New Zealand FMA warns against UFX broker

April 24, 2019 at 06:17 PM

The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, have issued a warning against UFX broker. The regulator believes the registration and regulation information claimed on the website is false and misleading, and that UFX Global Limited could be involved in a scam.

The Financial Markets Authority (FMA) plays a critical role in regulating capital markets and financial services in New Zealand. It is the New Zealand government agency responsible for enforcing securities, financial reporting, and company law as they apply to financial services and securities markets.

UFX is a Forex and CFDs broker, owned and operated by UFX Global Limited. According to the website UFX Global Limited is a company incorporated in the Republic of Vanuatu, regulated by the Vanuatu Financial Services Commission under licence number 14581. Payment Services provided by the company UNITED GLOBAL VENTURES LP, Edinburgh, United Kingdom. They also claim to be licensed and regulated in the EU and adhere to strict regulatory standards. However, the information is false and the broker is not authorized in any EU country as well as in New Zealand.

According to the regulator’s statement, www.ufx.com is based overseas with no presence in New Zealand and does not appear to be subject to regulation by an overseas regulator. The company appears to be targeting New Zealand residents through online advertising. It is not a registered financial service provider in New Zealand and not licensed to issue derivatives in New Zealand.

We always advise traders to avoid dealing with unregulated offshore-based forex brokers like UFX, as most of them are involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the Financial Conduct Authority or the Australian Securities and Investment Commission. You can read our review on this broker here.

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