CySec has issued warning against SiliconValley Markets and fxttcm.co.uk, as there are others regulated forex brokerages who operate under similar domains.

On Friday last week (14/3), leaprate reported that CySec, Cyprus financial authority, has issued warning against two forex companies, one by the name SiliconValley Markets and another who is operated under fxttcm.co.uk domain. Hmm, does that domain sounds familiar to you? It does sounds so to me, as there is another well-known, regulated forex brokerage who operates under quite similar domain (hint: check our broker directory).

cysec warning against copycats

 

Don't Feed The Copycats

This is not the first time such lookalikes appear on the scene with much less legitimacy than the originals. On August last year, CySec apprised the public of CF Invest Ltd. who operated under www.cfinvestltd.com. The company claimed to be licensed by CySec, when in fact, it was not. However, there is another similar-sounding company regulated by CySec, that is CFI Markets whose site is in www.cfimarkets.com.

In October, CySec warned www.depahofx.com based on the same allegation. The company said that they are based in Nicosia, but CySec clearly stated that the company is not licensed by CySec. Although there is a licensed Depaho Ltd who operates www.gtcm.com. The good news is, CF Invest and Depaho Fx seemed no longer online. The bad news, there are another.

In November, Hongkong Monetary Authority (HKMA) warned investor against www.rbsfx.co.uk. The domain name made it sounds as if it is related to the well-known RBS (Royal Bank of Scotland), when in fact, they has no connection whatsoever. There are banks who own a retail forex brokerage, but RBS did not own RBSFX.

 

Recognize The Originals

Now, do you see a pattern here? There is already at least four copycats, in different period. We wonder, whether there is someone out there who tries to exploit people's ignorance about retail forex. Once he/she/they are being found out, they ran and establish a new one. Since their latest con has just discovered, guess where will they run to!? For certain, it will be somewhere around us. So, to avoid of being cheated by similar scheme we want to give you some advices on recognizing legit broker domain.

First and foremost, do some googling to ascertain that the company is mentioned elsewhere in the net, and do check, in what capacity the mention is. Second, see the content of the website, and check whether their content is true or not. In the old cases above, they claimed to be regulated with certain authorities, when in fact, they don't. You can check in the mentioned authorities website if they have a list of licensed companies, or send an email to ask about the website's claim. Third, join forex forums where you can talk with fellow traders. The advance of internet have made it easier for people to create scams, but it also increase the power of community. There are always people out there who can help you verify the things you are unsure about. Plus, they can give you advices on which brokers are bonafide and deserve your trust.

 

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