UK’s FCA warns of clone of social trading broker ayondo markets

UK’s FCA warns of clone of social trading broker ayondo markets

UK’s Financial Conduct Authority (FCA)has warned that Ayondo Markets Ltd is a clone firm of FCA-licensed social trading company ayondo markets Limited, a warning notice issued on Thursday on the regulator’s website indicated.

The clone broker is using the details of the genuine broker, aiming to convince investors it works with the authorized company. In fact, the clone is not associated in any way with the licensed broker. The regulator noted that scammers may give out false details or some correct details of the authorized firm.

The fraudulent company operated via the website www.ayondo-marketsltd.com, while the website of the licensed ayondo markets is www.ayondo.com.

ayondo markets is the broker platform for the social trading services of ayondo GmbH, a German online marketplace for real-time trading signals. It offers spread betting and contracts for difference (CFDs) of forex, commodities, indices and stocks. It uses the ayondo proprietary white-label trading platform TradeHub.

Social trading networks allow investors to trade, follow other fellow traders and copy their trades, or get followed themselves. It is especially suitable for traders with little or no experience. Other social trading platforms on the CFDs market are eToro, ZuluTradeTradeo, and Tradency among others.

Also on Thursday, the FCA said the number of reports it receives on unauthorized, but operational forex brokers has been increasing. However, it did not provide any figures.

The watchdog asked traders to report clone brokers if they have any suspicions they may be conducting financial services, using details of other brokers. The FCA keeps a register of licensed companies that fall under its regulation and meet certain requirements. All other entities not included in the list may appear to be a scam.

Investment companies not licensed by in the UK or any other EU country are not allowed to target UK citizens and provide their products and services in the country. If a brokers is authorized in an EU country, it can operate in all other member states.

We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.

Source: FCA

 

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