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FCA warns of FXCM UK clone

FCA warns of FXCM UK clone

June 20, 2019 | AtoZ Markets – Once again, the British financial watchdog updates its warning list of scammers.

The FCA has issued a warning, in which it unveiled that a forex broker does not hold their license.

Under the name of “FXCM Germany”, the unlicensed firm was said to have been posing as the regulated firm Forex Capital Markets Limited, the UK arm of leading multi-asset broker FXCM Group, to claim that they were a new branch of the aforementioned company in Germany.

It is no secret today that the forex trading sector has witnessed many fraud cases, especially over the last couple of years.

Very recently, the UK financial regulator also added to its blacklist CWG Markets forex broker.

On Wednesday, 19th June, the Uk regulator published on its website a warning, in which it said that CWG Markets forex broker are a clone of another FCA-regulated firm, “to try to convince people that they work for a genuine, authorised firm.”

The clone firm referred to above has no association with the FCA registered firm CWG Markets LTD, as per the warning.

Some of the defrauding methods scammers use

Financial regulators warn of cloning practices scammers and fraudsters usually follow, which include copying the registration details of the cloned company, so that they appear credible to traders and entrepreneurs.

Most scammers introduce their websites to the public under the name of “investment management services and advice”, which is open itself to a wide range of services that can pour loads of money into its bank account.

The FCA has recently warned as well of a new trend fraudsters follow, introducing themselves as “forex educators”, as some cases were cited.

Financial regulators always advises traders to check in with the websites of the regulatory authorities to check if a broker was having a license or not.

 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.