New Zealand’s FMA Blacklists Trading Software Provider USI-Tech

New Zealand’s Financial Markets Authority (FMA) updated its warning list on Thursday to include USI-Tech, an operator of a 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 Bitcoin Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. According to the warning, the crypto and forex trading platform provider is offering financial services and products to residents of New Zealand without authorization.

The regulator also warns that the operations of USI-Tech, which is based in Dubai, United Arab Emirates, have the characteristics of a scam. The FMA strongly urges investors not to deal with the company.

USI-Tech claims on its website to enable “smaller” (retail) investors to trade on the forex and Bitcoin markets and “have real success.” Investors can allegedly trade through its online trading software, and the company advertises that “we’ve consistently delivered outstanding results.” USI-Tech operates through https://usitech-int.com/. It is also active on Twitter, Instagram, and Facebook.

The alleged trading platform provider also tells potential investors that they don’t need any expertise in the markets. Claiming that USI-Tech can help traders get started and earn strong returns on their investments. On its website, it also promotes a compensation structure which resembles a pyramid scheme to get people to recruit family and friends to invest.

USI-Tech is flagged by yet another regulator

The warning from the FMA is not the first for USI-Tech. It has drawn the attention of three other financial regulators - Canada’s British Columbia Securities Commission (BCSC), Spain’s Comisión Nacional del Mercado de Valores (CNMV) and the Financial and Consumer Services Commission (FCSC) from New Brunswick, Canada.

BCSC was the first regulator to flag USI-Tech for suspicious activity on December 15, 2018. This was followed by a warning from FCSC which blacklisted the company. This is because it was illegally promoting its products in the New Brunswick province.

The FMA is constantly updating its warning list on its website. These warnings contain a number of financial firms that are operating in the country without authorization. Often, these companies have the characteristics of a scam.

Earlier this month, Finance Magnates reported that the watchdog had added two unregulated firms to its warning list Oak Harbour Limited and Caledonia Investment Company Limited. According to the warnings, both firms have the characteristics of a scam.

Across the world, regulators have their work cut out for them trying to monitor the industry and identify potential scams. For residents in New Zealand, the FMA urges investors to check its website before engaging with any financial firm.