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Is Profitix scam or reliable? FMA issues broker warnings

Samson Ononeme | Aug. 21, 2019
Is Profitix scam or reliable? FMA issues broker warnings

Is Profitix scam or reliable? This broker, as well as Enigma GRC Limited, are now the subjects of the FMA broker warnings.

August 20, 2019 | AtoZ Markets - Sometimes it feels like the number of scams in the foreign exchange (Forex) industry is never-ending. This Wednesday, the Financial Markets Authority (FMA), a financial regulator in New Zealand, has yet again added three more entities on its warning list.

The brokerage firms in question are Dang Kang International Group, a company based in New Zealand, and Profitix and Enigma GRC Limited, domiciled in the United Kingdom. 

Is Profitix and Enigma GRC Limited scam or reliable?

Profitix and Enigma GRC Limited claim to offer trading in various assets such as forex, commodities, shares, indices and more. However, both companies are not licensed by the regulator to operate in the country. For this reason, the regulator urges consumers to tread cautiously when dealing with this company.

We recommend exercising caution before dealing with Profltlx and Enigma GRC Limited as both entities are not listed on the FSPR and are not incorporated in New Zealand. Individuals from Profitix have been contacting New Zealand residents with investment offers and this has the hallmarks of a scam,” the warning published today states.

The New Zealand watchdog has also provided two URLs that the entity operates from – www.profitix.com and www.incomeclass.net. 

British regulator FCA flags Dang Kang International Group

According to the warnings published by the Kiwi regulator, it has blacklisted Dang Kang International Group for falsely claiming on its websites that it is registered, licensed. But in reality, this company is not regulated by the FMA.

As a result, the New Zealand regulator believes Dang Kang International Group, which alleges that it is headquartered in the UK and facilitates forex and contracts-for-difference (CFD) trading to facilitate foreign exchange (forex) and contracts-for-difference (CFD) trading, may be operating a scam.

The FMA provides the following websites as belonging to the entity: https://en.dk-fc.com/ or https://en.dk-tnt.com/ or http://en.fc-dkg.com/ or http://en.dk-fca.com/ or http://en.d-fca.com/.

DangKang International Group Limited (DKFC) is headquartered in the UK and its management has years of industry experience. Adhering to the tenet of “transparency” and “convenience”, the company takes multiple measures to build a benchmark image of foreign exchange trading. Customer funds are stored in independent trust accounts, and the security of funds is guaranteed,” the website states. This statement is at odds with the FMA broker warnings.

It is worth mentioning that the FMA is not the first regulator to blacklist Dang Kang. Back in July 2019, this company has also come up on the British watchdog’s radar. The Financial Conduct Authority (FCA) had issued a warning against the company, stating it was a clone firm.

Also in July, the FMA also blacklisted a crypto-related company that promises unrealistic returns or failing to get a required certificate of incorporation from local authorities.

Think we missed something? Let us know in the comments section below.

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.