The Forex Fraud team are constantly reacting to feedback from members of the trading community, and we need to share that we have recently seen an uptick in the number of adverse reports relating to Simplexprime.com. Of additional concern is that the website is still up and operating, meaning many could fall into the trap of using a potentially fraudulent broker.
One incoming report was of an investor who deposited $200 with the platform and was hit with a $346 admin fee when trying to claim their profits. This method is a tried and tested approach of fraudsters to drain more cash from unsuspecting traders. It raises a massive red flag!
Fortunately, that message relates to an amount of funds which while not insignificant, is less than it could have been. The simple fact is that it looks like any amount of funds placed with Simplexprime.com could be as good as lost. Trading is hard enough without finding out that you can’t get your money back when you hit a good run.
How to Spot a Scam Broker
There are a lot of tell-tale signs that a broker might not be legit. Taking a line of text from their site, it’s clear they are over-promising. The platform describes itself as “one of the best, most beneficial, brilliantly successful companies in the industry of forex trading and investing.”
Bogus Profiles – one piece of direct feedback from traders to the Forex Fraud team included notes on one of the referenced experts, Mr Nicholas Cary. The unhappy client carried out some research and established the profile wasn’t supported by tracing number or address.
Not Regulated – There is no indication that the platform is regulated. Legit sites must provide information on who they are regulated by, usually detailed on the footer of the website’s home page. It takes a lot of time and money to become regulated, and good brokers will go into more detail because being trustworthy is a significant selling point.
Get Rich Quick – The site is full of suggestions that profits are just around the corner. A large part of the platform is dedicated to ‘reports’ of how much has been returned to investors. All the numbers are positives which raises suspicion as even the best traders in the world have bad days.
Poor Quality Site – the Simplexprime.com site certainly has an amateurish feel to it. There’s little actual information but a lot of big promises and links to third parties. The image below, where the text isn’t even aligned, adds to the feeling the site has been quickly assembled and might have been in operation for very long.
Making money out of trading is hard enough without giving money away to a scam broker. If something looks too good to be true, then, unfortunately, it usually is. This would appear a good time to remember that setting up with a regulated broker, ideally, one 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 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, 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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