The British financial regulator has issued a warning against Stock Trade Invest, a forex and CFD broker, operating without a license in the UK.
The Financial Conduct Authority (FCA) says that Stocktradeinvest Ltd., the company behind the broker, has been providing financial services or products in the UK without authorization. Stock Trade Invest website is www.stocktradeinvest.com.
The financial watchdog, one of the most respected in the sector, reminds traders that all companies and individuals offering, promoting or selling financial services or products in the UK should be licensed by them.
“However, some firms act without our authorization and some knowingly run investment scams. This firm is not authorized by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorization”, FCA says in a statement.
In addition FCA strongly advises all potential investors in the UK to deal only with financial firms that are authorized by them and to check the companies’ licenses in the Financial Services Register.
The regulator also warns that any funds, invested with unauthorized companies, are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS).
Under FSCS traders with FCA regulated brokers are entitled to a compensation of up to 50 000 GBP in case their broker is unable to pay.