Trusted & Reliable CNMV Forex Brokers in Spain
The advent of online trading has made Forex trading an interesting form of investment for the average man or woman on the street. What was once the preserve of major banks and large organizations is now readily accessible for all our readers. It has also made it a form of investment you are able to enjoy from almost anywhere in the world. While online trading has opened things up you should still consider the rules and regulations of your country of residence. Every country has its own set of laws with regards to financial trading. For those of you living in Spain, the regulatory body for the provision of financial services is the CNMV.
What is the CNMV?
CNMV stands for Comisión Nacional del Mercado de Valores, which is the National Securities Market Commission. It is the country’s government agency held responsible for the financial regulation of Spanish securities markets, including Forex brokers in Spain. The agency is independent but falls under the Ministry of Economy and Finance of Spain. As such, the Ministry oversees the work of the Commission and if it feels the need it is able to make changes. The Commission was formed in 1988, which makes it one of the oldest financial regulators in the world. Its formation occurred as part of a major reform of the Spanish financial sector. There were plans afoot to make changes and realign responsibilities for the regulation of the financial sector and it was expected that the Bank of Spain would take over some of the responsibilities of the CNMV. However, that law is yet to be passed. The aim of the Commission is to ensure stability and transparency of financial markets, to protect investors and ensure all participants in the financial service industry act correctly and fair. The Commission is also a member of the International Organization of Securities Commissions (IOSCO) and the Committee of European Securities Regulators (CEST). Which means it is an active participant in the organizations and any working groups.
Best and Most Trusted Forex Brokers in 2018
The role of the CNMV and Forex trading in Spain
The CNMV has a number of roles, but what we’re really interested in is its relation to Forex trading and Forex brokers in Spain. It has the following responsibilities:
- Responding to inquiries and investigating disputes made by traders or individual brokers who are violating national laws or rules of an individual broker
- Issuing licenses
- Issuing penalties for anyone found to be violating financial service laws
- Overseeing the operations of licensed CNMV brokers
What you can do if you have a complaint regarding a CNMV regulated broker
The CNMV is tasked with handling grievances or complaints made by clients of an investment service provider if an investment has been harmed by the conduct of the provider. The first step will be to contact the provider and try to reach a resolution. Should you be unhappy with the outcome the next step is to contact the Financial Ombudsman. Should you still be unable to reach an agreement with the provider the CNMV is able to listen to the complaint.
Always check the validity of a CNMV Forex broker’s license
When you are looking for a Forex broker in Spain you should consider regulation at the top of your list. Always choose a broker that has been licensed and is regulated in Spain. The regulatory body responsible for issuing licenses is the CNMV. You can expect to find a broker’s license details somewhere on the website. Generally, it sits at the bottom of the home page, but occasionally you may find a whole page dedicated to regulation. There have been a number of cases, not necessarily in Spain, but in other European countries where brokers have given false information. We would advise you do your own due diligence and check out the relevant details. It is possible to access the Commission’s register of licensed CNMV brokers in Spain. So you should have no problem checking the validity of any brokers claims. If you can’t find the relevant information contact the customer support department and ask about the license. You should have no problem asking for such information. But. any reticence on the part of the broker and maybe you should consider running for the hills.
CNMV – Spain’s very own financial watchdog
The CNMV takes the regulation of Spain’s financial service industry very seriously. We found several articles pertaining to its ongoing work. One such report relates to its warning list which it uses to keep the Spanish consumer up to date with unregulated Forex brokers. The Commission ensures the protection of investors by giving them as much information as possible. It keeps investors informed and advises against investing with unregulated companies. This is because it greatly increases the risk of high capital losses. Unregulated companies operate outside of the law and without any control from supervisory authorities. Regulation is one of the most important criteria if you’re looking for a Forex broker in Spain. It will ensure your Forex broker has sufficient capital to cover trading losses, will be able to keep your funds in secure and segregated accounts, and provide a fair trading environment. This means your trades will be executed at the prevailing market price. Regulatory standards can differ immensely from country to country, but member states of the European Economic Area are compelled to follow MiFID guideline. MiFID (Markets in Financial Instruments Directive) is a European Union law providing harmonized regulation for investment services in all member states. The main objectives of this Directive are to increase competition and consumer protection. The choice of Forex broker is Spain is obviously your own decision. Just remember your capital investment will be at much greater risk if you choose an unregulated broker. There are a number of CNMV regulated Forex brokers to choose from, so you should have no problem finding one which is also able to meet your other trading needs.