FCA warns of fraudsters and fines more than £ 0,5m on 'signal provider'

The Forex and cryptocurrency markets have been booming in recent quarters. Thousands of new clients with brokers and the flood of people willing to invest in cryptocurrencies also make more scammers appear. British financial supervision is warning about them, Financial Conduct Authority (FCA), which not only calls for caution but also imposes huge penalties.

The FCA information campaign is underway in the British media. It focuses primarily on young investors, which may be surprising, because in Poland, frauds are mainly popularized among older people. Meanwhile, it turns out that it is the young people who take the greatest financial risk when investing. 

"Research shows that there is a new, younger, more diverse group of consumers who are engaging in higher-risk investments, which may be partly due to the availability offered by new investment applications." - we read in the announcement FCA.

Of course, investing in the Forex market involves a lot of risk, but the same research shows that young people do not direct funds to the market, the loss of which will not change their financial status. 2/3 of them directly say that if they lose their invested money, their lifestyle will have to change. Many of them react emotionally to the market and start investing not because they are knowledgeable about the financial market, but because it is fashionable. 38% of people do not even know why they invest in these and not other financial instruments!

FCA: mutual funds earn 1%

The FCA warning in comparison with the "Golden mountains"promised by many ads. Well, the supervision shows that the guaranteed rate of return offered by some investment funds is ... 1 (in words: one) percent. All the rest "Forecasted, possible, record-breaking" and profits like this, it's nothing but marketing. 

Be sure to read: TOP5 - the most popular scams under the guise of the Forex market

Therefore, the FCA reminds you that you can report financial frauds to it, also anonymously. This is to reach e.g. to employees of dishonest companies who, thanks to the secret contact form, will not be exposed by the employer.

530 thous. fine for pounds "CFD signal providers"

At the same time, the FCA announced the imposition of another penalty on the dishonest provider of trading signals - 24HR Trading Academy Limited. He will pay a fine of £ 530.

Company leader Mohammed Fuaath Haj Maideen Maricar was selling signals on CFD, Commodity and Currency markets. It was enough to pay for the subscription and you would get regular sending of signals, which of course would allow you to achieve above-average profits.  The problem was that the company did not have a license to provide financial advice. So not only was a penalty imposed on her, but also ordered to terminate her activity. Okay, but maybe it just ran out "Paper"and the results were? None of these things.

"Neither 24HR Trading nor Mr. Maricar were permitted to provide investment advice, which in this case involved sending trading signals via social media, and their conduct risked significant losses to clients." Said Mark Steward, executive director of market surveillance at FCA.

The company did not care about other regulations at all. She also dealt with affiliation for VantageFX and AvaTrade. She received a commission based on the number of customers from VantageFX, which allowed for a profit of £ 95 from September 093, 13 to September 2017, 12. Anyway, the company's director himself "He made extra money" thanks to his own referral links through which his signal subscribers registered with brokers. Thanks to this, he gained another 435 British pounds. Everything will now have to hand over to FCA.