The UK Financial Conduct Authority (FCA) issued on Wednesday separate notices, warning against unauthorized forex brokers Rhodium Forex and its affiliate WR Trade and forex and binary option broker Algo Capitals, the last one of which is a clone of a FCA authorized firm.
Rhodium Forex/WR Trade, operating via www.rhodium-forex.com, and Algo Capitals, operating via www.algocapitals.com, are targeting UK citizens, but are not authorized to provide financial services in the country.
All firms against which the FCA warns claim to be based in London. However, neither of them provides information about regulation.
Rhodium Forex offers a single trading account for forex, stocks, futures and contracts for difference (CFDs). The broker also offers various other services, including teaching and individual training, developing strategies, and creating a trading portfolio. It is presumable owned by WR Trade.
AlgoCapitals Ltd., pretends to be associated to a genuine UK-regulated firm, when it has nothing in common with it. It is a clone of Algo Capital Management Ltd., which operates via www.algocapital.com and holds a FCA license.
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.
The UK is a strong forex market with tight regulation. An FCA license provides access to the rest of the countries in the European Economic Area (EEA). Without a license, however, entities are not allowed to provide financial services in the country. The FCA is renowned for its strict standards and tight supervision.
The regulator keeps a register of unauthorized forex brokers that target local citizens and regularly issues alerts against entities that could potentially hurt local investors.
When engaging with unauthorized and non-regulated brokers traders are putting their investments at higher risk. We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.