The official warning states that the FMA suspects the broker of running a scam and warns traders in New Zealand to exercise caution before dealing with them.
We reviewed the intended brokerage firm which operates via the website www.whitleytrading.com but does not disclose much information about itself along with a false fraudulent claim in relation to EU regulation. The broker is trying to present itself as a legitimate forex broker but it is most likely just another typical scam site. We have come across many of these websites reminding our readers that forex brokers operating in Europe must be regulated and licensed by the relevant legitimate European authorities. Furthermore, whitleytrading appears to be anonymous, which is probably a major sign of a problem.
As a general rule, we always recommend traders to avoid doing business with unregulated CFD brokerages because the risk of falling victim to a scam is very high. Interested traders can choose from a wide list of legitimate and properly regulated brokerage firms in the UK, or in Australia, as well as the European Union.