Belgium’s FSMA Issues An Warning Against Finiko

Belgium's Financial Services and Markets Authority (FSMA) has released a warning notice that suggests the public to be alert to companies that offer trading software (Expert Advisors), including Finiko.

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Expert Advisors, or popularly known as EAs, are used to automate the trading of the forex, CFDs and other derivatives by telling users when to make certain trades or even carrying them out automatically, based on preprogrammed parameters.

The FSMA found that these trading software companies operate in a pyramid structure and incentivize users to introduce new members. In exchange, users will receive compensation in the form of a commission or discount on the price of the software package.

The Belgian regulator noted that these trading software businesses are active on social media and usually target young and inexperienced traders promising a luxurious lifestyle.

“These companies do not have an authorization to offer financial services and products in Belgium,”the regulator stated.”The FSMA also wishes to emphasize that distribution of certain financial instruments that are available via the software (such as CFDs, forex and crypto-derivatives) is prohibited in Belgium.”

As Fazzaco reported earlier, the FSMA has released a warning notice that suggests the public to be alert to various companies that are selling training in Belgium​.