The United Kingdom’s financial markets regulator has issued a warning against two forex/CFDs platforms, Saxo 24 FX and One Zero Trade. The watchdog said both platforms are targeting UK investors without being authorized to operate in the country.
FCA Flags Two Illegal Trading Platforms
The Financial Conduct Authority (FCA) sounded the warning on Friday in separate updates posted to its website, urging investors to “avoid dealing with this firm and beware of potential scams.” According to the regulator, the platforms operate the websites, www.saxo-24fx.com, and www.onezerotrade.com, respectively.
Saxo 24 FX, which claims to have been under UK regulation since 2005, provides its clients with CFDs, stocks, commodities, forex, cryptocurrencies and futures trading opportunities, according to details on its website. The platform is branded similarly to Saxo Bank, a Danish investment bank that specializes in online trading and investment. However, the FCA did not state if the Salford-based platform is a clone of the popular Danish firm.
On the other hand, One Zero Trade provides its clients with access to CFDs on forex, digital assets and commodities, according to its website. However, the brokerage shares a similar brand name with a popular firm, OneZero Financial Systems, which is a multi-asset enterprise trading technology developer. However, just as in the previous case, the FCA did not mention if One Zero Trade is a clone of the trading technology provider.
FCA Seeks Greater Investor Protection
In 2022, the FCA launched a three-year strategic plan to “improve outcomes for consumers in markets throughout the UK.” A crucial aspect of the FCA's strategy involves closing down businesses that fail to comply with fundamental regulations.
Earlier this month, the regulator, which entered the second year of the three-year strategy, published its business plan for 2023-2024, setting a roadmap for the next 12 months. In a statement, the UK regulator noted that it plans to commit more resources and additional investments to four primary areas of its work. These areas include concentrating on consumers' needs, preparing financial services for the future, strengthening the position of the UK in the global wholesale markets and reducing and preventing financial crimes.
The FCA’s new regulatory roadmap was published a month after the regulator cracked down on unregistered crypto ATMs operating in East London. The regulator warned the public against using the unregulated machines, noting that they may facilitate money laundering and other criminal activities.
Meanwhile, in 2022, the British regulator flagged down 1,800 potential financial cases of fraud, increased the clamp down on more rogue financial ads by 1,400% and hired 1,000 new officers to better protect consumers from financial harm.
