You wouldn’t be alone in thinking that the number of scams in the financial industry is never-ending. In fact, it seems like just as one is caught, another one is right there to take its place. This Tuesday, the Australian Securities and Investments Commission (ASIC) has added another two entities to its ever-growing unlicensed companies checklist.
The entities in question are KontoFX, which is also known as NTMT Transformatic Markets OU and Fortune Way Limited, which also goes by the name of FXFWay UK Limited. According to the Australian regulator, these companies are unauthorized to provide financial services in the country.
The majority of the time, if an entity is offering financial services in a country without the proper authorization from the local financial regulator, which is illegal, then it is probably up to no good. Although there might be the rare case when this isn’t true, it is better to keep yourself protected and stay away from any company that isn’t authorized.
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In saying that, many entities, especially scams, will still claim to be authorized, even when they are not. Because of this, it’s important to do your due diligence and check your local regulator to see if a) the company is authorized by the regulator and b) check if there are any warnings against them.
ASIC warns against KontoFX and FXFWay UK
KontoFX, which claims to be a foreign exchange (forex) broker on its website https://www.kontofx.com/. The company allegedly offers an “all in one” trading platform where users can trade forex, stocks, indices, and commodities.
The other warning goes to Fortune Way Limited or FXFWay UK Limited, which operates via its website http://en.fxfway.com/m/index.php. The entity also claims to be a “trusted Broker” that offers contracts for difference (CFD) trading on forex, spot metals, and spot energies. The alleged broker claims to operate in the United Kingdom and Vanuatu and gives 27 Old Gloucester Street, London, United Kingdom, WC1N 3AX as one of its three addresses.