A clone firm is a scam that borrows a real, licensed broker's name, licence number and sometimes its entire website design, then uses that borrowed credibility to take deposits it never returns. The broker being copied usually has nothing to do with it — the licence is real, the company using it is not. Regulators publish warnings about clones constantly, which tells you how common the trick is, not how rare.
How the scam actually works
A cloning operation starts with a genuine, currently-authorised firm — often one that already appears in searches and has a clean regulatory history, because that's what makes the fraud convincing. The scammer then does one or more of the following:
- Reuses the real licence number on a lookalike website, so a quick glance at "our regulator" claims seems to check out.
- Registers a near-identical domain — an extra word, a different suffix, a hyphen — designed to be mistaken for the genuine broker's site.
- Cold-calls or messages victims, often claiming to represent the real firm's "account management" or "recovery" team.
- Copies branding, logos and even staff photos from the genuine company's marketing material.
None of this requires hacking the real broker. The clone operates entirely separately, banking on the fact that most people verify a broker by searching its name and licence number rather than by checking which company actually holds those credentials.
Real examples regulators have flagged
This isn't theoretical. The UK's FCA has published clone warnings naming specific impersonations of firms that appear in our broker database: a clone using the "FX Time" name targeted people searching for the real Exinity UK Ltd (trading as FXTM), and a fake "Eightcap VIP" operation impersonated the genuine, FCA-authorised Eightcap Group Ltd. In both cases the regulator's own warning page states the real firm's name and licence number so the public can tell them apart. That is exactly the kind of official confirmation you should be looking for — not a badge on the broker's own homepage.
Why clones specifically target regulated brokers
It might seem odd that scammers copy a firm that's already regulated rather than inventing one from scratch. But that's the point: an unregulated, made-up broker name has no track record to borrow. A well-known regulated firm already has search-engine trust, real client reviews and a licence number that resolves to something real if anyone checks. The clone free-rides on all of it, and most victims never make the one check that would expose it — going to the regulator's register directly rather than clicking a link the caller or website sends them.
The checks that catch a clone
A few habits close most of the gap:
- Never follow a link sent to you. Type the regulator's domain yourself, or search for it — clone operators frequently build fake "verification" pages that just confirm whatever number you enter.
- Match the company name exactly, not just the brand. "BrandX Ltd" and "BrandX Global Ltd" are not automatically the same entity, and a near-identical name is itself a warning sign.
- Check the regulator's clone and warning list specifically, not just its main firm register. The FCA, ASIC and others maintain a separate list of firms impersonating genuine licence holders.
- Be suspicious of any unsolicited contact — a cold call, a message from someone claiming to be your "account manager," or an approach through social media — especially if it pushes urgency or a "final chance" deposit.
- Cross-check the domain, not just the name. Genuine firms rarely change domains; a slightly altered spelling routed through paid search ads is a classic clone pattern.
We walk through the full five-minute register check in how to verify a broker's licence yourself, and our regulation guide explains which official registers to use per country.
What to do if you suspect a clone
Stop before depositing or sending any further funds. Search the regulator's own warning list for the firm and domain you were given. If nothing matches the genuine firm's details, report it to the regulator — most have a dedicated scam-reporting form — and to your bank if money has already moved. If you're unsure whether an entity you're dealing with matches a genuine broker's real structure, our entity decoder maps brands to their verified legal entities by country, which can help you spot a mismatch quickly. You can also look up a specific broker's own scan page, such as Pepperstone or PU Prime, to see the entities and licence numbers we've verified directly against the register.
A genuine licence number proves the real firm exists — it does not prove the company contacting you is that firm. This article is educational research, not financial or legal advice; always verify independently on the regulator's official register before sending money.