FxPro is one of the most well-known online forex (FX) and CFDs brokers in the world. With clients in over 170 countries, FxPro is undoubtedly a safe and reliable broker. However, because of the broker’s popularity, several clone firms are using FxPro’s name and scamming people with their hard-earned money.
Read more about the clone firms and how to spot them before they target you, too.
What is FxPro?
FxPro is an international broker based in London, United Kingdom, that has been providing trading services since its establishment in 1999.
At present, the broker has an international client base of over 7,800,000 individuals across 173 countries. There’s no denying that FxPro has built a strong reputation in the financial industry.
The broker offers a wide range of financial instruments, including forex, shares, energy, cryptocurrency, indices, futures, and metals.
Moreover, FxPro provides access to several popular trading platforms, such as MetaTrader 5 (MT5), MetaTrader (MT4), and cTrader, to accommodate varying trading preferences. They also have a proprietary platform called FxPro WebTrader.
The FxPro minimum deposit (ZAR) for Standard Accounts is R1,700, and the FxPro withdrawal time is usually one working day.
Want to learn more about FxPro? Our FxPro Broker Review is coming soon.
Where is FxPro regulated?
FxPro is regulated by a total of five regulators in different jurisdictions.
Here’s a quick overview of their regulatory information.
| Regulator | Country | Registered Name | Registration No. |
|---|---|---|---|
| Financial Conduct Authority (FCA) | United Kingdom | FxPro UK Limited | 509956 |
| Financial Sector Conduct Authority (FSCA) | South Africa | FxPro Financial Services Limited | 45052 |
| Security Commission of the Bahamas (SCB) | The Bahamas | FxPro Global Markets | SIA-F184 |
| Financial Services Authority of Seychelles (FSA) | Seychelles | FxPro Global Markets Ltd in partnership with Invemonde Trading Ltd | SD120 |
Financial Conduct Authority in the United Kingdom
FxPro is authorized and regulated by the Financial Conduct Authority as FxPro UK Limited with Registration Number 509956.
The FCA is a globally recognized top-tier regulatory body in the United Kingdom for its stringent regulations and monitoring.
Moreover, FxPro stores client funds in major international banks and strictly segregates client funds from company funds.
Financial Sector Conduct Authority (FSCA) in South Africa
FxPro is regulated as FxPro Financial Services Limited by the FSCA with Financial Service Provide Number 45052.
The FSCA is an independent regulatory authority for non-banking services in South Africa.
Security Commission of the Bahamas (SCB) in The Bahamas
The broker FxPro has a License No. SIA-F184 at the SCB and is registered as FxPro Global Markets.
The SCB is considered a mid-tier regulator but is recognized for its efforts to maintain a stable and transparent financial environment.
Financial Services Authority of Seychelles (FSA) in Seychelles
In Seychelles, FxPro Global Markets Ltd is registered in partnership with Invemonde Trading Ltd as an Investment Dealer and with a License Number of SD120.
Read more: Financial Regulatory Agencies Worldwide
Seychelles is a popular offshore regulator that oversees financial services in offshore jurisdictions. However, offshore regulators may not have the same level of oversight and enforcement as top-tier regulators such as the FCA in the UK.
When choosing a broker, it is preferable that both top-tier and offshore regulators regulate them.
Regulators Warn of FxPro Clone Firms
Regulators worldwide have issued warnings against firms using FxPro’s name and likeness to scam and steal money from traders.
The Financial Conduct Authority (FCA) released a warning that fraudsters were using the name Fx Pro, displaying stolen license numbers, and imitating the website to mislead people into thinking they were dealing with the regulated FxPro.
The fake Fx Pro clone firm promised investors unrealistic high returns, claiming returns of up to 25% per month.
Moreover, the fake Fx Pro was also linked to scamming the FCA. As it turns out, the fraudsters had called the FCA, claiming to represent Fx Pro, and asked to change the legitimate company’s contact details on the register. They claimed that the contact details were out of date.
This is a tactic used by clone firms to appear more genuine. Their contact and website details appear on the regulator’s database, making them look like legitimate entities.
What are Clone Firms?
Clone firms are a type of scam when unauthorized groups or individuals pose as legitimate and regulated financial service providers.
These clone firms use the legitimate company’s name, logo, website design, regulations, and license numbers.
Clone firms target victims’ money, but that is not the only valuable thing they steal from traders. Clone firms also steal information.
A representative from the clone firm will try to get personal information such as your address, phone number, email, and even your family’s details. The stolen information is often sold on the dark web to other scammers.
According to various regulators, clone firms have increased since the pandemic. According to Statista, the rise of remote work and increased online activity during the pandemic created more opportunities for fraudsters to target people. Moreover, the economic uncertainty left individuals more vulnerable to such scams as more people tried to find more ways to earn money.
How do FXPro Clones Scam People?
Almost all clone firms operate with the same structure.
First, these firms imitate a well-known and legitimate broker to lure victims in with a false sense of security. They often create fake websites that highly resemble the original firm ad and then use generic emails that look genuine.
For instance, the official FxPro support email address is [email protected]. To appear legit, a clone might use a generic looking email like [email protected].
Second, clone firms will contact victims through unsolicited phone calls, emails, social media posts, or even newsletters.
Third, they will offer attractive and too-good-to-be-true investments. For instance, the fake Fx Pro promised investors 25% monthly returns if they invested in a certain stock. However, this stock is often nonexistent or non-tradable.
Once victims are convinced, the fourth step is to collect the funds that the victim has invested. Once transferred, the victims are unlikely to recover their money back.
Read more: How to Recover Scammed Money in South Africa in 2024
The final step in clone scams is disappearance. After the scammer collects the funds, it will be nearly impossible for victims to contact them again.
Is FxPro safe to trade with?
Yes, FxPro is generally considered a safe broker. FxPro is regulated by several top-tier authorities, as well as mid-tier and low-tier regulators.
However, always exercise extra caution about clone firms. Because of FxPro’s popularity and reputation, it is highly likely that more fraudsters will imitate FxPro and try to pass off as legitimate businesses to steal money.
As more and more scams pop up, it is essential for traders to practice safety and vigilance.
Here are a few tips to ensure that a chosen broker is trustworthy so traders can protect their investments.
- Verify the broker’s license number through their regulator’s official website.
- Study FSCA legal and regulatory frameworks.
- Traders should familiarize themselves with the regulatory frameworks of other authorities.
- Double-check fee structures and hidden charges, if there are any.
- Check other verified traders’ reviews of Global TradeATF online. Make sure that the review platform is legit and that the traders giving the review are verified! Some platforms have manufactured reviews.
These steps allow traders to protect their investments and make better, informed decisions.
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