UK’s FCA warns against unregulated Forex broker FXLeader
UK’s Financial Conduct Authority added another Forex broker to its warning list. According to the regulator, FXLeader has been providing financial services in the UK without their 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. FXLeader operates through the website www.fxleader.com and provides Forex and CFD trading. The broker is owned by Leadernet OU, based in Tallinn, Estonia, although the company is not regulated in Estonia by the Estonian Financial Supervisory Authority. The company uses the services of FXLEADER LTD. having its registered office at the Saint Vincent and the Grenadines as liquidity provider and market-maker. As long as the company is not registered in EU, it actually operates from the offshore area (St. Vincent and the Grenadines). Dealing with the offshore-registered brokers is quite risky, as the clients of offshore brokers basically have no protection in case something goes wrong. None of these companies is obliged to arrange a compensation scheme if the client loses his investments. It is highly recommended for the traders to avoid offshore brokers and invest with brokers supervised by proper regulators, such as FCA in UK, ASIC in Australia or Cysec in Cyprus. All clients of FCA-regulated brokers are protected by the Financial Services Compensation Scheme up to GBP 50,000 per person. You can read our review on this broker here.