Belgium’s Financial Services and Markets Authority (FSMA) today issued a warning regarding the risks associated with the activities of so-called prop trading firms.
The latter are parties that trade for their own account and offer consumers the opportunity to play a shadow investment game, a practice that costs money and can lead to reckless behaviour.
Prop trading (short for proprietary trading) firms make it possible for consumers to trade in financial products such as shares, bonds, commodities, cryptocurrencies, CFDs and forex products without having to use their own money to do so.
Before consumers are allowed to trade in financial products for a prop trading firm, they have to meet a series of challenges. These courses are not easy, not cheap and often consumers have to take, and pay for, several of them before they can successfully…
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