Warning: Scam Brokers tricking South Africans out of their investments
A recent report by FraudBrokers.net has shown a worldwide increase in Scam Investment Brokers. Investors are caught out by opening accounts and paying into fake investment sites, often losing hundreds of thousands of dollars.
Unfortunately, South African investors are not spared either. Fake investment sites are becoming more prevalent and more sophisticated all the time. These unscrupulous persons set up a website that is copied or looks very near to legitimate brokerage firms, even with live stock-price tracking, and investors are tricked into opening accounts and depositing money.
Any trades done within the website are completely fake. When the investors try to cash out, they are usually met with a barrage of obstacles and problems, until one day the website completely disappears with all their money.
Jack Edwards, the Marketing Director of the South African arm of CAPEX.com explains that investors need to do their homework on the platform before they open an account. Often, the quickest way to do this is to do a google search on “platform name + scam” which may present you with specific reviews or warnings if the website is a scam.
Edwards included a comprehensive list for the investor to work through to make sure an investor platform or broker is legitimate, which includes:
Before opening an account
- The Broker or Investment Platform is not registered with the FSCA in South Africa. A quick search of their license number on the FSCA site can tell you if they’re legitimate or not.
- The Broker or Investment Platform has received warnings from known regulating authorities like the British Financial Conduct Authority, the American SEC, ASIC, CySec, or the South African FSCA, etc.
- The Broker or Investment Platform’s website is a clone of anther legitimate broker’s website. They copy content and design exactly.
- The Broker or Investment Platform is not regulated by any known and established authorized regulating authority.
You didn’t check and opened an account
- The Broker or Investment Platform forces you to make deposits again and again.
- When you want to withdraw your money, the Broker or Investment Platform does not allow you to do so.
- The broker or Investment Platform suddenly closes its website, and their phones stop working.
- Your account was frozen all of a sudden.
South Africa has an extremely robust and world-class regulatory framework. Still, it’s also the responsibility of the investor to ensure they’re placing their hard-earned cash in a properly registered and regulated environment.
CAPEX.com has been at the forefront of global expansion over the last few years, now covering areas in Europe, the Middle East and in South Africa in 2021. It’s fully licensed with the Financial Services Conduct Authority in South Africa.
As a CFD (contracts for difference) trading platform CAPEX.com is able to provide investors with certainty that they are working with a legitimate brokerage and investment platform.
CAPEX.com has also released its very exciting ThematiX product which bundles investment options together to allow the investor to trade within a fixed “theme”, for example, “fourth industrial revolution stocks” or “green energy stocks”.
Edwards concludes, “There is an incredible opportunity for South Africans to learn how to responsibly invest on our platform. We’ve not only built an incredibly robust and secure environment, but we’ve also added a step-by-step Investor Academy that helps the first-time trader through the initial steps of getting started. With CAPEX.com you’re working with a financial institution with a secure international track record.
CAPEX.com is a leading global trading platform providing its users with expert insights, tools, and resources to make markets accessible to a worldwide audience and offering a tailor-made trading experience. Its professional trading platforms, robust technological infrastructure, and transparent trading conditions have propelled it as one of the most respectable brokers on the international stage.
Anchored by a global presence and regional expertise, CAPEX.com holds operating licenses from Cyprus Securities and Exchange Commission, Abu Dhabi Global Market Financial Services Regulatory Authority, the Financial Services Authority (FSA) in Seychelles, and the Financial Sector Conduct Authority in South Africa. For more information on secure CFD trading as well as their popular Training Academy, visit https://za.capex.com
Risk Warning: Contracts for Difference (‘CFDs’) are leveraged products, incur a high level of risk and can result in the loss of all of your invested capital. As a result, CFDs may not be suitable for all individuals. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation or particular financial needs before making a commitment to invest.
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