Synergy FX, an Australian-based forex broker, has been fined $10,800 in a regulatory action after it misled clients of its its managed accounts. The Australian Securities and Investments (ASIC) issued the penalty with an infringement notice linked to false statements used on the company’s website to justify the claim.
The ruling will serve as a warning to all Australian forex brokers, who stand accused of using a raft of underhand tactics to tempt investors.
According to ASIC, Synergy employed misleading advertising on its website suggesting that investors in its managed discretionary accounts will only pay the company when their accounts make profit. This was misleading because Synergy charges investors regardless of the outcomes of their investments in its managed discretionary accounts.
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The Australian watchdog said on Thursday that Synergy’s advertised fees were not true because additional mandatory fees related to its managed services were hidden from traders in fine print disclaimers. More specifically, the company charges an annual management fee of 2 percent of the investor’s balance in addition to brokerage fees and commissions.
Earlier in May, Finance Magnates reported on Synergy FX when the company launched a refresh of its trading education portal to offer all forex educational material for free to anyone looking to tap into the $5.3 trillion-a-day market worldwide.
In essence, the new initiative unlocks a composite of over 90 forex related trading tutorials, videos, ebooks, event calendars, news and market summaries. It also allows unrestricted access to its training resources, live market summaries and trading calculators that can be fully accessed from the broker’s website.