FCA Uncovers Clone Firms Targeting Online Broker Darwinex

Another clone firm has been identified in the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) and cryptocurrency industries. On Tuesday, the Financial Conduct Authority (FCA) posted a warning against a clone firm of Tradeslide Trading Tech Limited, otherwise known as Darwinex.

The clone firm goes by three names, StockotradeFX, Ultimatecryptofx, Tradevibefx, and operates via three websites - www.tradevibefx.com, www.ultimatecryptofx.com, www.stockotradefx.com.

All three websites, state that they are “owned by Tradeslide Trading Tech Limited, a company duly authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with FRN 586466.”

FCA: there is no connection with Darwinex

However, yesterday’s warning from the British regulator, clearly states that the three entities have no connection whatsoever with the legitimate and FCA-authorised firm Tradeslide Trading Tech Limited (Darwinex).

As the name suggests, clone firms are fraudulent entities which copy details of a legitimate firm, such as their name, website, address, registration details, etc. Some even go to the lengths of completely copying a firm – from their website, to brand, in order to trick investors into thinking that they are the actual legitimate firm.

Although the entity operates via three URLs, all websites appear to be largely the same and have copied the design of Dawinex's website. One the front page of each website, the entity claims it is: “The online brokerage that allows sophisticated traders to trade the market and investors to back them.” - the same statement made of Darwinex's site.

The correct details of the legitimate firm are as follows:

Firm Name: Tradeslide Trading Tech Limited (Darwinex)

Firm Reference Number: 586466

In its warning, the UK watchdog states: "We strongly advise you to only deal with financial firms that are authorised by us, and check the Financial Services Register to ensure they are. It has information on firms and individuals that are, or have been, regulated by us."

Clone firms are a big problem in the foreign exchange (forex) and cryptocurrency sectors. As Finance Magnates has reported, Tickmill, Dukascopy Bank and broker-dealer ICAP, among others, have all been targeted by clone firms.