22 detained in the case of suspicious Forex transactions
22 detained in the case of suspicious Forex transactions
Last week, the press began circulating news about the arrest of 22 people detained in a fraud and money-laundering case involving large-scale fraud and suspicious transactions on the financial market.
These people allegedly deprived hundreds of citizens of the Republic of Moldova, the Russian Federation, and Kazakhstan of money through a consulting company in the field of stock-market trading. Over the last two years, this company, registered in Cyprus but with an office in Chisinau, allegedly collected more than 1.5 million euros from its clients through fraud...
Trade Responsibly!
We are sorry when such fraudulent cases occur in the field in which we operate. This is exactly the phenomenon we try to explain to everyone interested in market activities: Work Only Through Regulated Brokers!
We tried to convey this message every time we had the opportunity (protv.md article , the list of our partner brokers, ...), but unfortunately most people are not inclined to study and understand the difference between regulated brokers and offshore brokers. Yet everything starts here! Wherever you deposit money, you must be able to withdraw it from there...
The REGULATION of a broker is the first thing that must be checked!
To be authorized to operate legally, a brokerage company must be regulated by at least one financial conduct authority (such as CNPF in Moldova) in the country where the broker has its headquarters and/or other branches in other countries.
It is important to know that regulatory authorities:
- have value if they come from economically well and properly developed countries, such as: FCA from the UK, ASIC from Australia, FINMA from Switzerland, BaFIN from Germany...
- have no value and provide no financial safety/protection for investors if these so-called licenses are offered by authorities from offshore regions, usually islands, such as the well-known: BVI from British Virgin Islands, FSA from St. Vincent and the Grenadines, IFSC from Belize ...
Regulations can be obtained by brokers through very complicated procedures over years. Once received, they give the brokerage company high status and give traders confidence that they will receive quality and transparent market services. In that case, all that remains is for you to be able to trade profitably.
Offshore licenses, on the other hand, can be obtained within a few days, without going through the necessary procedures, but for a fee, like “bought exams”. Hence the consequences...
But you should not believe everything you are told. Information can be verified! Each broker's page must state what licenses and regulations it holds.
YOU SHOULD KNOW THAT:
Regulated brokers are not allowed to offer trading or investment signals and do not trade on behalf of clients. They may provide market news and analysis, but they must not intervene directly in clients' decisions.
In market activities, besides the prospects of making a profit, there are also risks of losing money. If your broker insists on telling you only about profits and also uses the word “guaranteed” to convince you to invest, be careful who you are dealing with...
Regulated brokers either do not offer bonuses at all or offer very little. Super offers such as +100%, +200% on deposit or other unusual gifts are suspicious and should be rejected or investigated very carefully.
Regulated brokers are not allowed to receive/release cash money. The basic method by which traders deposit and withdraw money from trading accounts is the use of bank cards/accounts.
With regulated brokers, deposit and withdrawal procedures work automatically, so clients can do this whenever they want. If you try to withdraw an amount of money from your account, but then a broker representative calls you and tries to convince you not to withdraw, for example because there are good market prospects right now and even more profit can be made.., that may be an indicator that you have ended up with an offshore broker.
Regulated brokers charge fees for trading. If some mandatory ones do not exist, then you may have entered a scheme designed to attract uninformed people! Free trading does not exist!
Get informed correctly!
Contact us if you want us to help you understand what type of broker you have.
If you are just starting out or want to make any changes related to your market-services provider, consult the list of our partner brokers.
Translated from the Romanian original with AI assistance.