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Is UFX scam or reliable? FMA issues UFX broker warning

Samson Ononeme | Apr. 17, 2019
Is UFX scam or reliable? FMA issues UFX broker warning

Is UFX scam or reliable? The question arises as the Financial Markets Authority (FMA) has added UFX Global Limited to its warning list.

April 17, 2018 | AtoZ Markets - The financial regulator of the New Zealand, the Financial Markets Authority (FMA) has issued a warning on the brokerage firm UFX Global Limited on Wednesday, April 10 in a bid to protect residents of the country from scam. The entity is the subsidiary of UFX markets, UFX bank, UFX trade.

FMA issues UFX broker warning

The government agency responsible for financial regulation issued a warning on its official website warning investors against dealing with this entity as the registration and regulatory information provided on their website is false and misleading, hence UFX Global Limited could be involved in financial fraud.

The online brokerage firm is headquartered overseas and operates via its website www.ufx.com but is allegedly registered in France. A visit to the website reveals what the broker claims:

"We are regulated by the Vanuatu Financial Services Commission under licence number 14581."

While this company operates offshores, the FMA has stated that they have no business in New Zealand as they appear not to be regulated by the aforementioned overseas regulator.

UFX Global Limited appears to be targeting New Zealand residents through online advertising. However, the financial watchdog reiterated that this broker is not a New Zealand-registered financial services provider and is not authorized to issue derivatives in the country. New Zealand’s FMA has recently issued several other scam warnings.

FMA warns against brokerage firm Stella Markets

Recently the Austrian financial regulator issued a warning against another Forex broker Stella Markets.

Along with the cryptocurrencies and Forex, the Stellar Market claims to provide commodities, stocks, equities, and metals for trading. The broker also states that it is “unrivaled” in the financial trading market by a “distant margin”.

The entity is the subsidiary of Goldstone Group Ltd and based in the St. Vincent & the Grenadines, according to the warning published. However, the FMA warning against the Forex broker Stella Markets says that Stella Markets saying;

“is not entitled to carry out banking transactions in Austria that require a license. The provider is therefore neither permitted to trade on a commercial basis on its own account or on behalf of others (Article 1 para. 1 no. 7 BWG).”

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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.