Is MaxCFD reliable? According to the FCA MaxCFD warning, the entity has been providing professional investment services to the UK residents without any authorization to do so.
21 February, AtoZForex – The UK Financial Conduct Authority (FCA) has published a warning for investors on its website. The UK regulator aims to caution investors’ community against dealing with one of the unauthorized firms operating on the territory of the UK. The firm under the spotlight is the entity representing itself as MaxCFD.
Is MaxCFD reliable? FCA MaxCFD Warning Details
According to the regulatory notice, MaxCFD has been providing professional investment services to the UK residents without any authorization to do so. The UK FCA further warns that this firm has no association with any of the FCA-regulated entity. In addition, the watchdog mentioned that the first has been flagged for operating and targeting UK-based investors without an appropriate license.
MaxCFD operates online via https://www.maxcfd.com/. A visit to the website of the broker reveals that the firm has claimed to have an office at the following address: 20-22 Wenlock Road, London, N1 7GU. The FCA notes that it is a normal practice for fraudulent companies to falsify the address in order to gain the trust of investors.
FCA XMarkets Warning
FCA warns that in case you are an investor, you should definitely be aware of the fact that Financial Ombudsman Service and the Financial Services Compensation Scheme are not available if you deal with an unauthorized company or individual.
The regulator has been quite active in protecting the investors from being scammed by fraudulent entities recently. One of the latest warnings from the FCA comes on the 15th February. The regulator has warned against dealing with XMarkets.
The UK watchdog further stated that XMarkets has been providing financial services or products to the UK-based investors without any authorization to do so. This implies that the firm did not have regulatory permission, as per the FCA official statement.
However, the UK FCA notes that all individuals and firms that intend to promote or sell financial services or products in the UK need to have the authorization by the FCA.
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