New Zealand’s FMA Warns of Suspected Scam and Unauthorized Broker

The Financial Markets Authority (FMA), a New Zealand regulator, has posted a series of warnings on its website. The warning concerns Finance Group Corp, Cent Projects Ltd, and Caxton Global.

According to the statement, the regulator has received a report which states that a representative from Finance Group Corp (FGC) of Vanuatu and/or Cent Projects Ltd (CPL) of Seychelles contacted a New Zealand resident via Instagram. Through the social media platform, the representative promoted dealings through the website www.24startrade.com. Since this initial contact, the representative has withheld funds from the client.

Through the website, 24StarTrade claims to offer traders the opportunity to invest in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs. The broker allows consumers to trade in either fiat currencies or Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. FGC claims to be located on the Second Floor, Transpacific Haus, Lini Highway, Vanuatu while CPL’s address is 309 & 310 Albert Street, Victoria, Mahe, Seychelles.

The FMA warns that neither FGC or CPL are registered in New Zealand to provide financial services. The New Zealand watchdog urges caution when using the services from this website, as it has the characteristics of a scam.

The statement also adds that the Autorité des marchés financiers and the Autorité de contrôle prudentiel et de resolution in France recently published a warning about another website www.BinaryCent.com, which is also operated by FGC AND CPL. The website offers the same products as 24startrade.

Caxton Global

The FMA has also blacklisted Caxton Global an alleged forex and commodity broker. The regulator has flagged this company because it claims to be authorized and regulated in New Zealand. Furthermore, on its websites (www.caxtonglobal-fx.com, www.caxtonmarkets.com, www.caxtontrading.com, and www.caxtonglobal-fx.net) they mention a Financial Service Provider number. The watchdog warns that this number is being used by the broker without authorization and it is not legitimate.