Another Clone Firm Comes Up, FCA Warns Against Fake FXC Markets

FXCMarkets had been taking advantage of its misleading name in ‎order ‎to solicit traders who are based in the UK.

The ‎Financial Conduct Authority (FCA) today exposed ‎another fraudulent entity, this time bringing to light a ‎clone 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 brand ‘FXC Markets’, a name similar enough to Forex Capital Markets that it convinced ‎local traders that it was the authorized online trading firm that had contacted them.‎

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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.‎

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Furthermore, FXCMarkets had also been taking advantage of its misleading name in order ‎to solicit traders who are based in the United Kingdom. The firm not only identified 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. A commonly adopted tactic is for scammers to ‎advertise an illegal operation as a reputable brand or ‎entity. ‎

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.‎

Today’s announcement is the latest in the FCA’s series of warnings about clone firms posing ‎as legitimate approved businesses in order to con UK consumers into making payments for ‎investment services.‎

The FCA reminded UK investors that clones employ the tactic of adopting a legitimate ‎company’s name when they cold call potential victims. It urges them to be wary if they get ‎contacted by anyone claiming to work for this company.‎

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