UK Watchdog Warns about Ftradition, a Suspected Seychelles Clone

The UK’s Financial Conduct Authority (FCA) issued a warning to the public today against another broker it calls a clone firm. The regulator says FTradition (or 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 Tradition) is passing itself off as a member of the Tradition Group, an international group of brokers that is FCA authorised.

In December 2014, the Netherlands Authority for the Financial Markets (AFM) also issued a warning against the unlicensed Seychelles broker. The Dutch financial watchdog warned European investors not to respond to offers from Ftradition as the company is suspected of being a boiler room. A boiler room, the AFM explains, is a collective term for fraudulent individuals and organizations using “clever salespeople” to call potential investors to pressure them into buying shares that promise high returns (cold calling).

The FCA warns against trusting cold calls from the broker but does not claim reports of it happening. AFM has said in the past that it found that Ftradition Ltd. approached people without being asked for the purpose of offering them investment proposals.

Ftradition claims to offer “Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term Products” on its website but in some sections it also calls itself “ForexTradition.” At any rate, the broker seems to focus mostly on CFDs. Additionally, Ftradition says it is located in Mahe, Seychelles but the website domain address is registered by a company in France and it has a UK office branch. That might explain the European involvement.

As for the investment offers, the Dutch regulator said that: “In reality the shares are either worthless or non-existent.” The AFM has also established that Ftradition Ltd. does not have any European-compliant financial licenses.