FX Traders’ Umbrella Service / The Risks of Trading for Clients Without the Proper Authorisation
The Risks of Trading for Clients Without the Proper Authority from the Regulator
Trading for clients in financial markets is a significant responsibility, requiring strict adherence to regulatory standards. Operating without the proper authorisation exposes you to severe risks, including:
Substantial Financial Penalties: European regulatory authorities impose fines that reach millions for individuals or companies trading for clients without authorisation.
Legal Action and Criminal Charges: In many jurisdictions, trading for clients without a valid authority is considered a criminal offence, punishable by prison sentences of up to seven years.
Loss of Client Trust and Reputational Damage: Clients expect their traders to operate legally and transparently. Without the appropriate authorisation, your credibility and ability to retain clients are at serious risk.
If you trade on behalf of clients, becoming a duly authorised FX signal provider is essential for protecting your business and building trust. Chelton AB offers a streamlined solution through its umbrella service, ensuring compliance, risk management and operational security.
What is an Authorised FX Signal Provider Service (AFSP)?
Chelton’s AFSP service provides a ready-made compliance framework for those trading FX on behalf of clients. This comprehensive solution allows you to:
√ Operate Under Chelton’s Legal Framework: Avoid the complexities and costs of obtaining your licence by leveraging Chelton’s existing registration and authorisation.
√ Simplify Compliance: Chelton handles the intricate requirements of compliance and risk management so you can focus on managing your clients’ investments.
√ Enhance Credibility: Clients trust providers of an authorised and respected organisation, giving you a competitive edge in the market.
This service is ideal for FX traders looking to operate legally without the burden of navigating complex licencing processes independently.
Risk Disclosure: Trading the financial markets on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to open a trading account, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading financial instruments, and seek advice from an independent financial advisor if you have any doubts.
Privacy Policy: We are committed to ensuring that your information is secure. In order to prevent unauthorised access or disclosure, we have put in place suitable physical, electronic and managerial procedures to safeguard and secure the information we collect online.
Chelton Wealth will not accept any US, Australian or Canadian residents with following exceptions: US: those clients that qualify as an ECP (Eligible Contract Participant); Australia: those clients that are defined as “wholesale clients” under the Corporations Act 2001; Canada: those clients who meet the “Permitted Client” criteria.
Under no circumstances will Chelton Wealth accept any clients from the following restricted jurisdictions: Ukraine: Crimea, Donetsk and Luhansk. Russian Federation and Belarus. Afghanistan, Burma (Myanmar), Central African Republic, Côte d’Ivoire, DR of Congo, Cuba, Eritrea, Ethiopia, Haiti, Iran, Iraq, Japan, Liberia, Libya, North Korea, Sierra Leone, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Yemen, and Zimbabwe.