The UK has singled out a brokerage company which is misleading investors across the EU. The company’s name is AMP Trading Group and its operating via www.amptradinggroup.com.
According to the website, the firm operating the website is registered in the UK. The FCA is highlighting that the company is not allowed to onboard clients in the EU. The firm’s registration does not permit it to operate as a brokerage company.
Clone of US Futures Broker
The company of Chicago-based futures broker AMP Futures. The company is in no way associated with the regulated US company.
Clones are methods by scam companies to attract unsuspecting clients. They typically use a well-known brand’s name and sometimes even copy websites.
ESMA’s new regulatory measures that include a hard cap on leverage provision on part of retail brokers are making life easier for offshore brokers. Those are looking for traders whose habits to trade with high leverage die old.
Protecting from Clones
Individual regulators across the EU are hard at work, posting announcements on their sites once they identify such companies. The problem is that such warnings are usually too late for some customers.
Retail investors are advised to look carefully at the website and the corporate entity which is running it.
AMP Trading Group or AMP Trading LTD are both entities which are singled out by the UK regulator. The FCA, the French AMF, the Belgian FSMA and the Cypriot CySEC are all maintaining lists and issuing updated warnings against unregulated companies.
Cold Calls
Clone companies are typically using unsolicited calls to onboard new clients. The FCA has been highlighting for some time that UK residents should be vigilant over cold calls.
A number of call centres typically located in remote eastern European countries outside of the EU are used to onboard clients to unregulated brokers. Countries such as Bosnia and Herzegovina, Serbia, the Ukraine and Georgia are preferred by scam brokers.
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