Phoenix Forex requires investors to pay a substantial up-front fee of up to $25,700 to subscribe for the system.

New Zealand’s financial regulator FMA has issued a warning against currency account manager Phoenix Forex Limited of Auckland, and the OakFX foreign exchange trading system, for which Phoenix is the exclusive distributor.

According to the FMA, Phoenix Forex has advertised returns of between 50%-65% per annum, but has not been able to provide any evidence to support its claims of having achieved these returns. The FMa believes that it is highly unlikely that this kind of investment can deliver such high returns.

The FMA also points out that Phoenix Forex is not registered as a financial service provider, and has not been authorised or licensed by the FMA for any service — which it needs to be in order to offer these kinds of services.

The FMA’s full statement can be seen here.

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