5 May, AtoZForex, Lagos – Forex trading is considered a high risk and complicated investment, a fact that many brokers or FX operators fail to disclose to potential clients, like in the case of FMA FXUnion warning. The Financial Markets Authority (FMA) is now taking further steps to fortify the safety of the financial industry by issuing warnings against offshore firms. Even so, the FX industry is plagued by a large number of scam brokers, looking to exploit people’s desire for vast, quick profit.
Unregulated activities
In many cases as well, brokers operate in certain regions without the due authorization to do so. Such activities therefore put individuals who deal with such companies at risk. Because there will be no regulator overseeing the activities of such firms, hence, they can decide to act in dubious manners without being held accountable. The latest of such a case discovered by the New Zealand financial regulator is as regards United Global Holdings Limited, trading as FX United. This firm plies its services via the Websites: www.fxunited.com and www.fxunitedpowerinternational.com. Through which they offer brokerage activities in the FX market as well as other financial market. Evident from the firm’s statement: "The clients of FxUnited are offered a wide range of trading instruments to trade on the Forex market. The possibility to enter the Forex international market, world stock market, precious metals and futures markets enables traders to get the highest profits from trading."
FMA FX United warning
The FMA has however shown absolute disapproval of FXUnited’s activities, prompting the FMA FX United warning as the regulator clarified that:
The FMA has received reports that United Global Holdings Limited, trading as FX United, has been falsely claiming that the FMA has endorsed the company as being legitimate and highly regulated. The FMA does not confirm legitimacy or endorse any entity in this manner. We recommend NZ consumers exercise caution when dealing with any business claiming to be endorsed by the FMA.
Investors are therefore urged to be wary of dealing with the unregulated FXUnited, as the activities of the financial firm is not authorized. Stay tuned with AtoZForex for the latest updates of the FMA.
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