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Forex Industry
by Mariami on February 12th, 2019

CySEC flags another four unauthorized Forex firms

This week started with another news about another potential scam firms. This Monday the Cyprus Securities and Exchange Commission (CySEC) published a new warning on its website against four entities that might be a scam.

The financial watchdog has issued warning against four websites, the warning states that the websites do not belong to those entities that have CySEC regulation and authorization for providing investment services. It is a very common practice among the scam companies or specifically, websites to claim the name of the brokerage that is regulated. These websites often claim the number of the license of another regulated broker company as it is not the first time when CySEC flags clone firms that are working with the same scheme.

All four entities that have been warned against are providers of Foreign Exchange trading. The companies accused in the possible scam are Lite Options (lite-options.com), Bogofinance Capital Markets LTD (bogo-finance.com), Algobit Ltd. (worldwidecapitalfx.com) and FXJET (jetfore.com).  If you will check the websites of the four entities you can see that the websites of Algobit Ltd and Lite options are basically the same. This is because Algobit Ltd owns Lite Options which is CFDs and Forex trading provider.

Claiming CySEC regulations

On the first page of the website both broker firms claim to be regulated, however, they do not specify which financial authority they are regulated by. Needless to say that the entities are not regulated by CySEC, meaning that the brokers are operating without any authorization and thus are illegal in the country.

The same goes for the other two websites. FXJET claimes to be a Forex trading provider and consultancy firm. As it appears the company is a clone firm of an authorized Forex and CFD broker FXJET which is regulated by CySEC. As it happens commonly the clone firm has copied the logo of the legitimate company and also states that it is regulated by the Cyprus regulator. The fraudster company has also displayed on the website that it is operated by Bogofinance Capital Markets LTD, the entity which was also flagged by CySEC as an unauthorized firm.

As mentioned firms are not among the CySEC regulated Forex brokers, it means that they do not have any right for providing any financial, consultancy or investment services within the country. Moreover, these firms are clone companies and claim to be authorized by the regulator. There together comes with a big red flag as there is a high possibility that these brokerages are a scam and are trying to trick the customers into investing with them. Hence, it is always a good idea to properly check the broker regulations with the regulator itself not to lose any money with the clone and other scam firms.

By Mariami

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