The Financial Conduct Authority (FCA) has warned consumers not to engage with “XTB Online,” a firm it says is offering financial services without authorization while using the branding of legitimate broker XTB.

The FCA said “XTB Online” is claiming to operate out of London’s Canary Wharf, using the address One Canada Square, and has listed a website and support email that may appear genuine at first glance.

However, according to the watchdog, the firm is not authorized to offer financial services in the UK and is not affiliated with the real XTB entity regulated under FCA rules.

“This firm may be providing or promoting financial services or products without our permission. You should avoid dealing with this firm and beware of scams. This firm is not authorised by us and may be targeting people in the UK,” the agency wrote.

Bogus Website and Fake Contact Details

According to the regulator, clone firms often use real company information, including postal addresses and branding elements, to mislead potential investors. In this case, “XTB Online” uses a near-identical name and a London address to convince targets that it is a legitimate operation.

The firm’s website, xtbonline.com, is not affiliated with the authorized broker XTB, which operates under a separate FCA registration. The FCA noted that victims of such scams typically lose access to both their funds and any form of legal recourse.

“If you deal with this firm, you won’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme,” the FCA said in its warning.

No Consumer Protection If Things Go Wrong

The watchdog made it clear that anyone doing business with XTB Online will not be covered by key financial protections in the UK. This means that if the firm collapses or disappears with investor funds, there is little chance of getting money back.

The FCA urged consumers to always check its Firm Checker before engaging with any company offering investment, trading, or financial services.

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The FCA warned the public to be cautious of unexpected contact from firms claiming to be regulated. “Always verify a firm’s contact details against the information listed on our register,” it said.

Interestingly, the FCA issued another warning in 2023 involving a firm mimicking XTB. According to the agency, the publicly listed and regulated broker XTB had been illegally impersonated by an unauthorized firm in an attempt to scam investors.

The clone company “XTB Trading World” reportedly contacted UK residents claiming to be associated with XTB Limited, an FCA-authorized company. However, the FCA confirmed that the company had no relationship with the authorized XTB.

This article was written by Jared Kirui at www.financemagnates.com.Retail FXRead More

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