Mille Lees Mille Lees, Friday 13th March 2020, 12:16 PM CET
fortune trade fx, Financial Markets

Several warnings relating to financial markets scams throughout the United Kingdom Jurisdiction have been revealed by the Financial Conduct Authority, with them noting that these are unauthorized firms that don’t have the legal permission to solicit clientele. The challenge for the non-expectant client is recognizing the differences between these unpermitted operators and legally approved brokerages, with the illegal entities often cloning every aspect of notable firms.

This prompted an updated warning from the UK’s Financial Watchdog, which included the first four brokerages that are more notable clones. Those include TrustFX, Titan Global Finance, All Financial Markets and Fortune Trade FX. The most significant of the four is Fortune Trade FX, which cloned Darwin-EX. Advisory Broker Services were also blacklisted by the Financial Conduct Authority, with the FCA noting this firm implemented manipulation tactics through reference numbers with the European Economic Area. This form of a financial scam is rarer and can prompt more adverse effects on traders.

Increased Focus

The Financial Conduct Authority has increased its governing focus over the retail investment market, ensuring that brokerages trading in this market space aren’t being scammed through sophisticated methods. One of the critical ways to identify an illegal operation is by searching for corporate contacts and details. None being revealed will indicate a fraudulent service, with the FCA often working on behalf of traders as a form of protection.

One of the more recent financial scams centre around the Financial Conduct Authority. Illegal entities have begun creating financial promotions that implicate they’ve been regulated and legalized by the FCA. Considering a small percentage of applicants are approved by the FCA, most of these claims are falsified. There are also moments where legalized brokerages will also operate in an illegal operator, with this applying twice in the United Kingdom.

Once with SVS Securities PLC and the other with AFX Marketed Ltd. Both continue to operate today after paying their respective fines and working within the confines of modern-day regulations. It should be noted that the number of financial scams occurring throughout the blockchain & cryptocurrency industries has increased in recent years, which has often led to the collapse of entire markets and numerous firms.

Mille Lees

Author: Mille Lees

Millie has been with whichbroker.com since the start. She has a passion writing financial news after an internship at Bloomberg London. Millie's background in journalism and politics means she has an eye for a good story. Millie graduated from LSE and has a masters from Durham University England. Mille Lees can be contacted at [email protected], View all posts by Mille Lees

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