Algo Banque Ltd., an automated forex broker, falsely claims to be regulated by the Financial Services Commission (FSC) of Mauritius, the watchdog said in a notice on Friday. The entity claims it was licensed by the FSC in 2014 as an investment dealer (full services excluding underwriting), but it has never held a license issued by the Mauritius regulator.
The FSC noted that no entity under the name of Algo Banque Ltd. has been incorporated in Mauritius and the certificate of license posted on broker’s website is fake. The regulator warned investors to be cautious when engageing with Algo Banque and said it had already alerted the relevant regulatory bodies with respect to the broker’s false claims.
Mauritius’ regulator is not the first one to post an alert ,,,,,, Algo Banque. In December 2015, Swiss financial regulator Financial Market Supervisory Authority (FINMA) blacklisted the company without explaining its move.
The broker’s website is no longer operational. Prior to that, it offered through www.algobanque.com trading in forex, contracts for difference (CFD), and spot oils and metals.
AlgoBanque is a trading brand of Yamix Marketing UK, which also operates UK Markets, another forex broker which also claims to be licensed by the FSC, but is missing from the regulator’s register.
Mauritius is known as an offshore destination for forex brokers and is preferred by many for its favorable set up costs, low capital requirements of about €17,000, and favorable tax regime. Licensed entities need to be incorporated in the country and operate an office there. Under the FSC’ regulatory framework, financial service providers are required to hold a FSC license in order to operate.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.