FCA Issues Warning Against Clone Firm YinForex

The Financial Conduct Authority (FCA) today warned the public against a company named Yinforex Capital Limited which it says is a 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 firm of an FCA-authorised company.

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Clone firms imitate companies that hold a license, when actually they are not authorised. They cold call clients and give them misleading information to convince them to invest.

In this case, Yinforex Capital Limited has been using the details of VIBHS Financial Limited. The FCA urges caution when clients receive calls from such companies.

A perusal of the website of the company shows that it is a Chinese firm and among other products, it offers high Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term to customers, allowing them to reduce their margin requirement. It has to be noted that as per FCA rules, brokers are not authorised to offer margins of less than 1 percent to their clients.

The FCA has been issuing warnings about such clone firms regularly over the last few months as a number of such companies have been appearing on its radar.

The FCA advises the public to always refer to the register on its website, which contains a list of authorised firms. The FCA has also requested that the public report clone firms so that the watchdog will be able to take the necessary actions.