The run into the year-end is often a time for increased price volatility and new trading opportunities, but some bad news comes with that. The Forex Fraud team have seen numerous reports from members of the trading community that rogue broker LiveTrade247 is still operating and taking advantage of unsuspecting traders looking to trade the markets.
Livetrade247 has what at first glance looks like a slick site, which has even had a recent makeover. It also claims to be based in the U.S. These are usually signs of the operation having some credibility, but things begin to unravel when you scratch the surface.
Red Flags at LiveTrade247
Address mismatch – The map of the office address refers to Texas, but the written text claims that the firm is based in Florida. The 1,000-mile distance between the two places points to these guys not even knowing where they are supposed to be pretending to be based.
Binary Options – A reference to binary options is another red flag. Global regulators are clamping down on these instruments, and LiveTrade247’s willingness to promote them goes against the work that the regulators are doing to protect clients.
Poor presentation – Some of the text on the site makes for uncomfortable reading. The phrases “Live Trade247 is the leading Binary Options Broker of Financing” and meet “Our Teamship” suggest someone’s been busy with Google translate.
Unregulated – There continue to be zero references to LiveTrade247 being regulated. Information on licences must be displayed on broker sites, so if it’s not there, then chances are you’re at risk of sending funds to an entity that is entirely unregulated – and that never ends well. Legit brokers, in fact, proudly shout about being regulated in the ‘About Us’ section of their sites, and there is a requirement to display the information at the bottom of the home page.
Tactics Being Used to Scam Traders
Livetrade247 were previously placed on the Forex Fraud list of brokers to avoid after reports of them carrying out one of the most common scam tactics – the ‘double dip’. A new move they are using to extract extra funds from unsuspecting clients is the promise of an account ‘upgrade’.
The ‘upgrade’ isn’t optional but is stated as being required if clients want to get any of their money back. This is a classic case tactic of scam brokers who try to squeeze more money out of their victims.
Getting caught in a scam is, unfortunately, relatively easy and quite common. Scammers are always coming up with more sophisticated ways of defrauding investors out of their hard-earned money. One of the best ways to avoid falling into the trap is to ensure you only ever register with a broker regulated by a Tier-1 regulatory authority. A broker’s site should provide information on its regulatory status and state its registration number at the authority it claims to be licensed by. Cross-referencing that to the regulator’s site will help you establish if the claims are legit. The list of Tier-1 regulatory authorities that legitimate brokers register with includes:
- The Financial Sector Conduct Authority (FSCA)
- The Financial Conduct Authority (FCA)
- The Australian Securities and Investments Commission (ASIC)
- The U.S. Securities and Exchange Commission (SEC)
- The Cyprus Securities and Exchange Commission (CySEC)
To trade with a reputable broker, please visit the Forex Fraud short-list of trusted brokers. Alternatively, the Broker Review section of our site gives a breakdown of the pros and cons of different brokers – but we only carry out reviews on brokers we rate as ‘legit’. If you get the basics right and choose a safe broker, you can then fine-tune your selection by trying out a free Demo account, and by doing that, test the functionality of the site 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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