Bafin warns against foreign trading platforms
Federal Financial Supervisory Authority (Bafin) has warned against entering into transactions, particularly involving CFDs (contracts for difference), binary options and so-called forex-trading, via online trading platforms operated by unlicensed providers.
The regulator has named three providers of illegal trading platforms: Gum Ltd. (www.sternmarkets.com) and Pairs Ltd. (www.weissfinance.com), both based in the Marshall Islands. The third company is the BP1 LP (www.sternoptions.com) based in UK.
All platforms lack the permission to trade required under section 32 (1) KWG.
“If a website is in German, offers customer support in German and German telephone numbers are provided, this does not necessarily mean the company is domiciled in Germany,” said the authority.
The operating companies usually do not hold authorisation to target the German market or to conduct business in Germany.