UK’s FCA warns against forex broker SolidCFD

I wonder if the forthcoming ESMA restrictions in the UK might drive some reputable firms out of the CFD market, leading to an unfulfilled demand from new traders, and so encouraging unscrupulous off-shore firms to chance their arm like this one. That would be ironic for ESMA and the FCA.....
 
mlawson71 said:
Back when ESMA first announced its plans some of the biggest brokers on the market were cautiously supportive, but whether they will change this tune once the plans become a reality remains to be seen.
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Tougher regulations always help the big players - they will have the resources and it creates a barrier to entry for newer smaller players. They will support if they think they'll get a bigger market share, ironically even if that means a smaller market overall.
 
tomorton said:
Tougher regulations always help the big players - they will have the resources and it creates a barrier to entry for newer smaller players. They will support if they think they'll get a bigger market share, ironically even if that means a smaller market overall.
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That's a good point. I hadn't thought of it like that.
 
The UK Financial Conduct Authority (FCA) also warned against Safemarkets and IDB Trades earlier this week. According to the regulator, the two forex brokerages have been providing financial services in the country without being authorized.

Safemarkets claims it's offering trading with cryptocurrencies and Forex, but provides no information about its trading conditions, nor does it provide a demo account. The other broker is registered in Vanuatu - the offshore zone that requires just $2000 initial investment to give a broker license. Talk about bucketshops.
 
Another warning from the FCA, this time against the forex and CFD broker KayaFX. The warning is issued because KayaFX offers its services in the UK without having the proper authorization.

According to the broker they are based in Tallinn, Estonia, but there is no regulatory information. The company owning the broker – GammaTech Services – has a license for a currency exchange from the country’s Ministry of Economy, but this does not mean the company is regulated.
There are multiple client complaints that the broker is a scam.
 
UK’s financial markets and services provider, the Financial Conduct Authority (FCA) has published a warning against forex broker GreenFields Capital. The broker is doing business in the UK and targeting local citizens without having the required authorization, the FCA said.

The broker is owned and operated by Premium Peak Ltd T. It provides two addresses: one in London, UK, and another in Prague, the Czech Republic, but mentions nothing about license, nor regulation.
 
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