UK FCA Warns on XTB Broker Clone

Monday, 21/03/2022 | 21:41 GMT by Felipe Erazo
  • The firm is offering crypto services without FCA's authorization.
  • The watchdog recently issued a warning about an unlicensed crypto provider.
FCA

The UK financial regulator, the Financial Conduct Authority (FCA ), warned on Monday that a financial company is illegally operating in the country and allegedly cloning XTB.

According to the advisory published on its website, the British watchdog believes xtbtradingfx.com may be providing financial services in the UK without their authorization. “This firm is not authorized by us and is targeting people in the UK. You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong,” the FCA warned.

The broker’s name seems to be a clear reference to XTB, a broker that belongs to XTB Group, whose branch in the UK, XTB Limited, is regulated by the FCA. However, it does not clone any of the logos or services offered by XTB Group. In fact, XTB Trading promotes itself as a crypto services provider based in London.

“Dealing with financial firms that are authorized or registered by us gives you greater protection if things go wrong,” the watchdog pointed out. “If you used an authorized firm or registered firm, access to the Financial Ombudsman Service and FSCS protection will depend on the investment you are making, the service the firm is providing, and the permissions the firm has. If you would like further information about protection, the authorized or registered firm should be able to help,” the FCA added.

Recent FCA Warnings

Recently, Finance Magnates reported that the FCA warned about Alpha Crypto Trade FX Ltd, as it is not an authorized company to provide financial services or products in the country. According to the advisory organization, the company is allegedly targeting people based in the United Kingdom.

Alpha Crypto Trade FX Ltd is operating under a US-based address, and its website remains functional.

The UK financial regulator, the Financial Conduct Authority (FCA ), warned on Monday that a financial company is illegally operating in the country and allegedly cloning XTB.

According to the advisory published on its website, the British watchdog believes xtbtradingfx.com may be providing financial services in the UK without their authorization. “This firm is not authorized by us and is targeting people in the UK. You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong,” the FCA warned.

The broker’s name seems to be a clear reference to XTB, a broker that belongs to XTB Group, whose branch in the UK, XTB Limited, is regulated by the FCA. However, it does not clone any of the logos or services offered by XTB Group. In fact, XTB Trading promotes itself as a crypto services provider based in London.

“Dealing with financial firms that are authorized or registered by us gives you greater protection if things go wrong,” the watchdog pointed out. “If you used an authorized firm or registered firm, access to the Financial Ombudsman Service and FSCS protection will depend on the investment you are making, the service the firm is providing, and the permissions the firm has. If you would like further information about protection, the authorized or registered firm should be able to help,” the FCA added.

Recent FCA Warnings

Recently, Finance Magnates reported that the FCA warned about Alpha Crypto Trade FX Ltd, as it is not an authorized company to provide financial services or products in the country. According to the advisory organization, the company is allegedly targeting people based in the United Kingdom.

Alpha Crypto Trade FX Ltd is operating under a US-based address, and its website remains functional.

About the Author: Felipe Erazo
Felipe Erazo
  • 1036 Articles
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About the Author: Felipe Erazo
Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.
  • 1036 Articles
  • 42 Followers

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