Scam exists in any financial markets and the forex market is no exception. Even in 2022, sleazy forex brokers continue to deceive traders. How could investors know fraudulent brokers？ Besides checking the blacklists of forex brokers on global regulators' website, we can also find from investors, who shared their scammed trading experiences when dealing with some fraud brokers.
Recently, BrokersView learned that many investors has been trapped by a scam conducted by the forex broker FinoMarkets and lost a lot of money.
Unable to Withdraw
Ian dougall, an investor from CA, posted that FinoMarkets is a total scam. He opened an account in the company and everything worked well before another manager replaced his first account manager and contacted with him. The new manager told him to invest a few thousand more dollars in order to trade with a bot system. He was insulted by the new manager through phone calls. He didnt want to deposit extra money as the new manager told. He asked to close his account and wanted to get his money back. To his surprise, his withdrawal requests was denied and he had nothing back. Finally, he got sucked into opening account with $250.
Warned by Three Financial Regulators
From the information we hold, we found that FinoMarkets was warned by three financial regulators before.
The first warning comes with the Spanish regulator CNMV. According to the release, CNMV warns that FinoMarkets is not authorised to carry out investment services and activities in Spain as a result of lacking necessary authorization.
The second is from British regulator FCA. On 4 October 2021, the watchdog added the company to its alert list, saying that this firm is not authorised by it and is targeting people in the UK.
The last one is reported by FSMA in Belgium. The regulator strongly advises against responding to any offers of financial services made by the entity. The financial supervisor claims that the scammer acts very aggressively. The fraudster also try to convince the victims to invest increasingly higher amounts of money by conducting its investment fraud.
These proofs make it clear: FinoMarkets is actually not regulated or registered by any financial regulators. That means investors' funds in the broker is unsafe and cannot be protected by any laws. Therefore, it is a scam.
As regulation is the most important factor for the safety of any investment, BrokersView strongly advice potential traders to invest only with properly licensed brokers.
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