SFC Warns Against Forex Broker Trading Banks

Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), today issued an update to its Alert List featuring the names of businesses that are unlicensed in Hong Kong and which are believed to have targeted Hong Kong investors.

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Unlicensed Entity

Trading Banks is the latest brokerage to make it onto the SFC’s website which reveals a growing list of firms that have been flagged by the watchdog for breaking its rules. The addition follows a further warning issued last month against TCA Financial which again was added as an unlicensed entity after providing inaccurate contact details on its website.

The firm under the spotlight is an international Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker offering of a range of trading services including forex, metal trading and CFDs which is located at Gorg Borg Oliver St, Suite 4, Number 62/63, Morina Court St. Julians, Malta.

According to the regulator, the brokerage represents that it is a brand owned and operated by Grizzly Limited but uses a bank account in Hong Kong in the name of Unit Group (HK) Limited for settlement.

Upon further investigation of this broker’s website, the smallprint also happens to state that TradingBanks and Grizzly Limited are not licensed or authorized by the MFSA to provide any investment or other financial services in or from Malta, which are required to be licensed or authorized under Maltese law.

This admission together with the SFC’s warning today highlights how susceptible investors may be when it comes to dealing with a financial entity that is not authorised by any jurisdiction, especially when engaging in what may appear to look like a professional Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.

SFC Background

Hong Kong’s financial watchdog plays an important role in informing investors about potential scams by drawing attention to illicit operations and unregulated entities that market participants should refrain from doing business with.

Its latest warning about Trading Banks is part of its efforts to clamp down on unlicensed businesses soliciting their services in Hong Kong.