Our research about Finomarkets shows that it has been blacklisted by a financial regulator and that is why we are publishing this warning.
What is Finomarkets
Finomarkets is a cryptocurrency trading platform. To open an account, you will need to make a deposit in Bitcoin, Ethereum or Litecoin. Users have access to account analysts that will help them with trading.
Official website: https://www.finomarkets.com
Address: 251 Southwark Bridge Road, London, SE1 6FJ, United Kingdom
Contact information: [email protected], +44 1268 437995
Is Finomarkets legit?
Based on our research we have to say that Finomarkets is not legit. The reason for this conclusion is that it has been blacklisted by a financial regulator for providing unauthorized investment services.
The warning about Finomarkets
The financial regulator that has warned the public about Finomarkets is the BCSC, see the full alert HERE.
The BCSC had this to say about Finomarkets: The company is trading CFDs, Forex and cryptocurrencies and it is accepting British Columbia residents as clients. But it is not authorized in British Columbia to trade in, or advise on, securities or derivatives.
Why this warning is important
Financial regulation is key to maintaining orderly markets. Every country has at least one independent regulator that oversees financial markets to ensure that customers of investment services are protected.
No regulation is perfect, but it provides at least basic protection to consumers. In the investment world, regulation often ensures that clients’ funds are segregated from the money of the company, that there is transparent pricing of traded assets, that the company is not in conflict of interests, etc.
Simply put, there are rules that investment companies have to follow and regulators make sure that they follow them.
In some countries, deposits with investment companies are even insured. This means that if the company, for example, a broker, goes bankrupt, clients still get their money back from an insurance fund.
For all the reasons mentioned above the risks with regulated companies are far smaller than with the ones that are not regulated. There are many, many more scams among unlicensed and unauthorized investment services.
Therefore, to stay on the safer side, it is always better to trade and invest only with regulated companies. Only with platforms that are licensed by regulators to provide the services they are offering.
You should educate yourself about financial regulation in your country and use only investment and other financial services that are authorized in your country by relevant authorities.
Is Finomarkets a scam?
Finomarkets being blacklisted by a financial regulator, namely by the BCSC, does not necessarily mean that it is a scam. Unless it is explicitly said in the alert.
But it is important to know that every time there is a reason for a company to be placed on a warning list by a financial authority.
There must have been an impulse for the regulator to investigate Finomarkets and conclude that the public must be warned about it. Like complaints from users or suspicion, for example. Most often it’s testimonials from users who have bad experience with the service and have to complain.
Some investment projects just overlook their duties as far as financial and investment laws are concerned, some are outright scams that just avoid regulation.
In this review, we report on the alert that the BCSC published about Finomarkets. So for a conclusion about whether it is a scam or not you can contact directly this financial authority.
They should be able to explain with more details why they published the warning. For example, if it was initiated by bad user experience or something else.
In our experience, to stay safe, it is better to avoid all companies and investment services that have been blacklisted by financial regulators.
You can also contact the national financial authority in your country and ask it about Finomarkets to see what they have to say.
In conclusion about Finomarkets
Finomarkets has been the subject of a warning from the BCSC, which is a financial regulator. So there is a problem with it, and that is why you’d better stay away from it.
If you have doubts about Finomarkets, just ask a licensed investment advisor and/or the national financial authority in your country to get a professional opinion.