The Capital Markets Authority (CMA) has granted a license for an online currency trading broker to SCFM Limited. This is the second license issued by the regulator, the first was issued to EGM Securities Ltd in 2018.
What non-trading online Forex brokers essentially do is make a trading platform available to clients to enable them to trade from anywhere and anytime using their electronic devices. The platform provides access to global markets and also offers clients the opportunity to learn about global financial markets. Non-trading online Forex brokers do not offer advice to clients or trade on behalf of their clients.
Clients deposit the amount of their investment into an account offered by the broker. The trader (client) is responsible for the execution of transactions – the buying and selling of all products on the platform and the required risk assessments are undertaken to determine the suitability of clients to participate in forex trading in line.
SCFM Limited is a wholly owned subsidiary of SM Capital Markets Limited, a company registered in Cyprus. SM Capital Markets also has another subsidiary, Scope Markets, which is registered in Belize. SM Capital Markets Limited is authorized and regulated by the Cyprus Securities and Exchange Commission with a cross-border license to provide investment services internationally. SM Capital Markets provided a capital injection to SCFM Limited to cover the paid-up capital of the non-trading online currency broker license