FCA To The UK Clients: Watch On Trading With Auxi Markets
The establishment of a trading platform brought forth the introduction of financial regulatory firms, acting as watchdogs to minimize clients in particular states from trading frauds.
Financial Conduct Authority FCA, a UK financial regulator recently issued a warning to the UK clients of a company operating without their authorization. Auxi Markets is the name behind the warning tag, a trading platform providing trading services with zero regulatory body screening to affirm their standards.
According to the advisory firm, caution should be observed when dealing with services from Auxi markets, as their operations bare several risks. Among the risks include clients losing all their deposits or losing the invested capital in case something arises from the company. These uncertainties convey to funds withdrawal limitation from the Auxi Markets account.
Moreover, if such a case happens, the client will not benefit from compensation. The company operates under the auximarket.com website. The broker has posted the company as an FCA-regulated company on its homepage, tagging along with the FCA registration number. However, the regulatory body distanced itself from the allegation.
“Almost all firms and individuals offering, promoting, or selling financial services or products in the UK have to be authorized or registered by us. “You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong,” the FCA warned.
“Be aware that some firms may give out other details or change their contact details over time to new email addresses, telephone numbers, or physical addresses,” the FCA added.
The Alarming Alert
The recent FCA warning fell days after another warning issue concerning a clone firm associating itself with Rational Foreign Exchange Limited. Crypto-Trade 365 uses the FCA-authorized firm’s legit details to con people in the UK.
Moreover, the clone firm created a domain “www.crypto-trade365.com” to stamp its legitimacy to the clients. The watchdog underlined a warning to the clients against this company.
“The FCA-authorized website to make deals under the name of the firm is rationalfx.com. This FCA authorized firm that fraudsters are claiming to work for has no association with the ‘clone firm,” the authority confirmed.
