Abstract：A brief explanation of unauthorized brokers who were warned by a certain regulatory authority that they would most likely resume operations under a different name.
Unauthorized brokers are individuals or companies that are not licensed or regulated by a regulatory authority. They may be operating illegally or may not have the proper credentials to provide financial services. A regulatory authority, such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or the Financial Conduct Authority (FCA), may issue warnings or take action against these brokers to protect consumers from fraud or other financial harm. However, it is possible that these unauthorized brokers may continue to operate by using different names or by moving to different jurisdictions, making it difficult for consumers to identify and avoid them. It is important for individuals to conduct due diligence and research any potential broker or financial advisor before investing any money with them.
What are the most important things to do to prevent this from happening？
There are several important steps you can take to avoid falling victim to an unauthorized broker:
Verify the broker's credentials: Always check to see if a broker is registered and licensed with a regulatory authority. You can do this by checking the SEC's Investor.gov website or the National Futures Association's (NFA) Background Affiliation Status Information Center (BASIC).
Research the broker's background: Look for any red flags in the broker's background, such as a history of customer complaints or regulatory actions. You can also check the broker's record with the Financial Industry Regulatory Authority (FINRA) or the NFA.
Investigate the broker's references: Contact the broker's references and ask about their experiences. Be wary of any broker who is unwilling to provide references or who only provides you with positive testimonials.
Be skeptical of unsolicited offers: Be wary of unsolicited offers of investment opportunities, especially if they come from an unfamiliar source. These may be attempts to scam you out of your money.
Be cautious of high-pressure tactics: Be cautious of any broker who uses high-pressure tactics to persuade you to invest, such as insisting that you make a decision quickly or threatening that the opportunity will disappear if you don't act fast.
Avoid offshore brokerages: Be particularly careful of offshore brokerages, which may be operating outside of the jurisdiction of regulatory authorities.
By doing these things, you have a better chance of not getting scammed by an unlicensed broker.
Use the WikiFX App more frequently to avoid falling victim to fraudulent brokers, or contact the WikiFX Support team for assistance in locating a suitable broker.
Nigerian businesses are dealing with a double blow as new naira notes are hard to come by and the old ones' expiration date approaches. Many firms have been pushed by the circumstance to choose electronic channels for transactional purposes in an effort to lessen the volume of obsolete notes coming from their clients.
Due to a gradual increase in demand for dollars, the naira, see a slight loss across market areas which made the Foreign Exchange (FX) market closed out the trading week on Friday.
The Centre for the Promotion of Private Enterprise (CPPE), in the organized private sector, has reiterated the FX market by combining the various rates and making sure the rates are driven by the market. This recommendation follows the sustained depreciation of the naira throughout the year 2022. In an interview with the New Telegraph in Lagos by Dr. Muda Yusuf, the Director and Chief Executive Officer of CPPE. According to him, the official rate had risen to N461/$ and the parallel/BDC rate reached N750/$.
XPro Markets is a South Africa-based broker. This broker claimed to offer clients a couple of financial instruments. It catches our attention because we recently received a complaint related to this broker. WikiFX has comprehensively reviewed XPro Markets from several perspectives.