Refuse to Pay Profits! Unlicensed Broker Raceoption was Warned by CNMV

Since many regulatory bodies took actions to further tighten forex regulations, many licensed brokers run much harder to maintain its services and make profits, usually including the prominent increase of costs. Under this circumstance, many unlicensed brokers figure out ways to appeal investors by claiming its good conditions like top-notch trading platform and guaranteed withdrawals processing. Besides, some of the brokers are also warned by global regulators for its forex offerings but without any legal licenses.

Recently, BrokersView learned that the forex broker Raceoption was warned by 2 regulators, and attracts investors to deposit but refuses to pay any profits.

Refuses to Pay Any Profits

Some clients of Raceoption have posted their trading experience with the broker.

One of the clients said that the scammer stole $1500 from him and deleted his account with an excuse of suspicious activity. He wrote, "Never gave me a reason, never tried to contact me, just deleted my account and took whatever profits they(Raceoption service men) could. "

Another investor named Nikki Nikk posted that Raceoption locked him out of his account and stole $500 from him. The scammer kept his money and doesn't let him withdraw his money.

Warned By Two Global Regulators

From the information we hold, we found that Raceoption was warned by two regulators- CNMV(Spanish regulator) and CMVM(Portugal regulator).

On 1 July 2019, CNMV Issued a warning against the unregistered broker IQcent. According to the release, CNMV warns that: RaceOption(www.raceoption.com/) is not authorised to provide the investment services detailed in Article 140 of the Spanish Securities Markets Act, which include investment advice, nor to provide the auxiliary services detailed in Article 141(a), (b), (d), (f) and (g) of said Act in relation to the financial instruments detailed in Article 2 of said Act, including, for those purposes, foreign currency transactions.

On 12 February 2021, CMVM issued a warning for investors concerning RaceOption with the website https://raceoption.com/. according to the warning- RaceOption is not authorised to carry out any type of financial intermediation activity in Portugal, under Article 295(1)(a) and (b) of the Portuguese Securities Code.

The CMVM clarified that this entity is not legally qualified to carry out advertising or prospecting for clients aimed into financial intermediation contracts.

To be able to offer forex trading service, the broker must get the necessary license(s). As the information we hold, the RaceOption runs without any regulatory licenses, therefore it does not regulate forex trading. A broker offers trading without licenses means it doesn't respect the laws and become a fraudulent broker.