Scammer Alert – Trader Feedback Suggests 500investments is a Scam Broker

Justin Freeman

Stock Graphic of Someone Stopping Dominoes

The Forex Fraud team are constantly reacting to feedback from members of the trading community and need to share that we have recently seen an uptick in the number of adverse reports relating to 500investments. One of the most worrying signs for anyone who has money placed with or is that the site is currently not contactable.

Webpage Error for accessing 500Investments

There are many tell-tale signs that a broker might not be legit, and one is that the site is down. Another signpost is the opinions of regulators. To add to the misery of anyone with money at stake, the FCA (Financial Conduct Authority) has released a cautionary note that “500 Investments/ Cabsy Holdings Ltd … may be providing financial services or products in the UK without our authorisation.”

Source: FCA

Direct feedback from members of the trading communities includes this update from a US-based trader who contacted us to say:

“500investments is a scam broker. Their website looks professional, but they scam their clients for their money. They make unauthorised trades on behalf of their clients, then manipulate the trading rates. Then the clients lose their money. This normally happens as soon as the clients ask for a Withdrawal.”

While the Forex Fraud team are working with those contacting the site to gain more colour on the situation, it would seem that 500investments don’t pass the “sniff test”. There are also reports of the “double-dip” where the platform’s support team advise that account holders are required to send more funds to their account to have their initial outlay returned; that is a well-known red flag. Forex Fraud analysts can’t recall any instances of this scenario ending well.

Making money from trading is hard enough without giving it away to a scam broker. If something looks too good to be true, then, unfortunately, it usually is. This is a good time to remember that setting up with a regulated broker, ideally licensed by a tier-1 regulator such as those in the list below, is essential.

  • 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)

If you are looking 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 ‘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, you can 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. You can share your experiences here. If you want to know more about this topic or have been scammed by a fraudulent broker, you can also contact us at [email protected]

Justin Freeman

Latest news

Olympic Legend Usain Bolt Lost $12m in Savings Scam
Usain Bolt loses $12m in an alleged investment scam Jamaican officials and the FBI are investigating investment manager Stocks and Securities Ltd Others are feared caught by the scheme Jamaican Olympic sprinter Usain Bolt has had a $12m savings and investment account he set up for his retirement wiped out. Read more
Phoney Pastors Caught Running $28m Church-Based Ponzi Scheme
Churchgoers targeted by scammers posing as pastors A total of $28m fraudulently taken from largely immigrant community Promises of ‘financial freedom through God’ undone by the fact the project was a massive Ponzi scheme Deception, distraction, and abuse of trust are standard tools of fraudsters. Read more

Safest Forex Brokers 2023

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 73 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Plus500 Logo79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker

    Forex Fraud Certified Brokers

    BlackBull Markets Logo Logo
    IQ Option Logo
    AvaTrade logo
    City Index Logo
    HYCM Logo
    Exness Small Logo
    LegacyFX Small Logo
    IC Markets Logo
    OctaFX Logo
    skilling logo
    XM Logo
    ATFX Logo