Best CMVM (Portugal) Regulated Forex Brokers 2019
Portugal has an extremely qualified regulator of financial markets and yet there are lots of scammy and unregulated brokers around. If you are based in Portugal you should trade with a CMVM broker. Here we outline the best brokers that you can feel confident about working with.
Introduction to CMVM Regulation
CMVM stands for The Portuguese Securities Market Commission, which is an independent financial institution whose main objective is to regulate financial markets and protect investors trading with brokers and investment companies in Portugal. The CMVM is also part of the European System of Financial Supervisors (ESFS) and of the National Council of Financial Supervisors. In implementing its regulation CMVM follows both local laws as well as European ones, particularly MiFID directive. Founded in 1991 it has been acting indepedently without government funds but fees from its services to certified brokers, investors and other financial institutions in need of advice, supervision or assistance to various legal bodies in regards to financial markets.
The main CMVM responsibility is to supervise and regulate securities and other financial markets. The regulator supervises all the market participants by trying to detect, prevent and act against any illegal activities in the markets. It strictly monitors how investment agencies and Forex brokers comply with laws and regulations set by Greece government and well as European Commission. Having spotted anything illegal CMVM takes legal action and punishes the transgressor with fines. After careful check it grants licenses for both individuals and organizations to operate in the markets with strict caution to comply with the set of regulatory rules, control risk and protect their customers trading through them. Finally, it lists (on their website) the companies that are certified to legally act as brokers and those that try to fly under the radar.
How CMVM Regulation Protects You
As the primary goal of CMVM is to protect investors, they have developed the Investor Compensation Scheme and Deposit Guarantee Fund. These two bodies help you if you happen to lose money trading with one of CMVM certified brokers due to broker‘s fault. Do not expect this protection if you trade with an unregulated broker. This protection applies also only to individual investors, not companies. You can be compensated up to 25 thousand US dollars in case of broker‘s foul play, bankruptcy or any other illegal activities that have caused damage to your funds. Finally, the regulator has a special department called: Investor Assistance and Communication Department, where you can file a complaint against a specific broker if you think that you have been defrauded or there is a confilct that you cannot solve with the broker.
Guidelines for CMVM Regulated Brokers
All financial bodies under CMVM supervision have to provide all cooperation that they are requested of. They should also be ready to both ‘on-site’ and ‘off-site’ checks for determining how well the intermediaries comply with the regulations set for them. Failure to comply will lead to reprimands, severe fines and even revoking of licenses.
- New Zealand
- South Africa
- South Korea
- Hong Kong
- United Arab Emirates
- Russian Federation
List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA, FSB, MAS||Israel||$100||Open Account|
|CySEC, FCA, FSB, IFSC||Cyprus||$5||Open Account|
|ASIC, FCA, FSB||United Kingdom||$300||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|FCA||United Kingdom||$100||Open Account|