FCA has issued a warning against Forex broker PTBanc
UK’s Financial Conduct Authority added another Forex broker to its warning list. According to the regulator, PTBanc has been offering, promoting or selling financial services or products in the UK without its authorization.
The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom. You can read a detailed article about why traders should choose UK brokers.
PTBanc is a broker that offers to trade in many currency pairs and a wide range of CFDs, including on cryptocurrencies. The broker doesn’t disclose any information about its location as well as its regulation, which has to be the first red flag for those who want to invest with PTBanc. There are different contact phone numbers mentioned on the website (British, Spanish, Italian and German), however, the broker does not claim to be regulated by any governmental agency and it obviously isn’t.
The terms and conditions of the website claim that PTBanc is registered offshore, in the Marshall Islands. This is a jurisdiction where Forex license is not required. Moreover, local authority doesn’t issue forex licenses, which mean that the broker is most probably a fraud.
Moreover, the broker has been banned by two other regulators, Italian CONSOB and Luxemburg Commission de Surveillance du Secteur Financier (CSSF), that only proves PTBanc should be avoided by any means. Without proper authorization, there is no way for regulators to protect investors from fraudulent activity, due to a lack of monitoring by any governing body to ensure that proper practices are being adhered to by the companies. You can read our review on this broker here.