It was only yesterday that we here at Finance Magnates reported that the Financial Conduct Authority (FCA) had posted a warning on its website about a suspected scam. In less than 24 hours, the regulator has already updated its list and added a new contender today.
The latest entity to be added to the FCA’s warning list is Trading Epic, an alleged foreign exchange (forex) and contracts for difference (CFD) trading provider. The reason this company has been lucky enough to fall under the regulator’s radar is that it is operating in the United Kingdom without authorization.
In the UK, basically, all firms and individuals that offer financial products or services need to be authorized by the FCA. However, some firms, which often have less than honest intentions, act without authorization and some deliberately run investment scams.
Therefore, an entity operating in the UK without authorization is a serious warning bell for consumers. For residents to stay aware and identify the potential scam, the British watchdog has listed Trading Epic’s details as follows:
Address: East 14th Street, New York, NY 10003, USA
Telephone: +1 (315) 333 2803
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Via its website, Trading Epic claims: “Trading Epic is one of the leading platforms in the United States offering binary options, Forex and spreads. Regulated by the CFTC and based in New York, with member funds held in segregated accounts in major US banks, Trading Epic offers secure and innovative ways to participate in the markets.”
Trading Epic Claims to be Registered by FCA
Also on its website, the entity further states that it is authorized by the FCA. However, the warning from the regulator today shows the complete opposite, which casts everything else the company has said on its website in doubt.
Fraudsters and scam companies will always do their best to try and appear as legitimate as possible to make consumers feel more comfortable with parting with their hard-earned cash to invest in their illegal operations.
Because of the warning from the FCA today and the clearly false statements on its website, it is safe to assume that Trading Epic falls towards the end of the suspicious scale and therefore, residents of the UK should give this entity a wide berth.