FCA Issues Scam Warning Against Retail Broker CFDPremium

Britain’s financial regulator has continued its ongoing efforts to warn the general public against fraudulent and unauthorized entities. The City watchdog today warned against a provider of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term products called CFDPremium.

CFDPremium is targeting UK investors offering a full range of offshore investment services, including CFDs on Bitcoin, Litecoin, and other crypto assets, but the City watchdog stressed the registration claims on its website is a fake and the firm is not authorized to do business in the UK.

Britain’s Financial Conduct Authority, or FCA, keeps a closer eye on firms selling high-risk and speculative investments to retail clients following recent actions by its European peer to supervise sales of contracts for difference (CFDs).

Measures to restrict the marketing CFDs to retail clients, which mainly applies to regulated providers, were put forward by the European Securities and Markets Authority (ESMA) back in 2018.

The FCA was also concerned that firms might consider getting around ESMA’s measures through their overseas brands or by selling other similarly complex or highly-leveraged products. The City watchdog said, in common with other European regulators, it was aware that other products could create the same kinds of risks to consumers as CFDs.

Most recently, the FCA has warned investors are turning to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to “get rich quick” despite not understanding what they are purchasing. Many of those interviewed perceived crypto assets as a shortcut to easy money and wealth while they overestimated their knowledge of virtual asset class. For example, many crypto enthusiasts said they wish to buy a whole Bitcoin, not realizing they could buy just part of one.

Earlier in January, the Financial Conduct Authority also highlighted its concerns over financial promotions that falsely implied that all of a firm’s activities were regulated by the FCA or other regulators, when in fact they were not.