The British financial watchdog, Financial Conduct Authority (FCA), recently issued an official warning and alert to another unregulated forex broker CMS Trader.
On the official warning from FCA, it states, “We believe this firm has been providing financial services or products in the UK without our authorization.”
The FCA noted that although not all financial service providers or brokerage websites were required an authorization from the regulatory board, most businesses and firms in the industry are still advised to comply with the rules and regulations set by the regulatory agency.
CMS Trader also comes in a different trading name of Pandorx Ventures Limited and claims that the brokerage firm offers clients an access to Saudi Arabian stocks trading as well as traditional forex and commodities trading, which is available to UK-based investors as well.
Earlier in the year, CMS Trader already received a similar warning from Canadian regulatory board, the Ontario Securities Commission (OSC). According to the warning, OSC has informed clients that the broker is currently operating in Ontario, Canada even though it was not regulated by the local board to engage in the business of trading in securities or advising anyone with respect to investing in, buying or selling securities.
The broker firm caught the attention of regulatory boards when various types of online reviews has surfaced with complains about the questionable transactions they are having with CMS Trader.
The company is headquartered at 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ and also in Waterloo Station, Waterloo Road, London, SE1 8SW, and operates online via http://www.cmstrader.com.
During the OSC warning, the website shows that the company has offices in London, Hong Kong, Paris, Limassol, and Manama, then on a later date, the office locations were changed to Dominica, Paris, New Zealand, and Manama.
However, when the website was visited on a later date after the warnings from FCA and OSC were issued, the site was no longer available for access.
The FCA constantly notifies investors to only engage with regulated firms to avoid any further problems and also to be cautious of the brokers before doing any more business with them. Furthermore, FCA warns traders that any victims of scam brokers will not be covered by the Financial Ombudsman service or the Financial Services Compensation Scheme (FSCS) if ever things go wrong.