EliteFX Trader: Canada regulator warns investors not to engage with FX broker
The firm claims to be authorized and regulated by several agencies across the globe, including Saint Vincent and the Grenadines, the United Kingdom, Dubai, South Africa, and Seychelles, but EliteFX Trader does not provide any license number in order to check whether that’s true or not.
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA), a local regulator in Canada, has warned investors of EliteFx Trader Inc., which is not registered in the Canadian province.
Local authorities require all online trading platforms offering Saskatchewan residents access to securities and derivatives to register with the FCAA.
EliteFx claims to be authorized by many regulators, but provides no license numbers
“EliteFx Trader Inc. is allegedly based in Chicago, Illinois, and has been in contact with Saskatchewan residents”, said the financial watchdog’s warning. However, the online trading platform’s website, elitefxtrader.com, claims to be headquartered in New Jersey, USA.
Moreover, the firm claims to be authorized and regulated by several agencies across the globe, including Saint Vincent and the Grenadines, the United Kingdom, Dubai, South Africa, and Seychelles, but EliteFX Trader does not provide any license number in order to check whether that’s true or not.
Saskatchewan’s FCAA advised traders not to engage with EliteFx Trader nor any other company that is not registered with the agency.
“FCAA strongly cautions investors and consumers to not send money to companies located outside of Canada that are not registered in Saskatchewan, as they may not be legitimate businesses and you may lose your money”, the regulator stated.
“Residents should also be cautious if approached by organizations claiming they could recover investments sent to unregistered entities – such as EliteFx.”
Broker scams keep multiplying
Broker scams have multiplied since the pandemic started and regulators have no way of identifying all of them. Even if they did, users that typically fall for these kind of fraud don’t usually do their proper research nor consult their regulator’s database.
The UK Financial Conduct Authority, for example, regularly puts out warnings of broker scams and clones in order to prevent investors from losing their hard earn money.
Most recently, the FCA alerted the public against ICMarketsPRO, which imitates IC Markets. The copycat broker has chosen to operate under a name similar enough to IC Markets to convince potential clients that it was the authorized online trading firm that had contacted them.
This also provides an easy hunting ground for clone scams who target victims via paid-for adverts. As such, the City watchdog undertakes proactive monitoring, almost on a daily basis, to identify potential scams and provides search engines and social media networks with details of the alerts it issued. It also works closely with domain registrars to make it more difficult for cloned websites to stay online, and remove them as quickly as possible.
The warning is another step in the FCA’s tireless efforts to crack down on unregulated firms posing as legitimate approved businesses with full force. The regulator has previously issued warnings against similar companies, urging the public to beware of firms working outside the law and without the proper necessary approvals and licenses.
The City watchdog urges people to be extra vigilant to the threat of investment scammers after victims lost over £78 million in 2021 – £45,000 each on average. As such, the FCA tells investors to check its register before doing business with any investment platform.