The Forex Fraud team always reacts to feedback from members of the trading community so we need to share that we have recently seen an uptick in the number of negative reports relating to LiveTrade247. The broker has a slick site, including images of the management team who rather suspiciously all look like they play quarterback. The fact that the officers of the firm are called “Their Teamship” is an ‘interesting’ turn of phrase, but there are other tell-tale signs they might not be legit.
We can’t find any reference to LiveTrade247 being regulated, so that alone would mark it out as an operation to avoid. Another reason they will be going onto the Forex Fraud list of brokers to avoid is reports of them carrying out one of the most common scam tactics – the ‘double dip’.
The double-dip involves scam brokers encouraging account holders to pay more funds to them to receive cash back. In one instance we’ve been made aware of, LiveTrade247 asked for $500 to be paid to them so that a trading profit of $120 can be ‘released’. That, of course, rang alarm bells with the party involved, who explained the payment request was being dressed up in technical language. The $500 payment being referred to as an “Operation Currency Converter” fee. No, we’re not sure what that is either. The user has wisely decided to cut their losses and not transfer any more funds.
Getting caught in a scam is unfortunately relatively easy and quite common. Scammers are always coming up with more sophisticated ways of swindling investors out of their hard-earned money. One of the key ways to avoid falling into the trap is to ensure you only ever register with a broker who is regulated by a Tier-1 regulatory authority. A broker’s site should provide information about its regulatory status and also publish the registration number issued by the authority it claims to be licensed by. Cross-referencing that to the regulator’s website will help you establish if the claims are legitimate. The list of Tier-1 regulatory authorities which legitimate brokers register with includes:
- 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 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. 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 individuals 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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