ET Finance is a brand name also used by the investment firm Magnum FX (Cyprus) Ltd, established in 2016. They offer trades on a variety of assets, forex, stocks, cryptocurrencies, and CFDs. RecentlyCySEChas temporarily suspended their activities in the UK for using falsified celebrity endorsements to promote investments.
How Does ET Finance Operate?
ET Finance engages in several practices that merit taking a closer look at the firm before investing. They have tiers of accounts that require higher deposits to unlock more features. Many of their clients have had trouble processing withdrawals, showing that large deposits with this firm could be a bad idea. They offer leverages far beyond the 1:30 maximum mandated by regulating bodies, up to 1:500 for clients with the highest tier account. Their risk disclaimer states that 81% of their investor accounts lose money when trading CFDs. This company also used fake celebrity endorsements on social media to lure unsuspecting investors into high-pressure and high-risk investments.
Regulatory Actions Against ET Finance
ET Finance is one of four brokers that the FCA blacklisted in early June 2020. This was the first case of the FCA blocking the passporting rights of firms registered with a foreign regulatory body. The announcement from the FCA stated that ET Finance must not conduct any regulated activities with any client from the UK. Also, they must not conduct any marketing to anyone within the UK. By June 4th,2020, they must liquidate any trading positions held by UK residents.
CySEC itself took action, also issuing a partial suspension of their Cyprus Investment Firm License on June 1st, 2020. The suspension is a punitive action against ET Finance’s use of fake celebrity endorsements in the UK. The month-long suspension prohibits the firm from providing services to new clients and from advertising investment services. CySEC stated that ET Finance and the other firms did not appear to act honestly, fairly, and professionally when providing investment services to clients.
This first wave of crackdowns continued days later on June 4th, when more Cypriot firms received a suspension from operating within the UK. EuropeFX is one of those firms. They have been cited as operating the same type of false celebrity endorsement campaign as ET Finance.
You Have Options That Could Recover Your Lost Funds
While ET Finance is a regulated broker, it has attracted the attention of multiple regulating bodies. If you’ve lost money investing in assets you do not fully understand, you could have legal standing to recover your funds. Contact us with your details today to see how we can help.