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FSMA Exposes 5 New Scam Brokers

FSMA Exposes 5 New Scam Brokers

The Financial Services and Markets Authority (FSMA) based in Belgium has published a list of five brokers which it suspects to be scams, warning investors worldwide. The regulatory agency claims there have been several complaints filed from Belgian residents against these brokers, so all South African traders should read the list carefully and make sure to not invest any money with these companies.

If you have already invested money in a scam broker or have complaints against a broker which you suspect to be a scam, read our forex and binary options broker complaints which will give you a step-to-step guide on what you can do to fight back.

Always make sure to invest in trustworthy, regulated companies. Check out our list of the best forex and CFD brokers for South African investors and make a smart choice when it comes to your trading.

The official list published by FSMA of the five brokers South African traders should stay away from can be found below.

  1. 365 Markets (Trustnet Ltd)
  2. CFDs100 (Trystem Limited)
  3. HybridReserve (Singlebell LTD / SingleBell OU)
  4. FXG Trade (Capital FXG Ltd / Nordic Pearl Ltd)
  5. PBN Capital (Capital Tech Ltd /Pbox Ltd)

FSMA reminds traders that all companies offering investment products must always hold an authorization, which none of the above brokers have complied to. In other words, 365 Markets, CFDs100, HybridReserve, FXG Trade and PBN Capital have been offering their services unlawfully to investors.

How can South African traders avoid such companies? It is a known fact that scams in the industry have grown increasingly common, so how can you tell a broker might be a scam? We cannot always wait for FSMA or similar regulatory agencies to publish official lists of these brokers to know who to stay away from.

Luckily for you, our team has provided a detailed list of three warnings signs below, so you won’t need to wait for FSMA to publish a new list each time.

Make sure to read these carefully. Please note that the following signs are not to be seen individually, but as a group. If a CFD or binary options broker shows all three signs, then that broker is most likely to be a scam.  

3 Warning Signs That a Broker is Likely to Be a Scam

1: Not regulated

The first sign is nothing new, but is becoming increasingly important. Always make sure to check whether a broker is regulated or licensed under the appropriate regulatory agency. For Belgium, this is FSMA, but for South African traders, this is the Financial Sector Conduct Authority (FSCA), previously known as the Financial Services Board (FSB).

How can you tell a broker is regulated? Well, if a broker is licensed and regulated, this will always be stated on their official website clearly. You can check their license number with the regulatory agency to confirm. This will usually be linked under the registration tab on their website.

Please note that if a broker is not regulated, this does not automatically mean this broker is out to scam you. Always check for other signs as well.

2: Lack of transparency

The next sign that a broker might be a scam is an incredibly vague website. South African traders should always look out for all the necessary information on a broker’s website, which includes trading conditions, company information, clear terms and conditions and deposits required.

If none of this information is available, this is an immediate sign that something is not right.

3: Get-rich-quick statements

One of the easiest ways to see a forex or binary options broker is scamming its customers, is get-rich-quick promises. Many online companies sell the concept of “automatic money-making machines” that generate huge sums of money every day with no effort whatsoever. Now, while this may sound ideal, it is also completely false and impossible.

There are no such machines out there and if a broker is claiming to magically make you money, that broker is lying. It is always important to remember that all online trading comes with some degree of risk and no one can predict results, let alone hundreds or even thousands of dollars in merely 24 hours – as some brokers state.

South African traders should take all the above into consideration and always be careful before investing their money.

To make your life easier, we have all the lists you will need below.

Best Forex and CFD Brokers for South African Traders

Best Automated Trading Robots for South African Traders

BinaryBook Scam is Under Trial