The UK Financial Conduct Authority has singled out a brokerage company which is misleading investors across the EU. The company’s name is AMP Trading Group and it is operating via www.amptradinggroup.com.
According to the website, the firm operating the website is registered in the UK. The FCA says that this company is not allowed to onboard clients in the EU. The firm’s registration does not permit it to operate as a brokerage company.
Clone of US Futures Broker
The company is a clone of Chicago-based futures broker AMP Futures. The company is in no way associated with the regulated US company.
Cloning is an increasingly popular method used by scam companies to attract unsuspecting clients. They typically use a well-known brand’s name and sometimes even copy websites.
ESMA’s new regulatory measures, that include a hard cap on Leverage provision on the part of retail brokers, are making life easier for offshore brokers. These firms are looking for traders whose habits to trade with high leverage die hard.
Protecting from Clones
Individual regulators across the EU are hard at work, posting announcements on their sites once they identify such companies. The problem is that the warnings are usually too late for some customers.
Retail investors are advised to look carefully at the website and the corporate entity which is running it.
AMP Trading Group or AMP Trading LTD are both entities which are singled out by the UK regulator. The FCA, the French AMF, the Belgian FSMA and the Cypriot CySEC all maintain lists and issue regular warnings against unregulated companies.
Cold Calls
Clone companies typically use unsolicited phone calls to onboard new clients. The FCA has been saying for some time that UK residents should be vigilant about cold calls.
Call centres, typically located in eastern European countries outside of the EU, are used to onboard clients to unregulated brokers. Countries such as Bosnia and Herzegovina, Serbia, Ukraine and Georgia are preferred by scam brokers.
