German Watchdog Alerts Public to FXCM Clone
- The copycat broker operates under the brand ‘FXC Markets’, a name similar enough to Forex Capital Markets.
The Federal Financial Supervisory Authority (BaFin), an independent German regulatory institution, on Tuesday warned investors of a clone firm that has been posing as 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 Capital Markets Limited, the UK arm of leading multi-asset broker FXCM Group.
The BaFin alleges that the copycat broker has chosen to operate under the brand ‘FXC Markets,’ a name similar enough to Forex Capital Markets that it convinced local traders that it was the authorized 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 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 Majuro, Marshal Islands. Clients should note that the licensed firm’s offices are located at 20 Gresham Street, Fourth Floor, London, EC2V 7 JE, United Kingdom.
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, FXCMarkets had also been taking advantage of its misleading name to solicit traders who are based in Germany. The firm not only identified itself as a well-known online trading company under pretenses, but it was operating without authorization as well.
Clone firms are not an unusual occurrence in the industry, as fraudsters have grown increasingly resourceful in recent years. A commonly adopted tactic is for scammers to advertise an illegal operation as a reputable brand or entity.
The German watchdog 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.
The Federal Financial Supervisory Authority (BaFin), an independent German regulatory institution, on Tuesday warned investors of a clone firm that has been posing as 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 Capital Markets Limited, the UK arm of leading multi-asset broker FXCM Group.
The BaFin alleges that the copycat broker has chosen to operate under the brand ‘FXC Markets,’ a name similar enough to Forex Capital Markets that it convinced local traders that it was the authorized 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 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 Majuro, Marshal Islands. Clients should note that the licensed firm’s offices are located at 20 Gresham Street, Fourth Floor, London, EC2V 7 JE, United Kingdom.
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, FXCMarkets had also been taking advantage of its misleading name to solicit traders who are based in Germany. The firm not only identified itself as a well-known online trading company under pretenses, but it was operating without authorization as well.
Clone firms are not an unusual occurrence in the industry, as fraudsters have grown increasingly resourceful in recent years. A commonly adopted tactic is for scammers to advertise an illegal operation as a reputable brand or entity.
The German watchdog 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.