FSCA warns the public against Forex Traderx

08 April 2021 The Financial Sector Conduct Authority (FSCA)

The Financial Sector Conduct Authority (FSCA) warns the public against doing any financial services business with Forex TraderX, which is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).

According to the information received by the FSCA, the individual running Forex TraderX approaches members of the public on Instagram, where he recruits members of the public to invest into this entity. Members of the public are then directed to the website, where they are provided with a banking account to deposit their investment funds.

It is alleged that trading accounts are also opened on behalf of clients and they can view their trading accounts through the abovementioned website. However, when clients request withdrawal, they are requested to pay more money for “withdrawal fees” but in the end never receive any of their invested funds.

According to their website, the financial products offered by the company include contracts for difference (CFD’s) and “other complex financial products”.

The FSCA confirms that Forex Traderx is not authorised not by the FSCA to render any financial services or financial products and is therefore conducting unathorised financial services business.

Members of the public should always check that an entity or individual is registered with the FSCA to provide Financial Advisory & Intermediary Services and what category of advice it is that the entity is registered to provide. There are instances where persons are Transitional Management Committee: K Gibson (Commissioner) DP Tshidi LP Kekana OB Makhubela registered to provide basic advisory services for a low risk product and then offer services of a far more complex and risky nature.

The FSCA reminds customers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll free number (0800 110 443) or on whether such institution or person is authorised to render financial services.

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