South African FSCA Puts Warning Out Against Trading On Mirror Trading International
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The South African financial services conduct authority (FSCA) is looking into trading activities from Mirror Trading International (MTI). This all comes just one month after the Texas State securities board took action against the company under similar means.
According to information that MTI shared with the South African authorities, the company works with high-frequency derivatives trading using bots on behalf of his client base.
Interestingly, the authority said that the current business model of MTI requires it to own a financial services provider license but at the time of writing, they don’t seem to have one.
The big issue with the company is that it was promising its clients returns as much as 10% on a monthly basis but according to the authority, this was very unrealistic and very over-exaggerated.
One thing is highlighted that the company claims to have around $170 million locked away in clients funds in trading accounts. The big issue for the FSCA is that they were worried that these funds didn’t actually exist.
Either way, authority in South Africa has warned the public on using this company’s services. Due to not having a mandatory license to operate, it has advised its current client to request immediate refunds and look elsewhere for their trading needs.