The United Kingdom’s regulatory body, the Financial Conduct Authority (FCA), has warned investors of a clone firm that has been posing as Forex Capital Markets Limited, the UK arm of leading multi-asset broker FXCM Group.
The FCA alleges that the copycat broker has chosen to operate under the name ‘FXCM Germany,’ a name similar enough to FXCM UK Limited that it convinced local traders that it was the authorized online trading firm that had contacted them.
The illegitimate broker, conversely, did not assume the address at which the original company’s offices are located. Instead, it opted to claim an address in Germany. Clients should note that the licensed firm’s offices are located at is 4th floor, 20 Gresham St, London EC2V 7JE, England.
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Clone firms are not an unusual occurrence
As per usual, this seems like yet another instance of a scam operation where an unlicensed company illegally assumes the identity of an authorized company so that traders will mistake it for the legitimate entity.
Furthermore, the FXCM clone had also been taking advantage of its misleading name in order to solicit traders who are based in the United Kingdom. The firm was not only identifying itself as a well-known online trading company under false pretenses, but it was operating without authorization as well. That alone is a major violation of British law.
Clone firms are not an unusual occurrence in the industry, as fraudsters have grown increasingly resourceful in recent years. In a cloned scam, the fraudsters copy or “clone” a legitimate website. The copy of the website can be astonishingly exact, or just an approximation with copied logos, but the intent is ultimately to separate victims from their money, credit card number, or login credentials.
The FCA encourages traders or those considering online trading to exercise caution, strongly advising against funding an account or investing via this specific company. Anyone who chooses to sign up with the impostor should bear in mind that they will not receive the financial authorities’ assistance should things go awry.