Forex brokerage Prime FX is doing business in the UK and targeting local citizens without having the required authorization by the relevant authorities, the UK Financial Conduct Authority (FCA) said.
“We believe this firm has been providing financial services or products in the UK without our authorisation,” the FCA noted. It added that often such companies run investment scams and traders should be especially wary of dealing with them.
The broker operates via the website www.pfxbank.com, which is currently not working.
The UK is a strong forex market with tight regulation. Nearly all financial service providers are required to hold a license by the relevant authority. An FCA license provides access to the rest of the countries in the European Economic Area (EEA). Without a license, however, forex brokers are not allowed to provide financial services in the country.
The FCA is renowned for its strict standards and tight supervision.It keeps a register of authorized forex and binary options brokers where investors can look up a broker prior to engaging with it. It also issues on a regular basis warnings against entities that could possibly harm investors.
Investors should be aware that they can claim a compensation of up to $50,000 under the Financial Services Compensation Scheme (FSCS) in case something goes wrong, but only if the broker they are working with is regulated.
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.