We start the new week with an update to the warning list from the Spanish regulator, the National Securities Market Commission (CNMV). It cautions against the activities of seven different entities lacking proper authorization to provide financial services. Among them are clones of three popular FX and CFD firms.
Watch Out for More Clones, This Time of AvaTrade, LCG, and JFD
According to the warning list published today (Monday), CNMV draws attention to several new entities that “are not registered in the corresponding registry of this Commission and, therefore, are not authorized to provide investment services or other activities subject to the CNMV's supervision.”
The list includes entities such as Capital Finexp, LBank, Coinrisen, and Immediate Edge, as well as three clones of popular brokerage brands. The first is a copy of AvaTrade called AvaTraex (the website avatradeez.com is currently unresponsive).
Another clone is London Capital FX, impersonating the LCG brand. However, its website londoncapitalfx.eu also appears to be unresponsive at present. The last broker clone that the Spanish regulator warned about on Monday is JFD Group, masquerading as JFD Brokers.
@cnmv new warning list, including clones of @AvaTrade @LCGTrading and @JFD_Group pic.twitter.com/JjINV0Ob1M
— Damian Chmiel (@ChmielDk) September 9, 2024
This isn't the first time CNMV has warned about clones of popular brokerage brands. As Finance Magnates recently reported, the regulator also added clones of IG Group and StoneX to its warning list.
Clone Wars
Almost every week, the industry receives signals from various parts of the world about clones of more brokers. Although regulators (and CFD firms themselves) try to combat this practice, their efforts prove ineffective.
Clone websites pose significant dangers in the FX/CFD industry, threatening both brokers and traders alike. These fraudulent sites mimic legitimate companies or regulatory bodies, aiming to deceive unsuspecting individuals.
A few weeks ago, the UK’s FCA reported another clone of XTB broker, which almost exactly copied the website of the Polish fintech .
Earlier, the German BaFin warned about a clone of Pepperstone, one of the “favorite” brokers among scammers and simultaneously one of the most frequently cloned.
Recently, the Belgian FSMA also drew attention to clones, highlighting two copied firms on its list of over 40 potentially fraudulent trading companies: BNP Paribas and CMC Markets.
To protect themselves, investors should always verify the authenticity of a broker's website by checking official regulatory databases and being wary of unsolicited offers or deals that seem too good to be true.