The Netherlands Authority for the Financial Markets (AFM) has issued a warning today against the unlicensed broker, Ftradition Ltd. The name of the company also sounds a bit like the Swiss broker, Financière Tradition, but Ftradition does not claim to be related to it in any way so it is not a clone but rather just unlicensed.
The Dutch financial watchdog warns European investors not to respond to offers from Ftradition Ltd. as the regulator say this company is suspected of being a boiler room. A boiler room, the AFM explains, is a collective term for fraudulent individuals and organizations using “clever salespeople” to call potential investors to pressure them into buying shares that promise high returns (cold calling).
AFM says that it has found out that Ftradition Ltd. has indeed approached people without being asked, for the purpose of offering them investment proposals. As for the investment offers, the regulator says that: “In reality the shares are either worthless or non-existent.” The AFM has also established that Ftradition Ltd. does not have an AFM license allowing it to operate in the Netherlands, nor any European Passport compliant financial license.
Ftradition claims to offer “Stock Exchange Products” on its website but in some sections it also calls itself “ForexTradition.” At any rate, the broker seems to focus mostly on CFDs. Additionally, Ftradition says it is located in Mahe, Seychelles but the website domain address is registered by a company in France, and that might explain the European involvement.