CNMV stands for the Comisión Nacional del Mercado de Valores, or National Securities Market Commission. This is a government agency of Spain in charge of the securities markets and financial regulation in the country. The agency is independent within the Ministry of Economy and Finance. The CNMV was established in 1988 under a regulatory framework to meet the EU criteria. The Commission has played a crucial role in the Spanish Stock market by introducing stronger measures for the protection of investors. The main role of the CNMV is to secure a transparent and fair financial market which grants stability, consumer protection, and instruct intermediaries and brokers to behave correctly. One of its duties includes assisting the EU Commission in evaluating financial sectors of EU candidate countries. Since Spain is an EU member state, it also has to comply with the EU primary and secondary legislations, including the MiFD which is directly associated to securities and the financial market.
Forex Trading in Spain
Spain is also a very desirable destination for Forex broker companies given that many Spaniards are attracted by the potentially lucrative and profitable business opportunities.
One of the things that give traders security is definitely well-regulated conditions for trading. A clear policy on business conduct which protects investors form violations is what traders and investors need. All EU countries, including Spain, have set solid ground rules and detailed regulations which define the best practices for the Forex companies. The Spanish market is a well-regulated one with the 4th largest economy in the Eurozone by GDP statistics. It is designated as a high-income economy and therefore it is no surprise that the Forex industry flourishes to some extent in this country
CNMV Registered Brokers: Making Sure Laws Are Observed
Forex is a risky market, not only by the nature of the industry but also because many companies operate under false pretenses. That was the main reason why the majority of the countries have established legal bodies or organizations for the issuance of licenses, especially in the Forex market. The Forex market will probably always remain one of the markets where you could come across a bad broker who just wants to steal your investments. Thanks to the many agencies, like the CNMV in Spain, traders and investors get to enjoy legal protection against their broker. CNMV makes sure that the Spanish market runs smoothly with no misleading Forex companies who attract customers by false advertising. CNMV registered brokers are not allowed to step outside the legal framework defined to protect investor and traders. The CNMV enjoys a great reputation among Spanish traders who mostly trust a CNMV broker. The registration requirements are not that simple; a broker has to provide sufficient capital to cover potential and real risks. The minimum capital requirement is defined by the CNMV in Spain. Brokers are also not allowed to make false advertisements which say one thing but mean another one. It is strictly forbidden to mislead the traders. Many international companies, as well as national, have found the ideal working ground in Spain.
Why Choose CNMV Regulated Forex Broker?
Regulation is extremely important for all types of financial institutions and when you are looking to make monetary transactions you should always make sure it is with companies who are licensed and actually work within a legal framework. This is exactly where CNMV fits in, as it is their duty to make sure every Forex transaction done in Spain is clean and transparent, and there is no shady business going on. The obligations and responsibilities that CNMV has in relation to the Forex market include:
- Control of Forex brokers as to the securities on the market
- Looking into any disputes or claims that brokers, traders or other individuals may make regarding Forex trades made with CNMV regulated brokers.
- Issuing of official licenses that allow Forex traders to legally operate within Spain.
- Penalization of any companies or individuals who break or bend the laws of Spain in regards to Forex trading.
Finding Your Broker in Spain
Top Forex brokers in Spain, will first of all be CNMV approved and state that they are licensed on their website. If you cannot find the license or registration number of a broker, then it would probably be for the best to skip that broker altogether. The brokers who do own a CNMV seal will always put it in a visible place, and checking with the CNMV site will easily confirm that the company actually holds the seal. Most companies who don’t have the seal will not display it, but the true con artists may still display a false seal to scam the more naïve traders. Once you are sure a site has the CNMV seal, you can relax and start looking at the other factors that constitute a Forex trader, such as the amount of bonus money you can receive, the payment methods they accept and the variety of trades you can make with them.
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Join Forex Market in Sunny Spain
Trading Forex in Spain, one of Europe’s most well developed economies is very easy. You can jump right in today with one of the CNMV regulated brokers and start making serious cash off your understanding of the forex market. Remember that the Forex market is still a very young one, and full of those trying to take advantage and get rich fast. This is why seeking well regulated brokers is of ultimate importance and if you are trading with a Spanish broker, looking for CNMV license is the way to make sure you are dealing with a solid broker.