The newest update to the Financial Conduct Authority's (FCA) warning list comes with two names of the Forex brokers. FCA warning against ECN Markets and CMS Trader is published, keeping the UK investors informed. Is your broker reliable?
FCA warning against ECN Markets
One of the Forex brands operates under the name ECN Markets with its customers’ accounts being controlled by ECN Markets Payment services. The company is maintained by ESCW Ltd., 788-790 Finchley Road, London NW11 7TJ, UK. As it is indicated on their website, http://ecn-markets.com/, the firm is located in Auckland with its customer services entities in New York and London. Smaller satellite offices are also present in other locations.
As it usually happens with fraudulent firms’ schemes, ECN Markets was aiming at the new coming inexperienced investors, who have no knowledge about the regulatory license necessity. In order to lure in the investors, the fraudulent unregulated company has stated on their website:
“ECN Markets has the obligation under international Investment law to protect client interests. As a result, the Company has taken all necessary measures to protect client funds.”
The other update to FCA’s warning list comes with the name of CMS Trader Forex broker (the trading name of Pandorx Ventures Limited). The firm is reported as unauthorized by FCA, therefore, is forbidden to solicit to UK residents. However, the fraudulent firm is offering the access to Saudi stocks trading as well as the traditional forex and commodities instruments to UK based investors.
The official warning from the British watchdog states:
"We believe this firm has been providing financial services or products in the UK without our authorisation."
The following addresses appear to be the ones of CMS Trader’s offices: 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ; 44 Waterloo Station, Waterloo Road, London, SE1 8SW. The company operates online via http://www.cmstrader.com.
How to protect yourself from being scammed
As FCA warning against ECN Markets and CMS Trader are reported, it is necessary to mention that these firms’ attempts to scam investors are not the first ones but amid many others, as wrongdoers try to deceive money market participants applying illegal tactics and equivocal details.
Therefore, the UK’s regulator notifies investors to be cautious when they receive cold calls. Also, the FCA recommends investors to only use services of firms that are regulated. To verify if the company is authorized or not one can visit Financial Services Register website.
AtoZForex has reached out to both of the firms and currently is waiting for the answer. We will update you as soon as we get the official information.
See also: Why is oil price falling today?
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