The UK financial regulator, the Financial Conduct Authority (FCA ), warned on Monday that a financial company is illegally operating in the country and allegedly cloning XTB.
According to the advisory published on its website, the British watchdog believes xtbtradingfx.com may be providing financial services in the UK without their authorization. “This firm is not authorized by us and is targeting people in the UK. You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong,” the FCA warned.
The broker’s name seems to be a clear reference to XTB, a broker that belongs to XTB Group, whose branch in the UK, XTB Limited, is regulated by the FCA. However, it does not clone any of the logos or services offered by XTB Group. In fact, XTB Trading promotes itself as a crypto services provider based in London.
“Dealing with financial firms that are authorized or registered by us gives you greater protection if things go wrong,” the watchdog pointed out. “If you used an authorized firm or registered firm, access to the Financial Ombudsman Service and FSCS protection will depend on the investment you are making, the service the firm is providing, and the permissions the firm has. If you would like further information about protection, the authorized or registered firm should be able to help,” the FCA added.
Recent FCA Warnings
Recently, Finance Magnates reported that the FCA warned about Alpha Crypto Trade FX Ltd, as it is not an authorized company to provide financial services or products in the country. According to the advisory organization, the company is allegedly targeting people based in the United Kingdom.
Alpha Crypto Trade FX Ltd is operating under a US-based address, and its website remains functional.
