BaFin Alerts Public: Unregistered FX Brokers Investigated

German financial regulator BaFin has flagged several online brokers operating without proper authorization in February 2024. These entities lack the required clearance under the KWG to engage in banking activities or offer financial services.

Among those singled out is fx-flat.com, a platform purportedly providing financial and investment services. However, BaFin's investigations reveal that the operator lacks the necessary authorization and targets Italian visitors despite claiming to be based in Germany. Notably, the website lists details belonging to FXFlat Bank GmbH, raising concerns about its legitimacy.

Another entity, Bankwiz, operates via bankwiz.io without proper authorization, indicating a similar lack of compliance with regulatory standards.

heptagoninvestments.net and heptagoninvestments.org also fall under scrutiny. These websites offer financial services without the required authorization, with BaFin highlighting the operator's repeated identity theft. The entity falsely represents itself as Heptagon Capital LLP, an FCA-regulated firm. BaFin previously issued a warning against heptagoninvestments.com on January 19, 2024.

Alliance Market Group operates via alliancemarketgroup.pro without proper authorization, along with Immediate Connect through immediateconnect.ai and capitalmgm.com. Despite claiming to be based in the UK and using variations of “CapitalMGM” in its branding, the latter is not registered with CySEC as claimed.

WolfshagenTrade, operating via wolfshagentrade.ltd, and FX-GlobalMarkets, operating via fxmarkets-global.com, also operate without proper authorization. BaFin previously warned against a similar entity, global-fxmarkets.com, on November 9, 2023.

LINQ Capital, presenting itself as LINQ Capital, operates via linq-capital.net without the necessary authorization. Despite claiming to be located in Richardschester, UK, investigations reveal no such town exists.

Lastly, FCapital24 operates via fcapital24.eu without proper authorization. BaFin previously warned against fcapital24.com on December 4, 2023.

Investors are cautioned by these BaFin alerts and are advised to use care when interacting with internet brokers. Investors run the danger of suffering financial losses as well as possible fraudulent activity while operating without the required permission.

It is recommended that investors confirm the authenticity of internet brokers using regulatory database searches and make sure the brokers are licensed to do business. Moreover, you may mitigate the risks associated with unregulated enterprises by exercising caution and doing thorough due diligence before collaborating with any financial service provider.

Protecting investor interests and maintaining the integrity of the financial markets are the two main goals of BaFin's surveillance and investigative efforts in financial services sector organizations.