The FCA Cracks Down On EverFX’s UK Operations
The UK’s financial regulator has taken action against ICC Intercertus Capital Ltd, also known as EverFX. The FCA has banned the broker from offering CFDs to traders from the United Kingdom. This follows a series of serious compliance violations.
EverFX is registered in Cyprus but was operating in the UK by passporting its license and utilising the FCA’s Temporary Permission Regime (TPR) following Brexit.
The financial watchdog alleged that EverFX has been onboarding British traders via overseas entities, which are not licensed to offer trading services in the United Kingdom. The FCA added, “Many consumers were subsequently induced to transact with overseas members of the EverFX Group, which had no authorization to provide regulated services in the UK meaning that consumers lacked the same level of protection.”
The FCA also pointed to a number of misleading financial promotions that did not adequately highlight the risks of trading contracts for difference. Additionally, the broker has been accused of pressuring users to make further investments and restricting client withdrawals. “This has led to some consumers losing very significant sums of money,” the regulatory announcement highlighted.
Following the concerns, the FCA has ordered EverFX to stop offering CFD trading services and marketing in the UK. They have also instructed the broker to close all open positions and return trader funds.
EverFX is headquartered in Cyprus and a partner of the CashFX group. The broker previously attracted clients with its MT4 and MT5 platforms, alongside leverage rates up to 1:500. Rebate promotions and reward points have also allowed traders to pick up gifts, from smartphones and watches to gold.
But whilst EverFX may appear to offer a competitive trading service with attractive incentives, we strongly recommend against opening a live account. The FCA’s latest regulatory notice comes after a string of concerns and complaints in recent years.
See our list of top-rated brokers to find a suitable alternative.