Another instance of an unregulated forex broker using the trade name of a regulated entity.

Cyprus financial regulator CySEC has sent out a release warning investors against Depaho FX, and their website www.depahofx.com, stating that they are not and have never been licensed by CySEC.

On Depaho’s website the company claims to be based in Nicosia. If they are indeed based there, and are not regulated by CySEC, we don’t understand why Cyprus authorities don’t shut Depaho down right away.

Digging a little deeper, there is indeed a Depaho Ltd. which is regulated by CySEC, and which holds a CySEC CIF license. However that is just the name of the regulated holding company — the operating name and website for the regulated Depaho Ltd. is GTCM, at www.gtcm.com.

Given the uniqueness of the name Depaho, and the fact that the warned-against website was set up just late last year, we can only assume that the DepahoFX folks decided to try and piggyback off of GTCM’s license.

This is not the first time we’ve reported on something like this. Back in August, CySEC issued a warning against CF Invest Ltd., and their website www.cfinvestltd.com. CySEC noted in its warning that there is indeed a properly licensed and operating forex broker with a very similar name and website, called CFI Markets.

To see the complete CySEC press release click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.