UK’s FCA adds EU-Capital to its warning list
The Financial Conduct Authority (FCA), the UK financial regulator, has issued a warning about EU-Capital, an online entity claiming to provide forex trading. The broker has been providing its financial services to UK customers without being authorized in the country.
EU-Capital (which operates from the eu-capital.co website) is a Forex and CFD broker. EU-Capital offers a relatively wide variety of forex pairs, as well as CFDs on commodities, indices, a few specific stocks and even cryptocurrencies. The platform is owned by a Marshall Islands-based holding company called Gelko Partners LTD. Their registered office address is at Trust company complex, Ajeltake Road, Ajeltake Islands, Majuro, MH96960 Marshall Islands. The Marshall Islands is an offshore destination where usually brokerage services are not regulated. The biggest concern is that there is no information about the legal entity behind EU-Capital. All legitimate firms provide an actual company with a place of registration and which is registered with a trusted financial regulator. Doing business with offshore brokers is extremely risky and it is highly recommended to avoid such companies and to select among brokers licensed by the respective authorities in the UK, or Australia for example. For instance, a broker registered with the UK’s FCA can’t simply take investor’s money and disappear. They follow multiple reporting procedures and have to keep client funds segregated from the company’s. They are also involved in the Financial Services Compensation Scheme (FSCS). It is a fund that works as an insurance company for the brokerage firms and their investments. You can read our review on this broker here.