New Zealand’s financial services and markets regulator, the Financial Markets Authority (FMA), has published a warning against the unregulated forex broker MRTMarkets.
In its message FMA says that the broker is not authorized to provide services to residents of New Zealand, but there have been complaints against it.
This is not the first time MRTMarkets is warned against. Last December, within a few weeks two European regulators – France’s AMF and the Cyprus Securities and Exchange Commission have also put the broker on alert lists of unauthorized entities. So did Italy’s CONSOB.
MRTMarkets claims to be based in London, but does not appear to be regulated by UK’s FCA. The broker offers trading in forex and CFDs on the popular MetaTrader 4 platform, with a maximum leverage of 1:500.
As a general rule, it is highly advisable to avoid dealing with unregulated brokers. Quite often they turn out to be a scam that rips off people of their money. Even if the broker is not fraudulent, in does not offer the high level of customer protection required from regulated companies.