The Financial Services and Markets Authority (FSMA), Belgium's financial market regulatory watchdog, flagged 21 online trading platforms offering unlicensed services in the country. A clone of Webull, a popular US trading platform for retail investors, is one of them.

Webull Clone in Belgium's FSMA Warning

Belgium's FSMA says the list contains potentially fraudulent companies and advises against using their services. Contracts for difference (CFDs), forex (FX) brokers and cryptocurrency platforms were among them. Some of these include Binotrader, Globale-Invest, Itoro-Capital, STB Markets and Webull Investing, a clone of US regulated Webull trading platform . At the time of writing, the clone website (webullinvesting.com) is still operating, offering retail CFD trading.

A complete list of 21 unlicensed, potentially dangerous platforms and websites is available in the FSMA's official announcement.

FSMA notes that the trading platforms use aggressive marketing strategies on social media and online video platforms. Some also exploit mobile apps and affiliate programs to attract as many victims as possible.

"These platforms act very aggressively. Scammers even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims," the FSMA commented.

Watch the recent FMLS22 panel titled: "Regulation Roundup: Everything You Need to Know for 2023."

FSMA, FCA and CySEC Warn against Clone Firms

As reported by Finance Magnates three months ago, FSMA warned against another clone of a well-known brand in the trading service industry, namely CoinDesk. Although, CoinDesk is a popular crypto trading news website, a company's clone that offers cryptocurrency trading is potentially dangerous, especially for beginners and less experienced investors.

A clone is usually a firm that impersonates another popular trading brand looking to attract unsuspecting customers. To do so, it may use a similar name, website layout or even commit identity theft using the exact address details and license numbers.

Other popular financial market regulators, including Cyprus' CySEC and the UK's FCA, recently reported on other clone offers. According to CySEC's announcement in February, an unregulated cryptocurrency firm, IMS Crypto, falsely claimed to possess a CySEC trading license, using the details of the authorized company, Initial Merit Secure Ltd, which operates a different website address.

In the meantime, the British regulator issued a warning against AXI Corp Limited, a clone firm of the registered forex and CFD broker Axi and its sister company, One Financial Markets. According to the FCA, while the clone firm is located in Leadenhall Street, London, the two authorized firms are based at 1 Finsbury Market, London.