Home » CySEC , Fraud , Option500 , SFC , UK FCA , Unlicensed Forex Broker » Fraud Accusations Mount Against FX Broker Option500 as Hong Kong SFC Issues Warning
The Hong Kong SFC has levied penalties against multiple Forex brokers this year and the agency has warned against several unlicensed FX firm this month, which have names resembling reputable brokers like Plus500.
For instance, last week, the SFC sent out a warning against Option500 (www.option500.com), which has been soliciting investors in Hong Kong and overseas. The unlicensed company claims to be based in the United Kingdom and has a very similar-sounding name to British FX broker Plus500 - a regulated entity and a recognizable brand name in the industry.
SFC's warning reads:
The financial regulator in Cyprus, the CySEC, also warned about Option500 in October of last year, saying the company “is not permitted to provide investment and ancillary services in the Republic, pursuant to Investment Services and Activities and Regulated Markets Law.”
Several former clients have also accused Option500 of fraud and complaints have been lodged with the UK Financial Conduct Authority (FCA), according to a forum thread on ForexPeaceArmy.
One former client alleges that Carl Ericcson and Alan Jones, compliance manager at Option500, scammed him to the tune of $18,700 via document forgery and unauthorized trading.