The Capital Markets Authority (CMA) has granted a license for a non-dealing online forex 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-dealing Online Forex Brokers basically do is avail a trading platform to clients to enable them trade from anywhere and at any time using their electronic devices. The platform provides access to global markets and also provides an opportunity to clients to educate themselves on the global financial markets. Non- dealing Online Forex brokers do not offer client advice or trade on behalf of their clients.
The clients deposit their investment amount with an account to be offered by the broker. The trader (client) is responsible for executing trades – buying and selling of any products on the platform and the requisite risk assessments are undertaken to determine suitability of clients to participate in online forex trading.
SCFM Limited is a fully owned subsidiary of SM Capital Markets Limited which is 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 Cyprus Securities and Exchange Commission with a cross border license to offer investment services internationally. SM Capital Markets has given a capital injection to SCFM Limited to cover the non-dealing online foreign exchange broker license’s paid up capital