UFX broker, (or UFX Markets), was founded in 2007 and was soon after registered with the CySEC. They give their clients access to a trading platform, allowing them to trade various stocks and commodities. Among the investments, they offer CFDs.
The company gives clients access to the MT4 trading platform or their proprietary ParagonEx Web Trader platform. They also provide users with analysis and advice via a system they’ve developed called MassInsights.
Their trading platform was well-received, but it soon became apparent that UFX might not have been acting in its clients’ best interest.
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UFX Has a History of Noncompliance with Regulations
Broker closed its official UK presence in November of 2017. UK citizens could still access their platforms, although, on June 4th, 2020, the FCA regulator removed permission for UFX to offer services to UK citizens. UFX is the operating name for Reliantco Investments Limited.
CySEC has determined that some of this firm’s operations have not met their standards and have issued several fines. There was a settlement in 2013 for a total of €100,000.
CySEC has stated that the reasons for the punitive action include failing to act fairly, honestly, and professionally, failure to provide accurate and clear advertising materials, and failure to complete customer suitability checks.
UFX scam claims that these fines were related to holdover issues from the past that they already addressed.
These issues parallel those of XTrade broker – a similar CySEC registered broker.XTrade recently settled with CySEC to pay €200,000 in fines.
This was on top of previous €225,000 fine from CySEC for reasons similar to those against UFX, failure to act in accordance with the best interests of their clients.
CFDs and Forex Are Tricky Investments
Forex and CFD are the primary investments that UFX offers its clients. The company markets them as a quick way to make a lot of money.
Many brokers do not disclose to their clients how risky these investments are, pushing them through to generate the higher trade volumes. The minimum deposit to open an account with UFX is €100, but many features are locked behind higher account tiers.
They also offer a very high leverage of 1:400, something that could lead to new investors losing more than they expected.
Carefully Consider UFX’s History Before Investing
The services offered by UFX aren’t all that different from those provided by other brokers. The firm is a registered broker, but there are a few signs that warrant taking a closer look before investing.
Their fines from CySEC are disconcerting, and one should be cautious of forex and CFD brokers in general. If you’ve lost money on your investments with UFX, it might be possible to recover some or all of your funds.
We’re here to help you navigate the legal hurdles of dealing with forex and CFD brokers.