The Central Bank of Ireland has published a warning on its website this Thursday, urging investors to be wary of Trade Capital/Trade Capital Investments LLC, a Switzerland-based company.
According to the statement released by the central bank, Trade Capital is not authorized as an investment firm and is, therefore, not permitted to provide investment advice to residents of Ireland.
Trade Capital, which operates via its website https://tradecapital.com, claims to be a provider of online trading, specifically for foreign exchange (forex), commodities and cryptocurrencies such as Ripple (XRP), Ethereum (ETH) and more.
According to its website: “Trade Capital is a team of devoted enthusiasts bringing transparency and simplicity back to online trading. We are strongly convinced that every motivated person can achieve impressive results striving to improve their skills and being guided by professional traders and financial analysts. Our creed is to provide you with such guidance and all the necessary tools making your trading experience intuitive, rewarding and secure.”
Changing the Face of AML with Self Service AnalyticsGo to article >>
However, as the central bank highlights: “It is a criminal offence for an unauthorised firm/person to provide financial services in Ireland that would require an authorisation under the relevant legislation which the Central Bank is the responsible body for enforcing.”
It also reminds investors that if they invest in an unauthorized firm and something should go awry, such as the company withholding funds, they are not protected and not eligible for compensation under the Investor Compensation Scheme.
Growing Scams in the FX and Crypto industries
Financial scams, particularly in the forex and cryptocurrency sectors are on the rise. If you’re an avid reader here at Finance Magnates, you will see that we report on such scams on almost a daily basis. Only yesterday, we reported that the Financial Conduct Authority (FCA) added nine firms to its warning list – in one day.
And one day before that, the Financial Services and Markets Authority (FSMA) made an even larger update to its website by adding 14 suspected cryptocurrency scams to its website.