FCA Warns Public that EuroFX is not Authorised

abdelaziz Fathi

The UK Financial Conduct Authority issued a warning on Monday against many entities, including a forex brokerage firm that has been falsely claiming registration.

Peer-to-peer lending to be regulated by the FCA in the UK

All firms and individuals offering, promoting or selling financial services or products in the UK have to be authorized by the FCA.

The UK watchdog has blacklisted a forex and CFDs broker named EuroFX, operating through https://eurofx.trade, which claims that it is offering a legal product. Reviewing the company’s website didn’t yield much valuable information regarding its ‎operation, except for the usual claim of being a leading ‎investment firm.

The watchdog warned that this brokerage firm may be a scam and added that it was flagged for operating and targeting UK citizens without a license. The FCA pointed out that the company is based out of an undisclosed jurisdiction while soliciting its clients using a brand claiming registration in Commonwealth of Dominica. Even if true, the island country in the Caribbean is known to be a harbor for many illegitimate brokers.

Interestingly, EuroFX has chosen to operate under the same brand name of a forex pyramid scheme that has gone into liquidation in 2016. EuroFX scammed thousands of investors in China and other countries through a major trading scam, which was run through UK companies alongside a New Zealand financial service provider.

The high-profile licenses helped the firm defraud close to 4,000 people around the world out of more than $632.3 million.

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.

“Dealing with financial firms that are authorised or registered by us gives you greater protection if things go wrong. Check the Financial Services (FS) Register to ensure they are authorised or registered. It has information on firms and individuals that are, or have been, regulated by us,” the regulator said.

The FCA operates as a watchdog for financial trading, securities, and markets in the UK, overseeing a variety of assets and compliance issues for traders and consumers.

In order to prevent such fraudulent practices, FCA has issued several guidelines which encourage potential investors to be wary of promises of disproportionate returns. City watchdog has also advised the public to always verify the company’s identity (identity details, country of establishment, etc.) and to never trust a company if it cannot be clearly identified.

Read this next

Retail FX

Finalto sweetens offering for African traders with localized FX pairs

Finalto, the financial trading division of Gopher Investments, announced today that it has extended its offering with inclusion of a number of African Pairs to its trading platforms.

Digital Assets

BitMEX secures OAM registration to operate in Italy

Crypto exchange BitMEX has won regulatory approval from Italy’s financial regulators, allowing the exchange to continue serving Italian customers.

Institutional FX

FlexTrade integrates Glimpse’s post-trade bond execution data

“Looking further ahead, this integration also presents multiple opportunities for how fixed-income traders could leverage the trading data. For example, traders could tap Glimpse data as an input to AI-driven automation workflow strategies in the future.”

Industry News

FINRA fines UBS $2.5m for Reg SHO violations and supervisory failures

FINRA has fined UBS $2.5 million for Reg SHO violations and supervisory failures spanning a period of nine years.

Digital Assets

Bitfinex Pay launches feature that minimizes volatility risk

The currency conversion will take place every five minutes on any amount above $10.

Digital Assets

Mastercard launches Crypto Secure for risk assessment in digital asset space

“Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard.”

Retail FX

VT Markets wins 4 more awards including Best Forex Mobile App Global 2022

“Over the past few months, we have noticed a huge spike in downloads and daily active users on the VT Markets App. Our clients can trade multiple asset classes with ultra-low spreads, and access timely market news on our mobile app.”

Institutional FX

Blue Ocean ATS enhances price discovery and liquidity for after hours US stock trading

Liquidity and price discovery, missing from previous overnight trading solutions, are now possible utilizing the TNS network and managed service platform. Security of the private network and its access to all public clouds, uniformity of compliance and regulatory oversight, redundancy and recovery capabilities, plus the localized customer service around the world made TNS the best candidate for this major step in Blue Ocean Technologies’ growth.

Executive Moves, Retail FX

Equiti Group wins CySEC license to expand into Europe

“Regulation and good governance have always been and will continue to be a key part of Equiti’s business model.”