ActivTrades is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, shares, indices, cryptocurrencies, ETFs, commodities, and bonds. It also supports multiple trading platforms and tools such as MT4, MT5, ActivTrader, and Tradingview.
ActivTrades is regulated by several authoritative bodies such as SCB, FCA, CMVM, BACEN, and CVM. However, ActivTrades is not regulated by the FINMA ( The Financial Market Supervisory Authority). In this article, we will explore ActivTrades’ regulations, and its features, and provide a list of alternative brokers that are regulated by FINMA.
Does ActivTrades Operate Under FINMA?
No, ActivTrades does not operate under FINMA (The Financial Market Supervisory Authority) regulation. However, the broker is regulated by several other reputable financial authorities including SCB, FCA, CMVM, BACEN, and CVM. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the FINMA in Switzerland.
What Other Regulations Does ActivTrades Have?
SCB (Securities Commission of The Bahamas):
ActivTrades is also regulated by SCB. Established in 1995, SCB regulates and oversees the financial services industry. The SCB ensures that ActivTrades follows guidelines for maintaining adequate capital, protecting client assets, and ensuring transparent operations for clients from various regions, particularly those outside Europe and Australia.
CVM
ActivTrades is regulated by the Comissão de Valores Mobiliários (CVM). The CVM, established in 1976, is Brazil’s securities and exchange commission, responsible for regulating and supervising the securities and financial markets.
The CVM ensures that ActivTrades adheres to rigorous standards for transparency and security, particularly for clients in Brazil. This includes requirements for proper management of client funds, keeping them separate from the company’s assets, and maintaining regular financial reporting. CVM’s oversight helps protect investors and ensures that ActivTrades operates with integrity and trustworthiness in the Brazilian market.
CMVM
ActivTrades is regulated by the Comissão do Mercado de Valores Mobiliários (CMVM) in Portugal under license number 3991. Established in 1991, the CMVM is responsible for overseeing financial markets and firms in Portugal, ensuring they operate within a secure and transparent framework.
The CMVM mandates that ActivTrades comply with rigorous standards of financial conduct, including the maintenance of sufficient capital reserves, the protection of client funds, and the transparency of its operations. This involves keeping client funds in segregated accounts, separate from the company’s own assets, and adhering to strict reporting requirements.
Regulation by the CMVM provides an added layer of security for clients, as it ensures that ActivTrades operates with integrity and fairness. This oversight fosters a high level of trust among clients in Portugal and throughout Europe, ensuring that their interests are protected in the competitive forex trading environment.
BACEN
BACEN operates under the regulatory oversight of the Central Bank of Brazil (Banco Central do Brasil, BACEN), which is responsible for supervising financial markets and institutions in Brazil. BACEN, established in 1964, plays a key role in maintaining financial stability, ensuring that firms like BACEN comply with the necessary legal and financial requirements.
Under BACEN’s regulation, BACEN is required to meet stringent financial guidelines, including maintaining adequate capital reserves, segregating client funds, and ensuring transparency in its financial operations. These measures help protect clients’ funds and ensure that BACEN operates with integrity and in accordance with local regulations. BACEN’s oversight contributes to the reliability and security of BACEN’s services, reinforcing trust among clients in Brazil and across the region.
Best FINMA Regulated Forex Brokers: Alternatives to ActivTrades
ActivTrades is one of the leading forex and CFD brokers. The broker is not regulated by FINMA. It is regulated by other top-tier regulators including SCB, FCA, CMVM, BACEN, and CVM. There are several FINMA regulated brokers that can serve as alternatives to ActivTrades. These brokers include:
Affiliate Table: 5 FINMA-Regulated Forex Brokers
These brokers operate under FINMA regulation. According to FINMA rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about FINMA-regulated forex brokers, you can read our content on the best FINMA -regulated forex brokers.
How Can I Verify If My Broker is regulated by FINMA or Not?
How Can I Verify If My Broker is FINMA Regulated?
Here’s a detailed explanation of how to verify if your broker is regulated by FINMA, with expanded paragraphs under each subheading:
1. Find the Broker’s Name:
The first step in verifying your broker’s regulatory status is identifying their legal name. This information is typically available on the broker’s official website under sections like “About Us” or “Legal Information.” Make sure you’re using the broker’s full legal name, not just the brand name, as companies often operate under multiple names or subsidiaries. Having the exact name ensures an accurate search when you look up their registration with FINMA.
2. Visit the FINMA Website:
Once you have the broker’s legal name, visit the official website of FINMA. The Swiss Financial Market Supervisory Authority maintains a public register where you can find all authorized institutions and individuals. This register is a reliable source for confirming the legitimacy of brokers and other financial institutions operating under FINMA’s supervision. You can access it through this link: FINMA Licensed Institutions and Persons Page.
3. Enter the Broker’s Name:
On the FINMA website, you will find a search bar designed for checking the authorization status of financial firms. Enter the broker’s full legal name in this search bar. Make sure you input the name exactly as it appears on the broker’s official website. A precise search is crucial to ensure you are checking the correct entity, as some brokers may have similar or overlapping names.
4. Select the Category:
To refine your search and get the most relevant results, choose the appropriate category from the drop-down menu. For forex brokers, you should select “Banks and Securities Firms” as the category. This narrows down the search to firms that are authorized to offer forex and other securities trading services under FINMA’s regulation. Selecting the right category helps avoid confusion with other types of financial service providers.
5. Check the Broker’s Information:
Once the results are displayed, examine the broker’s profile on the FINMA website. Compare the information provided by FINMA with what’s available on the broker’s website. Look for details like the broker’s full name, address, and license status. It’s important to confirm that the broker is authorized as a bank or securities firm by FINMA, as this is a key requirement for offering forex trading services in Switzerland. If the broker is not listed or does not hold the necessary license, you should be cautious, as they may not be legally allowed to provide forex services. In such cases, it’s advisable to avoid dealing with that broker
Frequently Asked Questions ( FAQs)
What is ActivTrades?
ActivTrades is an online forex and CFD broker that offers MT4, MT5, and the ActivTrader proprietary web and mobile trading platforms. Alex Pusco founded ActivTrades as a stock brokerage in Switzerland in 2001. Later he moved to London in 2005. The broker added MetaTrader 4 in 2007. It also added CFDs on indices and commodities to its offer in 2008. ActivTrades offers over 45 currency pairs, Indexes, ETFs, as well as Commodities and Shares CFDs for your personal investment and trading options..
Is ActivTrades Considered Safe?
Yes, ActivTrades is considered safe. ActivTrades is not regulated by FINMA. However, The broker is regulated by other reputed regulatory authorities including SCB, FCA, CMVM, BACEN, and CVM. These regulations ensure strict compliance with industry standards and provide protection for client funds.
