The UK Financial Conduct Authority (FCA) has issued a warning against GSI Markets for operating in the United Kingdom without a license.
GSI Markets, a binary options brokerage, has been offering clients trading related services including financial advice. Given that the company has not been authorized to solicit clients in the UK, its actions are in violation of British law.
This broker claims an office at 207 Regent Street, London, W1B 3HH, England.
The British regulator advises strongly against trading or funding an account with this broker. Clients trading with unauthorized brokerages will not be eligible to receive assistance from the regulatory authority should something go awry.
Despite regulators worldwide becoming more unified in tightening their restrictions, unauthorized brokerages are hard to ban due to their ever-growing numbers. The FCA alone is adding several brands to its blacklist on a monthly basis, mainly for operating without being registered with the regulator.
Earlier this month, the FCA issued a warning against TraderVC, a forex and CFD retail broker, for illegally operating on the financial watchdog’s turf. FX Markets Capital, another retail forex trading firm, also found itself in hot water after attempting to pull a similar stunt.
While some brokers are simply not authorized, others attempt to clone registered companies in order to confuse clients. OneTrade was caught red handed copying the name of a firm that had received the green light by the FCA.