NBS warning: Forex
Národná banka Slovenska (NBS) warns the public that the Slovak financial market is seeing an increase in trading in foreign currencies and in various foreign-currency derivatives, also known as foreign exchange (forex) trading.
Forex trading is often promoted to the public by persons who have not been granted the appropriate authorisation to perform this activity. Their lack of professional competence often leads to them underestimating the risks associated with this type of trading and they also completely fail to inform consumers about its risks. This unprofessional behaviour leads to a situation where ordinary clients and investors trading on the foreign exchange market are exposed to excessive risks of financial loss and usually also lose a significant part of their investments. In some investment strategies, investors may lose more funds than their initial investment.
Therefore, NBS would like to remind the public that marketing or trading foreign currencies or the various foreign-currency derivatives may only be performed by entities which have been granted a banking authorisation for this activity or similar authorisation for payment services issued by Národná banka Slovenska or a foreign supervisory authority, or authorisation of a foreign investment firm, and in the case of financial intermediation of these transactions, registration as a tied investment agent.
National Bank of Slovakia
Imricha Karvasa 1, 813 25 Bratislava, Slovak Republic
Tel.: +421-2-5787 2142, +421-2-5865 2142, +421-2-5787 2169, +421-2-5865 2169
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