The Financial Markets Authority (FMA) has issued two warnings on its website on Friday. The announcements concern two forex brokers FSMSmart and Baihua Global.
According to the warning concerning FSMSmart, the broker claims to be a registered financial service provider in New Zealand when, in fact, they are not. The watchdog warns that the company is making unsolicited calls to residents, offering their services to allow individuals to trade forex and derivatives through its website.
On its website, FSM Smart claims: “FSMSmart serves as one of the longest standing and pioneering Forex brokers in the world.” Through its platform customers can allegedly trade forex, metals, derivatives, and spreads. Clients can do this via its MetaTrader 4 and various online and mobile platforms.
The broker claims it is operated by FMS Smart LIMITED and its address is Hertensteinstrasse 51 Lucerne, Luzen 6004, Switzerland. The company operates from www.fsmsmart.com.
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The second warning goes to Baihua Global. According to the statement, the broker is misleadingly using the registration details of Booster Funds Management Limited (FSP555786). Booster Funds Management Limited is a licensed fund manager in New Zealand. However, the regulator cautions that it has no connection with Baihua Global.
As a result, Baihua Global is not a registered financial service provider in New Zealand. The watchdog also states that the broker could be involved in a scam.
According to its website, Baihua Global is a: “financial services organization specializing in financial and financial derivatives such as online foreign exchange, precious metals, energy and CFD index CFDs. We provide global traders with a top foreign exchange liquidity provider. Foreign exchange market.”
The broker says its address is Level 5, 13-27 Manners Street, Te Aro, Wellington, 6011, New Zealand and operates via its website www.bfmfx.com.
The FMA urges caution when dealing with FMSSmart or Baihua Global.