New Zealand's market watchdog
is warning the public about an Auckland firm which it
understands makes investors pay an up front fee of over
$25,000 to access a foreign exchange trading system.
The Financial Markets Authority (FMA) believes Phoenix Forex,
which has a registered address in central Auckland, is making
untrue claims about the level of returns it offers investors.
"FMA believes ... that Phoenix Forex is misrepresenting the
profitability of, and risks associated with, its trading
system. Investments promising unusually high returns are
often not legitimate offers. FMA urges caution by anyone
considering dealing with Phoenix Forex," the warning said.
Phoenix offers investors access to the OakFX trading
platform, whose website said the company is "dedicated to the
passive and semi-passive lifestyle income generation of its
"Phoenix Forex is ideally placed for growth, working with an
aging population that seek an opportunity to make money
working from their home computers," OakFX's website said.
The FMA said it understood Phoenix Forex required investors
to pay an up-front free of $25,700 to access the trading
"Phoenix Forex has previously advertised returns of between
50% to 65% per annum, and continues to promote the trading
system as providing high returns. In FMA's experience, it is
highly unlikely that this kind of investment can deliver such
"Phoenix Forex has not been able to provide any evidence to
support its claims of having achieved these returns. Further,
investments of this nature carry a high risk of loss of some
or all of an investor's capital, and losses can exceed the
amount of the original investment," the FMA warning said.
The Herald called Phoenix Forex's offices for comment but
were told its director - listed on the Companies Office as
Kendall Twigden - was out of the country.
- By Hamish Fletcher of
the NZ Herald