The Financial Conduct Authority (FCA) recommends avoiding to do any kind of business with a couple of unregulated forex brokers claiming to be incorporated in the UK. The UK regulator has announced on its website that both FXN Trade and Net CFD are believed to have provided financial services or products in the UK without its authorization.
The unregulated forex brokers claim to be registered in Mayfair and the Canary Wharf, with FXN Trade claiming to be operated by an entity named Centaure Capital Partners. Both websites visited by our reporters appeared unusual, with FXN Trade believed to be targeting French speaking clients too.
The company depicts on a margin levels table that it is offering “20:01 or 10%” leverage on trading CFDs on U.S. shares. Furthermore, on its “Security of Funds” section it alleges that it “holds its operational and its customer accounts in banks of international repute, such as the National Bank of Dubai, Barclays Bank and the Rietumu Bank.”
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There is no National Bank of Dubai, but the Emirates NBD (National Bank of Dubai) is the closest institution to match the name used by the online entity, FXN Trade. Another misspelled name is that of Rietumu Banka, which is a Latvian bank, leading to possible Russian connections of the online entity.
Net CFD on the other hand is offering 1:40 leverage on U.S. stock CFDs. No real risk management department would allow such leverage on stock trading because this asset class is way more volatile than forex.
As mentioned above, the entity also claims to be run by a given Centaure Capital Partners LTD, which is merely a misspelled version of Centaur Capital Partners. The clone wars reign free as unregulated forex brokers keep abusing names of regulated entities. Regulators are facing a tough time identifying all the online entities fraudulently claiming any sort of registration.