Italy’s financial markets regulator CONSOB has warned that the forex brokers Cac400, Mib700, FXChoice and TradeFintech are not authorized to offer their services in Italy.
Additionally, CONSOB warns that the binary options broker InnovateMarkets is not licensed to operate in Italy either.
Our check revealed that neither of the listed brokers, except FXChoice, is regulated. CAC400 is based in the offshore zone Vanuatu, Mib700 is owned by a company from Estonia, while TradeFintech says it is located in the UK, but is not regulated by the FCA.
FXChoice, however, is regulated by the Belize International Financial Services Commission (IFSC). Despite the Belize license, though, FXChoice is obviously not authorized to operate in Italy, because it dose not have a EU license.
The InnovateMarkets binary options broker says it is based in London and provides contact phone numbers in the UK and Russia. The company, however, is not regulated.
Generally, we advise our readers to avoid dealing with unregulated brokers or companies based in offshore zones like Vanuatu, which practically do not have any serious requirements for the companies. Dealing with an unregulated broker is much riskier than with a properly regulated one, as it does not offer any client protection and more often than not does not abide by any rules and requirements.