The United Kingdom’s Financial Conduct Authority (FCA) on Wednesday shed light on an FX firm representing itself as CFD Stocks, warning that the unregulated firm has no association whatsoever with any FCA-licensed entity and is operating without authorization.
The watchdog added that the company was flagged for offering a variety of currency trading services and targeting UK citizens without a license.
The FCA pointed out that CFD Stocks is based out of an undisclosed jurisdiction while soliciting its clients using the website https://www.cfdstocks.com.
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The denouncements follow a suite of similar blacklistings over the last few months. Under the guidelines, companies offering to trade in derivatives to UK investors require licensing and oversight from the FCA.
Accordingly, the regulatory body has been cracking down on unregulated and unauthorized firms, surveying the trading environment to ensure such firms are not soliciting or marketing products to its residents.
The FCA’s alerts, however, are provided as an early warning service to investors, but not as a substitute for clients doing their due diligence on the entity in question.
The FCA has waged war on unregistered online trading firms and clone companies, and the number of brokers on its blacklist continues to grow. Last month, the British regulator highlighted another one, called Gainmax Capital – a forex brokerage firm that has been falsely claiming registration.