Polish Watchdog KNF Warns of CySEC-Regulated Broker Depaho

Poland’s financial regulatory body, the Polish Financial Supervision Authority (KNF), today issued a public warning against Depaho Ltd , a Cyprus-based provider of FX, and CFDs products, stating that the firm is not authorized to provide investment services or activities in the country.

The newest addition to the blacklist operates under the brand FXGM through pl.fxgm.com and claims to be regulated by the Cyprus Securities and Exchange Commission (CySEC).

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Upon investigating the reason behind this warning, it turns that FXGM had renounced its Cypriot license, though the business activities and brand name of FXGM has been purchased by Depaho Ltd, which is already based in Cyprus and is regulated in its own right.

The KNF cautions the public that the aforementioned firm targets Polish customers and since it has no right to do so, the KNF has added this company to its list of unauthorized investment firms.

The public has thus been advised to abstain from any business or transactions with any unregulated providers and to be aware of the increased risk caused by the lack of authorization required to provide financial services in Poland and the European Union.

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Investment services and activities in Poland may only be provided by companies licensed by the Polish Financial Supervision Authority (KNF) under the terms of the Act on Financial Market Supervision.

Bleak metrics about FX traders’ performance

Reports provided to the KNF by the nation’s brokerage houses offering clients the opportunity to invest in the forex market through online platforms revealed that, on average, 79.3 percent of investors showed a net loss from trading.

According to a survey conducted by KNF, the percentage of investors making money from trading in the over-the-counter market averaged 20.7 percent in 2017. But ultimately, 80% of the profitable traders make losses in the long run.

Earlier last year, the Polish police carried ‎out a raid on the Warsaw offices of Amplio Investments, a company that ‎operates call centers for several forex brands, including CFD 1000, VORTEX ‎ASSETS, and MIB 700. Authorities have arrested 20 of the company’s top managers ‎and salespeople‏.‏

Officers from the Police Central Investigation Bureau (CBŚP) accused a total 36 workers of providing ‎investment advice without a license, as well as aggravated fraud, all of ‎which allegedly occurred between 2016 and 2018.

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