Don't Confuse FxPro with Fx Pro, Warns UK Regulator

The Financial Conduct Authority (FCA) has warned that fraudsters are using a clone firm to impersonate multi-asset retail brokerage FxPro brand, a Cyprus-based and FCA regulated platform, and targeting people in the UK.

To this end, the clone firm Fx Pro was trying to usurp the names and other legal information of FXPRO UK Limited and refer consumers, for example, to the official website of the FCA to try to convince them that they are indeed the authorized firm.

The original broker, which began trading in 2007 and is jointly regulated by the UK’s FCA and Cyprus’ CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term, is a former sponsor of Fulham and Aston Villa football clubs. Further, FxPro is an established broker that once was planning a potential initial public offering. Although the broker was hoping to follow the listing of its rivals, such as CMC Markets and IG, it had canceled float plans after the FCA introduced stricter rules for activities of firms selling CFDs to retail customers.

Clones target FCA itself

FXPRO clone had also been taking advantage of its misleading name to solicit traders who are based in the United Kingdom. The firm was not only identifying itself as a well-known 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 company under false pretenses, but it was operating without authorization as well. Consumers are thus deceived, thinking they are dealing with a regulated entity.

The City watchdog said in recent statements that it saw an increasing number of cases of the problem and that FX brokers are particularly vulnerable. The FCA pointed out that a common hallmark of fraud, which are claims of too-good-to-be-true gains, is often in place with this type of scam too.

Ironically, some clone scams contacted the FCA claiming to represent regulated firms and asked to change the legitimate company’s contact details on the register, saying details were out of date. As per usual, this action aims to make the clone firm appear genuine and give their own phone number and website details to potential victims so that traders will mistake it for the legitimate entity.