Is GoCapitalFX Regulated? GoCapitalFX Licensing and Regulation
Go Capital FX Broker Warning! CySEC Warns Against Go Capital FX…
Trading with unregulated brokers is extremely not recommended, specially when the broker is making false claims of being regulated when it is actually not regulated at all. In this case, the broker GoCapitalFX is claiming that it has a Cyprus license when it has no such thing. The Cypriot Financial Authority CySEC has recently let the public know about this in a statement.
The Cyprus Securities and Exchange Commission (CySEC) has posted two warnings on its website this Thursday, one against gocapitalfx.com and the other against www.worldbinaryoption.com. In the first warning against gocapitalfx.com, CySEC states that this website does not belong to an entity that is authorized to provide investment services and/or perform investment activities.
Following the URL, the entity which goes by the name Go Capital FX, claims to be a trading provider and offers a number of assets such as foreign exchange (forex), contracts-for-differences (CFDs) on metals, indices, shares and more as well as futures. The alleged trading provider claims to give its clients access to the MetaTrader 4 platform, where they will have access to a range of instruments and trading opportunities.
On the website, the entity claims that Go Capital FX is the trading name of Lancelot Equity Ltd, which is located in the Commonwealth of Dominica.
“CySEC urges investors to consult its website (www.cysec.gov.cy), before conducting business with investment firms, in order to ascertain the entities which are licensed to provide investment services and/or investment activities,” the warning published states today.
The second website www.worldbinaryoption.com also doesn’t belong to an entity which has the authorization to provide financial services in Cyprus, according to the Cypriot watchdog. According to the website: “World Binary Option is an online Forex and CFD Broker providing traders across the globe with cutting edge technology to trade the world’s markets. Since 2010, our focus has been to change the way people trade forex.
“We are driven to provide traders with incredibly low-cost pricing across all FX, CFDs and Commodities with the security of financial regulation and industry leading customer support.” On its website, the entity claims to be based in the United States and states that it is regulated by the Commodity Futures Trading Commission (CFTC), the International Financial Services Commission (IFSC) in Belize, the Financial Conduct Authority (FCA) in the United Kingdom and by CySEC.
However, the regulator states: “Information in the above mentioned website, which suggests that it belongs to an entity that is regulated by CySEC, is misleading and does not correspond to reality.”
Should You Stay Away From GoCapitalFX?
Yes. Don’t sign up with any unregulated brokerages or firms such as Go Capital FX. If a brokerage says it is regulated by CySEC or any other regulator, you can check on the regulators official website and make sure the broker is not making false claims of being licensed.
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