A foreign exchange trading system is no longer being sold in New Zealand after regulators warned the public away from it and its distributor, Phoenix Forex.
Budding currency traders were being asked to stump up an up-front fee of up to $25,700 to subscribe to the OakFX software system.
The OakFX algorithmic trading software was being distributed exclusively in New Zealand by Auckland-based Phoenix Forex, which had previously advertised returns for users of between 50 to 65 per cent.
But the Financial Markets Authority (FMA) last week urged those dealing with the firm to be cautious.
"The FMA believes that Phoenix Forex's claims about the level of returns made by its trading system are untrue, and that Phoenix Forex is misrepresenting the profitability of, and risks associated with, its trading system," the FMA said in its warning.