Online trading

On the internet, be wary of shady trading platforms! Providers entice customers by offering lucrative investment opportunities and price speculation. If they win, however, they either delay payment or do not respond at all. How to keep yourself safe.

online trading guide

In a nutshell, here are the essentials:

Untrustworthy online trading platforms entice users to the web with lucrative investment transactions and price speculation.
Many investors only complain about losses after initial successes. When it comes to winnings, the providers either delay or refuse payment, or they simply do not respond at all.
On many websites, the imprint and an EU license are missing.
We offer advice on how to spot shady trading offers on the internet.

Providers of alleged

Contracts for difference (CFDs), foreign exchange markets (forex trading), and cryptocurrencies all entice users to the internet with lucrative investment opportunities and large profits.

Many investors, however, only record losses after initial success – profit payments are refused or providers react more aggressively.

You can learn more about cryptocurrencies like Bitcoin, Ethereum, and others, as well as 6 signs to look out for when dealing with shady cryptocurrency providers, here: Bitcoin and other cryptocurrencies: shady transactions

What exactly are Contracts for Difference (CFDs)?

Investors speculate on the price development of a specific underlying with Contracts for Difference (CFD) (e.g. a share or cryptocurrency). CFDs are extremely speculative and come with a high risk of losing money.

What is a foreign exchange market?

Investors rely on changes in exchange rates in foreign exchange trading (forex trading for short). Trading depots can be created on a variety of platforms.

Old scam with new products

The strategies used by trading platforms to entice investors are frequently similar: A small amount of money, usually around 250 euros or dollars, is required to get started. Investors claim that they initially profited, and that a “personal broker” persuaded them to increase their profits by making larger deposits.

The problems begin as soon as a larger sum is deposited into the online trading platform’s account. Credit payments are delayed, and ‘personal brokers’ are frequently unavailable. Alternatively, they use phone calls to harass investors who want to stop trading.

Feigned seriousness

The providers feign seriousness with elaborate websites that tell personal success stories, prominent names, or the use of logos from well-known media. On the other hand, most websites do not have an imprint. Consumers have little chance of getting their money back because many of these platforms are registered overseas.

Know how to spot shady online trading platforms

Pay attention to the following points to avoid falling for shady online trading:

Forex Brokers License
The South African Brokers site company database can tell you if a provider is licensed in South Africa and other countries.
Look for an imprint on the online trading platform. If it does not, you should not put any money into it.
Contact details
The address, an authorized representative, and an e-mail address must all be included in the imprint. A reference to the commercial register with the corresponding number should also be included. More information about Internet providers’ information obligations can be found here.
Calls from other countries
You are usually required to provide a phone number when registering on dubious CFD trading platforms. You are then promptly contacted by an alleged broker, who frequently uses an international phone number that cannot be returned.

Anyone who has been the victim of a scam should report it to the local police station or prosecutor’s office.