We start the new week with an update to the warning list from the Spanish regulator, the National Securities Market Commission (CNMV). It cautions against the activities of seven different entities lacking proper authorization to provide financial services. Among them are clones of three popular FX and CFD firms.

Watch Out for More Clones, This Time of AvaTrade, LCG, and JFD

According to the warning list published today (Monday), CNMV draws attention to several new entities that “are not registered in the corresponding registry of this Commission and, therefore, are not authorized to provide investment services or other activities subject to the CNMV's supervision.”

The list includes entities such as Capital Finexp, LBank, Coinrisen, and Immediate Edge, as well as three clones of popular brokerage brands. The first is a copy of AvaTrade called AvaTraex (the website avatradeez.com is currently unresponsive).

Another clone is London Capital FX, impersonating the LCG brand. However, its website londoncapitalfx.eu also appears to be unresponsive at present. The last broker clone that the Spanish regulator warned about on Monday is JFD Group, masquerading as JFD Brokers.

@cnmv new warning list, including clones of @AvaTrade @LCGTrading and @JFD_Group pic.twitter.com/JjINV0Ob1M

— Damian Chmiel (@ChmielDk) September 9, 2024

This isn't the first time CNMV has warned about clones of popular brokerage brands. As Finance Magnates recently reported, the regulator also added clones of IG Group and StoneX to its warning list.

Clone Wars

Almost every week, the industry receives signals from various parts of the world about clones of more brokers. Although regulators (and CFD firms themselves) try to combat this practice, their efforts prove ineffective.

Clone websites pose significant dangers in the FX/CFD industry, threatening both brokers and traders alike. These fraudulent sites mimic legitimate companies or regulatory bodies, aiming to deceive unsuspecting individuals.

A few weeks ago, the UK’s FCA reported another clone Clone A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for Read this Term of XTB broker, which almost exactly copied the website of the Polish fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term.

Earlier, the German BaFin warned about a clone of Pepperstone, one of the “favorite” brokers among scammers and simultaneously one of the most frequently cloned.

Recently, the Belgian FSMA also drew attention to clones, highlighting two copied firms on its list of over 40 potentially fraudulent trading companies: BNP Paribas and CMC Markets.

To protect themselves, investors should always verify the authenticity of a broker's website by checking official regulatory databases and being wary of unsolicited offers or deals that seem too good to be true.