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UK’s FCA blacklists unregulated broker FX Merchants

Oct 31 2018
By
Jonathan Smith

 

The Financial Conduct Authority (FCA) has updated its warning list with unregulated broker FX Merchants on Tuesday. According to the UK Financial watchdog, this entity are not licensed to offer its services in the country, but has been illegally targeting local investors.

 

Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us”, the FCA stated in its notice. “However, some firms act without our authorisation and some knowingly run investment scams.”

 

It seems that this is exactly the case with FX Merchants. The broker (operating viafxmerchants.com website) claims to offer trading in forex and cryptocurrencies, as well as asset management services. However, it is not licensed, provides no information on trading conditions, nor free testing service, and live account registrants are redirected to another website.

 

The FCA strongly advises UK investors to only deal with companies that are licensed by them, and check the Financial Service Register to ensure they really are. Brokers licensed by the FCA have to meet a number of requirements and are subject to tight oversight, so their clients may rest assured that their money and interests are protected.

 

Even if a UK broker becomes insolvent, there is the Financial Services Compensation Scheme (FSCS). Under the umbrella of the FSCS, clients of regulated entities are entitled to receive up to £50,000 in compensation each.

 

TAGS: FCA  warning  FX Merchants  scam  UK 
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