Poland’s financial regulatory body, the Polish Financial Supervision Authority (KNF), today issued a public warning against Depaho Ltd, a Cyprus-based provider of FX, and CFDs products, stating that the firm is not authorized to provide a specific investment service in the country.
Depaho Ltd, operating through its brand name FXGM and domain name www.fxgm.com, is already licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC). Back in 2013, the company purchased the brand name FXGM and the domain name www.fxgm.com from FX Global Markets (FXGM), which in turn renounced its licence in the same year.
As such, we understand that Depaho’s cross border license for the provision of its services to Poland is still valid and the company already maintains its business activities in Poland.
Investment services and activities in Poland may only be provided by companies licensed by the Polish Financial Supervision Authority (KNF), or those licenced in other EU Member States under the MiFID II passporting rights.
How to Prepare for CySEC’s New Tiered LeverageGo to article >>
Bleak metrics about FX traders’ performance
Reports provided to the KNF by the nation’s brokerage houses offering clients the opportunity to invest in the forex market through online platforms revealed that, on average, 79.3 percent of investors showed a net loss from trading.
According to a survey conducted by KNF, the percentage of investors making money from trading in the over-the-counter market averaged 20.7 percent in 2017. But ultimately, 80% of the profitable traders make losses in the long run.
Earlier last year, the Polish police carried out a raid on the Warsaw offices of Amplio Investments, a company that operates call centers for several forex brands, including CFD 1000, VORTEX ASSETS, and MIB 700. Authorities have arrested 20 of the company’s top managers and salespeople.
Officers from the Police Central Investigation Bureau (CBŚP) accused a total of 36 workers of providing investment advice without a license, as well as aggravated fraud, all of which allegedly occurred between 2016 and 2018.