UK’s regulator, the Financial Conduct Authority (FCA), has published warnings against the forex brokers BancoFX and CFD1000.
The two brokers have been soliciting UK residents without having the proper authorization. “Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us,“ the FCA notes.
According to its website, BancoFX is owned by Trade Your Way Ltd., with a contact address in Manchester and a business address in St. Vincent and the Grenadines, while the broker itself provides an address in London. But there is no information about regulation or licensing.
BancoFX claims to be an award-winning British financial services provider. It offers trading in forex and CFDs on commodities and indices on the MetaTrader 4 platform.
CFD1000 also provides a business address in London and, similarly, no regulation information. Its website has versions in Arabic, Japanese, Russian, Chinese, Polish, Italian, Spanish and Turkish. The broker offers trading in forex and CFDs, as well as algo trading. The minimum deposit is $200, the maximum leverage is 1:400 and the main trading platform is MT4.
FCA is one of the regulator that updates its list of unauthorized financial services providers on a regular basis. Last week it warned against TFX Traders binaries broker and several weeks ago advised the elderly to be extra cautious when investing their savings.