Financial Conduct Authority (FCA), the UK financial regulator, published on Monday a warning issue against Markets Central Investment, a clone of FCA-regulated forex and contracts for difference (CFDs) broker Central Markets London (CML). The fraudulent company has been improperly associating itself with the genuine broker.
Markets Central Investment presents on its website, www.markets-central-investment.com, the same London address as Central Markets. The fraudster is using the detaisls of the regulated broker to convince investors they work for an authorized company
In addition, it claims a false FCA registration, which is not occupied, according to the regulator.
Central Markets, operating via www.centralmarkets.co.uk, offers trading in forex, CFDs, shares and spreatbetting, as well as self-invested personal pension (SIPP). The broker supports several trading platforms – the industry leader MetaTrader 4 (MT4), as well as IG Trading, AlphaPro, and a Saxo Bank-branded platform.
Clone firms use some or all of the details of a genuine entity, aiming to convince investors they works with the authorized company. The regulator noted that fraudsters may give out false details or mix false data with correct details of the authorized firm.
In the UK, financian companies are forbidden to provide services unless they have the proper license issued by the local regulators or the relevant authorities in any other EU member state.
UK-regulaton is renowned for its strict regulation. Under the local regulations, investors’ funds of up to £50,000 are safeguarded under the Financial Services Compensation Scheme (FSCS), but only if traders engage with authorized and regulated UK brokers.
Investors who chose unauthorized brokers put their funds at risk. They can look up all regulated and authorized entitied in the FCA’s Financial Services Register. Any entities not included might appear to be fraudulent.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.