The FCA Has Warned the Public About These Brokers
The FCA or the Financial Conduct Authority has flagged the following brokers. This is a serious consideration, because of the status of the FCA and the prevalence of broker scams. We pay attention to regulator alerts and constantly update these scam broker reviews to warn the public and prevent consumers losing money to online trading scams.
It’s important to do thorough research before signing up with a broker and entrusting them with your money. These lists are a starting point to help you eliminate brokers that you would otherwise have signed up with. When you see a broker on this list, we urge you not to take a chance and avoid them. Our reviews give you more detail and an indication of how frauds work so you can keep your money safe.
What the Financial Conduct Authority Does
The Financial Conduct Authority or the FCA is the main financial regulatory body in the United Kingdom. All financial services that operate in the UK or have British customers must hold a current and valid FCA license. If they don’t, they are not legitimate companies.
The FCA has a crucial role to play in regulating financial markets and ensuring they provide transparency and legitimate services. They issue licenses to qualified financial services and ask for reporting and documentation to ensure that the license should be re-issued or continued. The FCA also responds to customer complaints, warns the public against suspected fraud and takes disciplinary action against problematic financial companies.
Red Flags Behind These FCA Alerts:
The following are common reasons the FCA may alert the public about a broker:
- Licensing issues
- Misleading statements
- Non-compliance with regulations
- Proliferation of customer complaints
- Clone broker
- Legal action against the company
One of the most frequent complaints issued by the FCA is that the company doesn’t have an FCA license even though they claim to be located in the UK or have UK customers. They may be operating with expired licenses or falsely claim that they are regulated.
The FCA is also concerned about misleading statements the company makes on websites, social media, emails and other marketing content or communications with clients. Guaranteed returns are an example of misleading statements as well as claims of having no fees, but levying fees later.
The FCA may alert the public if a financial company doesn’t comply with UK regulations or with requirements FCA licensees must abide by. A large number of verifiable customer complaints directly to the FCA is also a cause for concern.
Clone brokers are becoming increasingly common and this troubling form of fraud involves a broker adopting a similar-sounding name to a licensed broker. These fake brokers want to convince the public they are legitimate and licensed when they aren’t. The FCA will also notify the public if the company has been the target of legal action.
What You Should Do If You Have an Account with These Brokers?
If you currently hold an account with the following brokers, close it and demand an immediate withdrawal of all of your funds. If you do not receive a withdrawal from this broker contact CryptoCoinTrace experts. We consult with clients, advise them on claims and have the tools and methods to track down your funds. The sooner talk to us, the greater the chances of a successful claim
