BaFin flags FXCM clone firm, thus warning investors about the copycat brokerage going under the brand “FXC Markets.” It is understood that the firm has falsely identified itself as a reliable online trading company.
19 September, AtoZ Markets – The Federal Financial Supervisory Authority (BaFin) is an independent German financial markets’ regulator. It warned investors’ community about a clone firm that has been misrepresenting itself as Forex Capital Markets Limited, which is the UK arm of the multi-asset brokerage FXCM Group.
BaFin Flags FXCM Clone
The German watchdog alleged that the copycat brokerage chosen to operate under the brand “FXC Markets” in a bid to mislead investors and trick them into thinking that the entity is an authorized online trading firm. The name clearly resembles the name of the genuine Forex brokerage, the Forex Capital Markets.
The fraudulent brokerage did not, however, copy the address at which the original company’s offices are located. Instead, it chose to list its address in Majuro, Marshall Islands. The regulator notes that the offices of the genuine firm are located at the following address: 20 Gresham Street, Fourth Floor, London, EC2V 7 JE, United Kingdom.
Just as it is the case with many other scam operations, this fraudulent company illegally assumed the identity of an authorized entity in an attempt to make investors think that it is a legitimate firm. It is also understood that FXCMarkets had been using its misleading name in order to solicit Germany-based traders.
The firm has falsely identified itself as a reliable online trading company. It has also been operating in the market without any valid authorization in place.
The German regulator also notes that clone firms are not new phenomenon in the market. Fraudsters have been growing in terms of the quality of their strategies and in regards to their resources. One of the common tactics utilized by clone scammers is to promote an illegal operation as a reputable company.
BaFin encouraged traders and those considering online trading to exercise extreme caution. In addition, the regulator has strongly advised against investing any money with this specific company.
The regulator made it clear that anyone who opts to sign up with the clone firm should be informed that they will not receive any assistance from the financial authorities in case things go wrong.
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