The UK Financial Conduct Authority (FCA) issued a warning against forex and binary options broker Capital Markets Banc (CMB) on Tuesday. According to the regulator, the broker has been targeting people in the UK and providing financial services in the country without being duly licensed.
The UK financial watchdog further warns investors that some of the investment firms acting without authorization by FCA “knowingly run investment scams.”
CBM is owned and operated by Joshua Development Limited, a company headquartered in London. According to the information on its website, the firm is registered in Dominica. However, it is not licensed by the FCA and therefore is not entitled to provide financial services or products in the UK.
The broker operates via the website capmb.com, which is not very informative, as it lacks important data, such as about the trading platform offered. It provides trading in forex, CFDs and binary options with minimum deposit of $250, leverage up to 1:200 and fixed spread of 3 pips on EUR/USD.
The FCA is famous 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 investing with it. It also issues warnings against entities that could possibly harm investors on a regular basis. Most recently the FCA added Trade12 and MRTMarkets to its warning list. Earlier this month the regulator warned against binary options broker Stern Options, as well as against StoxMarket.