A major theme in 2014 has been the appearance of so-called clone companies mimicking real entities and claiming to be licensed by credible regulators. The U.K. Financial Conduct Authority is amongst the most trustworthy regulatory bodies in the world and also a very frequently abused one.
The latest entity claiming to be regulated in the UK is FXGL Capital. The website is translated into several languages, mainly European – English, Spanish, French, Portuguese, Italian and Arabic.
According to some forum posts on respected Spanish boards, representatives from the website have been “cold” calling prospective customers and offering them outrageous rates of return on managed accounts. With monthly return rates ranging between 5% and 15%, the clients of the brokerage have been asked to pay 25% of the profits for commission.
However, according to a forum member alleging to be a victim, after a request to withdraw his funds from an account which had grown in value, the FXGL Capital client’s calls and emails have been ignored and his deposit is nowhere to be seen.
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A similar story with promises of extraordinary returns on a French forum, coupled with the FCA warning, raises sufficient alarm bells especially in the context of the utterly unprofessional message which is published on the website of FXGL Capital.
“FXGL Capital is proud to announce the upgrading of the new regulation FSA – England, in order to keep its privileged status for reputable business ethics and regulation of a country that has not suffered from the economic crisis, has decided to tighten its regulatory laws,” the message states.
Not only the new UK regulator is the FCA instead of the FSA, but the company also alleges on its website that it receives liquidity from HSBC, Barclays, Credit Suisse, Meryll Lynch, Morgan Stanley and UBS.
The UK regulator strongly advises the public to avoid dealing with the entity behind FXGL Capital and to conduct thorough due diligence before opening an account with any brokerage.