Clone firms have always been a problem for the Forex industry, but they are now starting to spill over to cryptocurrencies as well. Much like the name itself suggests, a clone firm is the copy of an original and legitimate company.
For example, these clones copy nearly everything about the company, their name, license number, contact number, website design, relatively similar domain name, logos, colors and pretty much everything else.
By providing the traders with these recognizable features, they trick them into thinking they’re the real deal.
Luckily though, nearly every financial regulator has a specific department for these types of events that specialize in finding, recognizing and warning against such companies. In this case, AGM Invest was discovered by the FCA, UK’s financial regulator.
The company is a copy of AMG Financial Services Ltd, which is an insurance company for the UK’s population.
The close, however, claims that it is a trading platform for cryptocurrencies as well as Forex. The firm also mentions a regulatory license in Belize, which is inherently not the best choice in terms of a licensed financial company.
Needless to say, the original company, AMG Financial Services, has denied any and all affiliation with AMG Invest and has supported the FCA in removing them from the platform. It’s extremely important for traders to always keep an eye on where they are logging into.
That is exactly why Binance asks their traders to double check the domain name in order to make sure that it’s the correct one. The next time you encounter colors or logos similar to any crypto company, make sure to check the domain name and find out if it’s an authorized platform.