Germany’s financial regulator, BaFin, has warned consumers about a string of online trading platforms operating without authorization. The websites, which advertise under the slogan “Smarter trading with zero spreads,” are allegedly offering banking and financial services illegally.

Four Websites Named in Warning

In its statement, BaFin said it has identified migconsults.de, ito-consults.com, gmdfunds.com, and nordgg.com as part of the same group of websites. The regulator said the operators are not supervised by BaFin and have not been granted any authorization to provide financial or cryptoasset services in Germany.

Under the German Banking Act (Kreditwesengesetz – KWG), any company offering financial or crypto-related services must obtain a BaFin license. Firms operating without one are in breach of the law. The regulator urged investors to verify a company’s authorization through its public database of licensed entities before opening accounts or transferring funds.

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Regulator Issues Public Warning

BaFin issued the alert under section 37(4) of the KWG, which allows the watchdog to publicly warn about unlicensed entities. It said the warning aims to protect consumers from potential fraud involving unregulated trading and investment platforms.

BaFin continues to monitor for clone or imitation websites targeting German investors. The regulator said the rise of unlicensed “zero spread” platforms highlights the need for greater caution among retail traders seeking low-cost investment opportunities online.

Expect ongoing updates as this story evolves.

Source: Finance Magnates