Unregulated Forex brokerage GoldFXTrading is the latest addition to the long warning list of the Financial Conduct Authority in the UK. The firm has been recognized as an unauthorized financial services provider.
According to the official warning the firm does not hold the proper license by the FCA for providing financial services to British traders and is operating outside the law.
GoldFX Trading is supposedly owned and operated by the company GFT with a London address. We read on the brokerage’s website – web.goldfxtrading.com – that the company is licensed and “regulated” by the British financial regulator the FCA and even gives a phony reference number in order to make it more believable. The brokerage further provides traders with access to the MetaTrader 4 trading platform and extends them a generous leverage.
Actually, the shady brokerage is what we call a “clone firm” of a legitimate and FCA regulated firm registered with the name Gain Capital UK Limited. Scammers often choose to operate in such a manner in order to lend themselves legitimacy and mislead inexperienced traders.
However, according to the official warning issued by the British financial watchdog – the information regarding the regulatory status of the brokerage presented on the website is false and the firm is further suspected of being involved in investment scams.
The FCA has provided traders with a consumer helpline and urges anyone that has been “cold called” or targeted in any way by representatives of GoldFX Trading to reach them on 0800 111 6768. UK’s main financial regulator regularly updates its warning list and recommends traders always run a quick check on a brokerage on their online registry before investing funds with them.