FCA Warns against FX Globe International for Unlicensed Operation

The British supervisory agency, the Financial Conduct Authority (FCA), issued a warning against the forex and CFDs Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, FX Globe International as the broker is taking UK clients without any local license.

“We believe this firm may be providing financial services or products in the UK without our authorization,” the FCA stated.

The warning is specifically against the Vanuatu-registered entity of the broker, FS International Ltd, that is operating with the off-shore license in several developing countries.

“FS international Ltd is not licensed either by JFSA and/or from any European supervisory authority; Thus it is not involved with any acts considered to be offering financial products and solicitation for financial services to Japan or in European Union member states,” the website of the broker highlights.

An FCA License Is Mandatory

Within the European Union, the broker operates with a Cypriot license. However, the FCA warning does not mention anything about the Cypriot entity. Though now EU brokers need a mandatory FCA license to operate in the UK after Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, some EU brokers are still operating in the country under a temporary regime.

“This firm is not authorized by us and is targeting people in the UK. You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong,” the FCA added.

Earlier, the British watchdog flagged a few other EU brokers and blocked their services in the country for taking the UK traders under offshore entities. A recently published report found that this is a common phenomenon as they use introducing brokers (IBs) and affiliates to promote the services under international entities.