Playing the stock market is potentially one of the most profitable activities on the Internet. From all sides it is heard that it is worth entrusting your money to professionals - and your profit will vary from 5% (in the worst case) to 100% (in the best). All you need to bring money to brokers - and a new car, a fur coat to his wife and a cottage mother in law in your pocket!
However, plunging into the stormy commercial waters, it is worth remembering that it is easy to drown there. Until 2016, the brokerage market in Russia was a variation on the theme of the Wild West during the gold rush. An insignificant small number of people managed to get valuable metal, and sometimes it seemed that not people earned there through organizations, but organizations on trusting investors.
After federal legislation patched especially large holes through which fraudsters replenished their pockets, the situation stabilized a little. But not to the end.
How pseudo brokers cheat customers
To this day, there are many dubious companies operating on the same brokerage market in Russia. They lure gullible people with promises to increase their capital by trading on the Forex exchange, promising to increase their fortune several times.
- Most often, the object of trade are the exchange rates.
- And then the deception scheme begins to operate: although the client is regularly informed that operations are being carried out, the amount of money in the account is increasing, but for the best result you need to make a small amount. And further. And further.
- And when a clear-sighted client decides what is enough with him, and tries to take his money, the account is reset to zero, and the company puts the citizen in total ignore.
It helps fraudsters and the fact that people, as a rule, are poorly versed in legal documents, especially in matters of regulation of the securities market.
In fact, it turned out that the client of such an organization does not conclude any transactions and does not buy any securities, but only makes bets on raising or lowering the exchange rate. And not at the Forex exchange itself, but inside the dealer’s closed mini-exchange.
Blacklist of fraudulent companies in the Russian securities market 2019
In early October, the Federal Financial Monitoring Service presented a list of twelve pseudo-broker companies that tricked customers. it
- 10 brokers
- Barclays trade
- Born to trade
- Delloy trade
- Global fx
- Go capital fx
- Grandcapital
- Kappabrokers
- Kbcapitals
- Swiss trade
- Teletrade
- Wercrypto
The main features of a pseudo-brokerage company
How not to fall for the bait of scammers, such as Rosfinmonitoring’s brokerage anti-rating? Please note that all of these companies have a number of common features.
- None of the above organizations are registered in the Russian Federation - they are all offshore.
- None are licensed by the Central Bank. But according to federal law, this license is a necessary condition for legal activity as a forex dealer.
- None of them are members of the professional union of brokers (the so-called self-regulatory organization). At the moment, there is exactly one such self-regulatory organization, which consists of dealer companies - this is the "Association of Forex Dealers." Moreover, the number of dealers in this SRO is very small - only 4 pieces, and all of them are subsidiaries of large banks. Until December last year, another 5 independent brokers (Forex Club, Teletrade, Alpari, TrustForex and Fix Trade) were members of the SRO, but the Central Bank asked them to “exit” due to regularly recurring violations. That is, in fact, it turns out that for the entire Russian Federation the number of legal, legal Forex dealers can be counted on the fingers of one hand.
- Companies have a short tenure in the market. In fact, an organization can take money from the population much longer, however, in attempts to cover their tracks and nullify their reputation, they often change their names.
- Not all gold is what the word "gold" is written on. For example, Barclays Trade. Barclays is a world-famous concern, one of the largest players in the financial market. However, our Russian homegrown version of Barclays Trade has nothing to do with the original. Fraudsters only “borrowed” the name in an attempt to give themselves solidity.
- The company has negative reviews in Runet. Yes, the World Wide Web remembers everything, and you can find a lot of interesting things in specialized forums if you search.
Signs of a law abiding broker
The features of a broker who with a high degree of probability will not throw his client are directly opposite to the above.
- This organization has a registered office in major cities of Russia, most often in Moscow or St. Petersburg.
- She has a number of experts on the staff, each of which has a high citation index in the media and is published in professional publications. And it does this not a month, not two, or even six months, but from two or three years.
- The top of the company are public people with a good reputation. And customer reviews only confirm this.
- And this company is one of four members of the self-regulatory union of brokers. These are Alfa-Forex, VTB Forex, PSB Forex and Finam Forex.
One of the effective ways to catch a money fish in the waters of Forex is to familiarize yourself with the basic principles of PAMM investing and invest exactly as much as it is not a pity to lose.
And, the most important tip: Before you bring someone your money, do not be too lazy to study the laws governing this type of market or activity. If reading such documents is difficult for you, you can hire a specialist who for a certain amount will translate them from the legal language into the everyday language. This will help you save your money in the future.
