The global forex and binary options market continues to grow as investor from around the world are looking for ways to increase their earnings.
However, the volatility of the market makes it a risky venture and susceptible to fraud.
This is why when Cyprus Securities and Exchange Commission (CySEC) and the UK’s Financial Conduct Authority (FCA) recently released warnings about specific traders, you should pay attention to.
Here are some recent notifications from the two financial regulators.
CySEC’s warning are mainly against two sites. They are Go Capital FX (gocapitalfx.com) and World Binary Option (www.worldbinaryoption.com), which both offer trading services to interested customers.
For gocapitalfx.com, CySEC warns that the website is not connected with any entity that is authorized in Cyprus to carry out investment activities. Checking the URL, the company claims to provide trading services for various assets that include forex, futures, and more.
Additionally, the trader also claims that it gives customers access to the MetaTrader 4 platform. This platform allows for traders to access trading options on multiple platforms that include mobile, desktop, web and for Mac OS devices.
The second website www.worldbinaryoption.com is also supposedly not connected to any entity that has authorization from Cyprus authorities to carry out any financial services. The information on the website hints that the site is connected to a US-based entity and has been approved by the Commodity Futures Trading Commission (CFTC), the International Financial Services Commission (IFSC) in Belize, the FCA, and CySEC. All of these claims are misleading and are not true.
It is not just CySEC looking into these false sites. The FCA has also issued a warning involving gocapitalfx.com and a connected site. The main warning is about Capital Tech Limited and its brand PBN Capital.
In a statement, the FCA said
Capital Tech Limited has been providing financial services or products in the UK without our authorization. This firm is not authorised 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
The main website is connected to PBN Capital but there is an interesting twist to it. Anyone dialing the contact number provided is directed to a voice mail that is the same used by Go Capital FX. Though it is not clear how the two sites are linked, the PBN Capital website offers the same services that Go Capital FX offers, along with access to the MetaTrader 4 platform.
Both regulators warn potential traders to consult with regulatory sites first before trading to be sure that they are working with legitimate traders.