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Fiona Maxwell from Risk looked into the forex brokers who have increasingly been seen mis-selling complex derivatives to unsuspecting clients. In the article, she discusses with several leading risk management consultants (including Vedanta Hedging) regarding the state of the industry, who claim that these FX brokers have been attracting customers turned down by the big banks and offering them strategies and incentives that appear to offer the world, but contain clauses involving stinging penalties if currency movements swing unfavourably.
Regarding this article, Vedanta Hedging CEO, Abhishek Sachdev was quoted, saying;
“I have had two clients that were given advice when the brokers weren’t allowed to. One time was quite explicit, where a currency broker was offering the client a simple spot transaction, but out of the blue one day another contact within the broker firm rang up the client and said ‘We can offer you more interesting products that will make you more money’. That constitutes giving advice. There’s nothing wrong with forex derivatives, but they should not be advising clients to do them.”
Recently, these FX brokers have been hitting the headlines again with their toxic deals and Vedanta Hedging has positioned itself again to be one of the leading companies holding these firms to be accountable. We have assisted dozens of UK-based SMEs thus far, helping them to recoup margin payments, restructuring fees and outstanding mark-to-mark currency obligations. Vedanta Hedging also assists SMEs by providing transparency on currency hedging. We do this by helping to negotiate the hidden margins with banks and brokers when buying / selling currency.
For more information on this article, feel free to click here.
