FCA UK Warns about two unauthorized brokers that appear to target UK-based customers without any valid license issued by the regulator. What do we know about these firms?
22 March, AtoZForex – The key financial regulator of the UK, the Financial Conduct Authority (FCA) has warned investors about two brokerages that came under scrutiny by the regulator for offering trading services to the UK residents without the necessary authorization.
FCA UK Warns about Two Unauthorized Brokers
The UK FCA has cautioned that firms under the names SW1 Options and BECFD have been operating online without any permission from the watchdog. Moreover, the regulator mentions that the firms do not have any association with any FCA-licensed entity.
The FCA added that BECFD was red flagged for operating and targeting the UK citizens without any valid license. The regulator has pointed out that the company is based out of an undisclosed jurisdiction, while it is targeting its clients online via the website www.becfd.com.
In relation to the binary options firm, SW1 Options, the FCA UK has stated that this online firm has been soliciting clients without being licensed to carry out any activities like that.
In the meantime, the UK FCA has been active in relation to the oversight of the Binary Options industry recently. Complementing its list of warnings, the regulator has published a list of 94 firms that offer trading to the UK based investors without any authorization from the officials.
In addition, the FCA has established certain types of rules in regards to the particular Binary Options products, thus following the best practices of the new EU-wide regulation framework, MiFID II.
Earlier last November, the FCA has issued an announcement in regards to the risk of investing in Binary Options. The regulator has called Binary Options “high-risk and speculative products.”
In its release, the UK regulator has drawn the attention of investors to the number of points. For instance, the regulator has highlighted the definition of Binary Options:
“Binary options allow a consumer to make a bet on the value or price of a stock, commodity, currency, index, or just about anything that is capable of being measured in financial terms. The time periods involved tend to be very short (often around 30 seconds to 5 minutes).”
In fact, the data from the FCA indicates that the majority of traders lose money when making bets. The regulator also stated that consumers find it difficult to achieve sustained profits over a series of bets.
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