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Forex Scam: FCA issued a warning against PlusFN

Sep 11 2014
By

The UK regulator warns against an unregulated entity using the names PlusFN Ltd +FN, and Equity Sky Capital Marketing Limited (plusfn.com).


The main problem with PlusFN which parent company Equity sky capital marketing is registered in Gibraltar is that the broker is evidently trying to make business in UK listing itself as London-based and having customer support using UK telephone numbers.


There is no way a company that is competent enough to be a forex broker not to be aware that you can’t do such business in UK without any regulation. There is a reason why internationally recognized and regulated in their respective countries brokers like FxPro or Hirose are acquiring FCA licenses although the procedure is costly and demands considerable resources and time.


Other than the lack of any regulation a quick inspection of PlusFN website tells us that Equity sky capital marketing owns as well a (rather poor) portal for financial news and analysis (plusfinancials.com) which again is “UK branded”.


PlusFN website doesn’t contain much information, if any, beyond bombastic marketing claims and payment methods. Interestingly it is explicitly stated that “In general, the minimum withdrawal amount is $100.00, or currency equivalent.”


+FN lists two types of spreads ECN spreads and fixed spreads and these are horrendous. For example, the EURNOK pair spreads are 56.9 pips (ECN) and 75 pips (fixed). To put that in context the first results Google shows for that pair spread is by ThinkForex, an ASIC regulated broker. The spread is 8.3 -9.4 pips. What about EURJPY, a very popular pair? FNPlus spread is 4-4.5 pips. XM.com, a CySec regulated broker, spread is 1.5 pips.


A small difference. Such small differences coupled with the lack of regulation have forced the UK Financial Conduct Authority to warn against PlusFN. We better listen.

 

TAGS: financial conduct authority  fca  forex csam  plusfn  +fn  equity sky capital marketing 
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