The Financial Conduct Authority (FCA), the United Kingdom’s regulatory authority, has alerted local investors that OneTrade brokerage appears to have another company deliberately and illegally identifying under the same name. The British regulator further warns that only the original online trading firm is authorized to offer financial services in the United Kingdom.
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According to the warning on the FCA’s website, the clone company has assumed the name of the registered firm. This tactic is how illegitimate brokers fool clients, drawing in individuals unaware of the scam. The FCA has also advised against funding an account and trading with any unlicensed broker, as there is an elevated risk of the latter running a scam operation.
Clone companies are a growing trend, and the FCA has been involved in exposing unauthorized companies’ true identity. Last Thursday, the British financial watchdog issued a warning against a clone broker impersonating Blackrock Asset Management UK Limited. The changes the clone firm made were quite subtle, such as dropping the ‘UK Limited’ from the brand’s name, and changing the website address from .com to – .ga.
Last week, the FCA issued a warning against a company which had been identifying itself as ADS Securities, a forex and CFDs brokerage that is well-known in Europe and the Middle East. The week before that, a clone of Forest Finance drew the attention of the regulator.