How to distinguish a reliable financial partner from a typical scammer and what advantages FCA protection gives to traders? Traders Union will also present a list of fake Forex brokers in the UK and tell you how you can quickly identify a fraudster.
Is Forex legal in the UK?
Forex trading is completely legal in the UK. The main law is the Financial Services Act 2012, according to which all clients of brokers with a local license are protected from losses up to £50,000 (the FSCS compensation fund is in place).
Blacklist of fake Forex brokers list in the UK
Fake brokers know very well that having a British registration and an FCA license is highly respected. Moreover, they steal someone else’s bank details from the Companies House public register of legal entities and pass them off as their own.
Lucror Capital Markets
Lucror Capital Markets LP is a brokerage company registered in New Zealand. This company promises profitable cooperation both with institutional clients and retail traders. But it doesn’t keep its promises.
It was because of numerous complaints that this company was blacklisted in the fake Forex brokers list in the UK, and its license was revoked.
Europa Trade Capital
The brand is managed by FD Trade Llc. The company claims to have been successfully providing services for 20 years. At the same time, it still has not taken care of the regulation. The FCA has blacklisted this broker because it has received numerous complaints, as well as due to its lack of trading and payment discipline.
The company neglects to obtain a license. Moreover, the FCA has already blacklisted Brown Finance as a broker and warned the public about the dangers of working with it.
The site promises excellent customer support, transparent trading conditions, and a $250 entry threshold even for beginners. It sounds tempting, but real customers write a lot of complaints about this broker in their reviews. In fact, that’s why it was blacklisted.
The brokerage organization was put on the FCA forex fraud list because of numerous negative reviews.
The main signs of its fraud
- false trade recommendations;
- Extortion of new investments through threats;
- hidden commissions;
The platform’s website states that the broker is operated by an offshore company from St. Vincent and the Grenadines and is registered in the island nation in 2019. The platform does not have a license to operate legally, but there are many complaints from customers who have suffered from these scammers.
This scam broker continues to operate and lures newcomers with a wide range of instruments, promises of a transparent financial policy, and the possibility of free practice. The initial deposit is $100.
Despite promises of honest and stable work, this broker does not have a legal basis for activity. Traders note that the organization refuses to fulfill its obligations and does not guarantee the withdrawal of funds.
The entry barrier is $5, but using psychological pressure and empty promises, the company manages to trick investors into parting with four-figure sums.