.