The United Kingdom’s regulatory body, the Financial Conduct Authority (FCA), has released a warning regarding a clone of multi-asset broker FXCM.
The FCA alleges that the copycat broker has chosen to operate under the name ‘FXCM International Finance Group’, a name similar enough to FXCM UK Limited that it convinced local traders that it was the authorized online trading firm that had contacted them.
The illegitimate broker, conversely, did not assume the address at which the original company’s offices are located. Instead, it opted to claim an address in China. Clients should note that the licensed firm’s offices are located at The Northern & Shell Building, 8th floor, 10 Lower Thames Street, London, EC3R 6AD, England.
As per usual, this seems like yet another instance of a scam operation where an unlicensed company illegally assumes the identity of an authorized company so that traders will mistake it for the legitimate entity.
Furthermore, the FXCM clone had also been taking advantage of its misleading name in order to solicit traders who are based in the United Kingdom. The firm was not only identifying itself as a well known online trading company under false pretences, but it was operating without authorization as well. That alone is a major violation of British law.
The FCA encourages traders or those considering online trading to exercise caution, strongly advising against funding an account or investing via this specific company. Anyone who chooses to sign up with the impostor should bear in mind that they will not receive the financial authorities’ assistance should things go awry.
Earlier today, the FCA published a warning regarding another clone company which had been identifying to clients as Active Funds ICAV.