New Zealand’s Financial Markets Authority (FMA) has posted a warning on its website today which has flagged White Square Trading Limited. According to the warning, the regulator has received a report from a New Zealand resident that the company is conducting unauthorized trades and withholding funds from its clients.
White Square Trading Limited operates under the trading names Universe Markets and Universe Markets FX. According to its website, the company is an alleged forex broker who claims to offer investors the chance to trade CFDs.
The FMA has warned that White Square Trading and any of its trading names are not registered to provide financial services in New Zealand. Furthermore, the regulator suggests it has the characteristics of a scam.
White Square Trading allegedly operates from 131-151 Great Titchfield Street, London W1W5BB. The broker offers its services through the following websites: www.universemarkets.com, www.universe-markets.com, www.universemarketsfx.com. The watchdog urges anyone who has had contact with the broker to contact the regulator.
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FCA Blacklists White Square Trading Limited
The warning from the FMA follows a previous warning from Britain’s Financial Conduct Authority (FCA). Back in May this year, the UK regulator urged traders to avoid investing with this broker.
This is because it was also not authorized in the UK to provide financial services to residents. The watchdog also warned it could be knowingly running an investment scam. The FCA also cautioned investors to avoid dealing with this broker and only trade with companies in the UK that have been authorized by them.
White Square Trading is one in many companies operating throughout the world without licenses. In recent times there has been an increase in scams, such as clone firms and unauthorized brokers offering financial services.
This is because the techniques of scammers have become more advanced. In particular, they are more likely to use social media to recruit clients than the traditional cold-calling. As a result, this has increased their exposure. Therefore, traders need to remain vigilant when considering whether to invest with certain companies.