FCA UK Warns about FXCM UK clone firm, which has attempted to convince traders in the UK that it was the authorized online trading firm that has reached out to them. Is your brokerage reliable?
6 April, AtoZForex – The UK financial regulator, Financial Conduct Authority (FCA) has unmasked yet another fraudulent entity operating on the UK market. This time, the watchdog has exposed a clone firm that has been misrepresenting itself as Forex Capital Markets Limited, the UK branch of multi-asset broker FXCM Group.
FCA UK Warns about FXCM UK Clone Firm
The FCA has stated that it believes that a clone broker has chosen to entitle itself as “FXC Markets” in a bid to pose as Forex Capital Markets. The entity has attempted to convince traders in the UK that it was the authorized online trading firm that has reached out to them. However, the illegal brokerage did not assume the office address of the original company, as it has decided to provide an address in Majuro, Marshall Islands.
According to the FCA, the clients should be aware that the offices of the legitimate company Forex Capital Markets are located at the following address: 20 Gresham Street, Fourth Floor, London, EC2V 7 JE, United Kingdom.
Following on this, this instance appears as yet another case of scam operation where an unlicensed company purports to steal the identity of an authorized company in order to mislead investors.
In addition, FXC Markets has taken advantage of its name in order to solicit traders who are based in the UK. The firm has identified itself as a well-known online trading company. It also has been operating without any authorization.
Clone Firms in the UK
The FCA notes that clone firms are not a rare case in the financial industry, as the number of fraudulent firms has been on the rise these years. One of the most common practices for scammers is to promote an illegal operation as a trustworthy brand.
The UK regulatory body has urged investors and traders to exercise caution, adding that it is not recommended to deal with the above-mentioned company. Anyone who opts to sign up with the clone should consider that they will not be protected by the FCA and they won’t receive the financial assistance if things go wrong.
Think we missed something? Let us know in the comments section below.