Markets have rallied hard after shaking off a bout of Omicron fears. Soon after the European markets opened on Tuesday, the Nasdaq 100 was up by 1.69%, and the German Dax by 1.77%. With signs that the ‘Santa Rally’ might be coming into play, traders have plenty of opportunities. But despite the evident excitement, there is still a need to prioritise safety when entering the markets. Scam operators are a significant concern, and several traders have now contacted the Forex Fraud team about a suspect organisation, LiveTrade247.
Tell-tale Signs of a Scam Broker
The broker LiveTrade247 has been pointed out by members of the trading community before. The broker has a slick site, claims to have a US office, and looks legit, at least at face value, like all good scammers. Some of the language used shows that things might not be what they appear. The management team is described as “Our Teamship”, but more importantly, there is no sign that the broker is regulated.
Still No Sign of Regulatory Licenses on the LiveTrade 247 Site
LiveTrade247 cements its place on the Forex Fraud list of brokers to avoid, thanks to there being zero sign of it being regulated. That means they might have the mechanics in place to put on trades, but there are no controls on what they can do with money deposited with them.
How to Find a Regulated Broker?
Regulated brokers, in contrast, will often willingly share details of the regulatory authority by which they are licensed. The process of obtaining and maintaining a licence with a Tier-1 or even a Tier-2 regulator is costly, but it is seen as a selling point by good brokers.
- The Financial Conduct Authority (FCA)
- The Australian Securities and Investments Commission (ASIC)
- The U.S. Securities and Exchange Commission (SEC)
- Cyprus Securities and Exchange Commission (CySEC)
- Securities and Exchange Board of India (SEBI)
- The Financial Services Conduct Authority of South Africa (FSCA)
Cross-referencing that to the regulator’s site is a worthwhile double check and will help you establish if the claims are legit.
Typical Scams to Avoid
Some traders have fallen victim to the ‘double dip’ scam. This comes about when account holders appear to profit from their trades, and the scammer explains more funds need to be paid to release the gains. It never ends well.
As concerning are reports this week of accounts at third parties being hacked. A South African trader contacted us to say:
“I was hacked on Saturday by some people called live trade 247 but the link was from another paying agent. I was about to withdraw my profits ?. They took my money in my bank account they took everything from me.”
“They took everything that I have worked for now don’t have anything now, they took my profits too.”
Getting caught in a scam is unfortunately relatively easy and surprisingly common. Scammers are always coming up with new ways of defrauding investors. If you are looking for a reputable broker, then the Forex Fraud shortlist of trusted brokers is an excellent place to start. Alternatively, the Broker Review section of the Forex Fraud site gives a breakdown of the pros and cons of several we have shortlisted.
At Forex Fraud, we only carry out reviews on legitimate brokers. If you get the basics right and choose a safe broker, you can find your best fit by trying a free Demo account and testing the site’s functionality hands-on.
Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers and you can share your experiences here. If you want to know more about this particular topic, or have been scammed by a fraudulent broker, you can also contact us at [email protected]
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