The Financial Conduct (FCA), the United Kingdom’s regulatory authority, has issued a warning that the firm TraderVC is offering financial advice and online trading services despite its lack of authorization. The forex and CFDs brokerage’s actions are in breach of UK law.
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According to the statement, TraderVC is an online trading company which claims two office locations, one being in London, England and the other in Sofia, Bulgaria. Because the firm is unregistered, the British regulatory body strongly advises against trading or investing funds with it. This stems from unauthorized operations raising added concerns of brokers being involved with or running a scam under the guise of a legitimate online investing environment.
Recent Warnings against Unauthorized Brokerages
The FCA has waged war on unregistered online trading firms and clone companies, and the number of brokers on its blacklist continues to grow. Yesterday, the British regulator alerted traders to a clone company identifying as OneTrade, a firm that has been authorized to offer services in the United Kingdom. The registered broker was likely targeted by the copycat company due to its FCA license.
There was also the incident involving Market Capital Limited, which trades as FX Markets Capital. The forex brokerage has apparently offered online trading and other financial services without being authorized by the FCA. Soliciting services of this nature within the United Kingdom in this way is landing brokers on the FCA’s ever-growing warning list.