Category: News

Rise in ChatGPT Trading Scams: Beware of Fraudulent Trading Strategies

Posted on by Adam Smith
ChatGPT Trading Scams

In recent days, an alarming trend has emerged in the online trading community, as unsuspecting individuals are falling victim to ChatGPT trading scams. These scams exploit the popularity of AI-powered chatbots and promise foolproof trading strategies, luring in novice investors with the promise of easy profits. However, these fraudulent schemes have left many individuals in financial ruin and underscore the importance of remaining vigilant in the digital age.

ChatGPT is next-gen AI software that imitates a human-like conversation between artificial intelligence and users presented in a text-based format. It can answer questions, fulfill requests, and generate increasingly sophisticated responses. It can even create silly poems and original songs, showcasing its growing abilities. Check more about full capabilities of ChatGPT website.

  • Unfortunately, fraudsters have seized upon its capabilities and are using it as a means to propagate deceptive trading strategies like Robot Trading. These scams typically involve individuals or groups posing as experienced traders or financial advisors, offering access to ChatGPT algorithms that allegedly generate profitable trades.
  • However, ChatGPT, as a language model, lacks real-time data since its database is not up-to date, a deep understanding of financial markets, the ability to execute trades, and comprehensive risk management and analysis. Although it can provide general information and assist in generating trading ideas, or is some cases help to write trading code for trading startegy like algo or Api, it is essential to supplement its capabilities with specialized financial tools, up-to-date data, and expert knowledge from financial professionals to engage in successful trading activities.

One of the primary methods employed by these scammers is the creation of sleek and professional-looking websites and social media profiles, designed to project an air of legitimacy. They often showcase impressive performance records, testimonials, and success stories from purported users of the ChatGPT trading strategies. These fraudulent actors employ persuasive tactics, manipulating emotions and capitalizing on individuals' desire for quick financial gains.

Once individuals are lured into these scams, they are typically required to pay a substantial fee to access the ChatGPT algorithms or receive personalized trading advice. However, instead of receiving the promised strategies, victims either receive outdated or generic trading information that is freely available online, or they receive nothing at all.

Furthermore, scammers often request personal and financial information from their victims, which can be used for identity theft or further financial exploitation. In some cases, victims are even persuaded to grant remote access to their trading accounts, allowing the scammers to execute trades on their behalf. This inevitably leads to significant losses as the scammers manipulate the trades for their own benefit.

Below are several websites associated with scams that promote ChatGPT trading bots:

  1. www.trendspider.com
  2. www.pionex.com
  3. www.tigergpt.com
  4. www.trade-gpt.ai
  5. www.gptrader.app

Regulatory bodies and law enforcement agencies worldwide are becoming increasingly aware of this growing menace and are taking steps to tackle these fraudulent activities. However, it remains a challenging task to identify and apprehend the perpetrators due to the complex nature of online scams and the anonymity afforded by the internet.

To protect themselves from falling victim to ChatGPT trading scams or any fraudulent investment schemes, individuals should exercise caution and adhere to the following precautions:

  1. Be skeptical of too-good-to-be-true claims: Promises of guaranteed profits and minimal risks should raise red flags. Legitimate investment opportunities are rarely without risks.
  2. Conduct thorough research: Verify the credentials of the individuals or platforms offering trading strategies. Check for licensing, accreditation, and positive reviews from trusted sources.
  3. Guard personal and financial information: Never share sensitive information, such as bank account details or identification documents, with unverified or suspicious entities.
  4. Consult reputable financial advisors: Seek advice from established financial professionals who have a proven track record in the industry. They can provide expert guidance on investment strategies.
  5. Stay informed about scams: Keep up to date with the latest scamming techniques and tactics. Be aware of common red flags and educate yourself about the risks associated with online trading.

As technology continues to advance, it is crucial for individuals to remain vigilant and exercise caution when engaging with online platforms promising financial gains, so it is best to choose verified Broker and run startegies from verified sources (see our list of Brokers for AutoTrading). The rise of ChatGPT trading scams serves as a reminder that while AI can provide incredible opportunities, it also carries the risk of exploitation by malicious actors. By staying informed and adopting a healthy skepticism, individuals can protect themselves from falling victim to such fraudulent schemes and ensure their financial well-being.

Coinbase Launches Offshore Crypto Derivatives Exchange

Posted on by Adam Smith
Coinbase Launches Offshore Crypto Derivatives Exchange

A US-based Crypto exchange company Coinbase has recently unveiled the launch of its international entity of Crypto Derivatives Exchange in Bermuda as a part of its global expansion strategy. This strategic move comes as the company faces regulatory headwinds at home.

Coinbase's new offshore cryptocurrency entity, named Coinbase International Exchange, will enable non-US institutional users to engage in spot and derivatives trading at the outset. As the first derivatives contracts, Bitcoin and Ether futures contracts are set to be introduced; nevertheless, it is anticipated that additional products will be launched shortly thereafter.

It is set initially that Coinbase will serve institutional traders and market makers who will be offered up to five times leverage. The trades will be settled in USDC, a stablecoin pegged to the US dollar.

These expansions come as the US regulators set restrictions on the industry amid the recent catastrophic events including the downfall of FTX and the subsequent bankruptcy of the US Crypto-friendly banks.

"Rest assured that Coinbase is committed to the US, but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs." Coinbase wrote in a blog post. "We would like to see the US take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the US. The Coinbase International Exchange is an expansion, bringing the safest, most trusted name in crypto to the global market."

As a result of these pressures, other cryptocurrency firms are compelled to expand their operations overseas. In response, Gemini has also disclosed its plans to launch an international derivatives exchange.

ThinkMarkets Goes Public via SPAC Deal in Canada

Posted on by Adam Smith
ThinkMarkets Goes Public

ThinkMarkets, an Australian-based broker operated by Think Financial Group Holdings Limited, has announced its plans to go public through a reverse merger with Canada-listed blank check company, FG Acquisition Corp. The anticipated listing is scheduled for July 2023. (Read our detailed review about ThinkMarkets)

  • Nauman Anees, Co-Founder and CEO of ThinkMarkets expressed excitement about embarking on this new phase as a publicly traded company with the support of FGAC. Nauman Anees will assume the role of CEO in the merged entity, while the other Co-Founder, Faizan Anees, will become the President.
  • According to Nauman Anees, the decision to list on the TSX in Canada offers an efficient pathway into the public markets, and the company sees significant opportunities to expand its product and service offerings in Canada.

ThinkMarkets provides retail forex trading services and also operates an institutional presence with a liquidity provisioning platform launched in 2021. The broker boasts a substantial client base of 138,500 traders from 165 countries. With a strong focus on growth, ThinkMarkets achieved a 24% Compound Annual Growth Rate (CAGR) and generated $62 million in revenue in 2022.

While the majority of its business is in the retail sector, ThinkMarkets is experiencing year-over-year growth in its institutional business. In addition to its presence in Australia, the broker has expanded internationally, obtaining a license in New Zealand earlier this year and entering the Japanese market through the acquisition of a local FX firm.

Admirals to Revoke Estonian License Amids Global Consolidation

Posted on by Adam Smith
Admirals to Revoke Estonian License
Admiral Markets

Admirals has announced its plan to withdraw its investment company license granted in Estonia as part of restructuring. The restructuring stems from the necessity to expand the company's global presence. However, this change will have no impact on the Admiral Markets' existing clientele. (Read our detailed review of Admiral Markets)

Admirals Group AS, the parent firm of Forex and CFD trading company Admirals, is planning to merge with its Estonian subsidiary, Admirals Markets AS, in the first half of the upcoming year. To implement the plan, the company intends to withdraw its Estonian license, assumably in August this year.

According to the company's announcement, the decision to restructure comes from the necessity to expand its global presence, as the company has already significantly positioned itself in many regions over the past few years. Admirals also reassures that the change will have no impact on their existing clients. Moreover, it stated that MoneyZen — a trading platform regulated by Estonian Financial Supervision and Resolution Authority — will continue to operate in the country. (Platform's official website: moneyzen.eu)

Admiral Groups runs several subsidiaries in over 18 countries with client portfolios in over 145 countries and is internationally regulated in the UK, Canada, Cyprus, Australia, and South Africa.

In addition to restructuring, Admirals revealed its plans to buyback a total of 18,268 Tier 2 bonds worth €1.9 million from its investors.

For additional details regarding the broker's proposal, please visit their official website - admiralmarkets.com

HFM Introduces New Virtual Analyst

Posted on by Adam Smith
HFM virtual analyst Kate
The award-winning broker brings markets closer to its clients with the use of artificial intelligence (AI).

HFM, a global multi-asset broker, has made an intriguing advancement by introducing Kate, its virtual analyst. For HFM, the purpose of introducing Kate is to assist traders in staying updated with significant market trends and facilitating them in making well-informed trading choices.

Kate, the AI avatar created by HFM, possesses the remarkable capacity to converse fluently in over 120 languages and accents. In addition to its lifelike appearance, Kate serves as an extra source for HFM clients to obtain insights about the worldwide financial markets and enables them to stay ahead of the game. This tool is a valuable asset for HFM with its main purpose that for training, how-to, and product marketing videos.

An HFM representative expressed their enthusiasm for the virtual analyst, stating how thrilled they are to connect with the global clientele through this interactive, enjoyable, and captivating medium. He noted that their main objective is to enhance accessibility to the financial markets for the broker’s current and potential clients. To achieve this they want to provide the traders with an immersive trading experience and this time they aim to do so with the assistance of their virtual analyst, Kate.

As such, HFM views the implementation of AI in its services, as a significant and favorable advancement that can provide traders with an immersive trading experience and enhance their trading abilities. This technology not only enables HFM to gain deeper insights into their clients’ needs and develop more empathetic interactions but also enhances communication and increases client satisfaction and loyalty. Overall, HFM considers this integration of AI to be a valuable development that can benefit both the company and its clients.

About HFM

HF Markets Group, operating under the brand name HFM, previously known as HotForex, is a globally recognized multi-asset broker, serving over 3.5 million live accounts worldwide, and has received over 60 industry awards over the past twelve years. The company provides a range of account types, innovative products, platforms, tools, and educational resources, along with exceptional customer service and unmatched trading conditions, to support individuals and institutional customers in their online Forex and CFD trading activities.

Apple Relists Popular MT4 MT5 Trading Apps After Six-Month Delisting

Posted on by Adam Smith

Apple has relisted the popular trading apps MetaTrader4 and MetaTrader5 on its AppStore after a six-month delisting. This means that iOS users can once again download the two trading platforms and that existing users will receive updates. Thus, you have the possibility to trade with TriumphFX which uses the MT4 trading platform.

Apple relists popular MT$ MT5 trading platforms
MT4 MT5 are back on iOS

The relisting follows a lengthy negotiation process between MetaQuotes, the Cyprus-based software company behind the apps, and Apple. MetaQuotes was required to provide detailed explanations on operational technicalities and other requested insights to satisfy Apple's requirements.

  • MetaTrader4 and MetaTrader5 are leading third-party trading platforms in the retail forex and contracts for differences (CFDs) trading industry, with a total market share of 83.8% as of the end of Q2 2022, according to Finance Magnates Intelligence.
  • The delisting last September came as a surprise to many in the industry, with no proper explanation given by Apple for the move. However, industry insiders speculated that the company was concerned about the use of the apps by offshore-based fraudsters.
  • The delisting forced MetaQuotes to focus on its web-based mobile platform, and the company launched a new MT5 web terminal last November, highlighting that there was no need to download a mobile app from the Apple App Store or Google Play.

Despite the setback, MetaQuotes has continued to innovate, recently launching a messaging app with financial news and analytics tips for traders. The company also offers a "Tradays Forex Calendar" on the AppStore and five applications on Google Play, including the two trading platforms and an app that shows the current US dollars/Colombian pesos exchange rate with historical price data.

The relisting of the popular trading apps on Apple's AppStore is a welcome development for MetaQuotes and its users. It will enable iOS users to continue using popular trading platforms and benefit from the latest updates and features.

Credit Suisse Shares Surge After Swiss Central Bank Backstop and Debt Buyback

Posted on by Adam Smith
Credit Suisse Shares Surge
Credit Suisse Shares

Credit Suisse shares have made a strong recovery, increasing by over 20% on Thursday, after the bank announced plans to borrow up to CHF 50 billion ($54 billion) from the Swiss National Bank (SNB) and buy back around CHF 3 billion worth of its debt. The move aims to improve liquidity and ease investor concerns following a turbulent week for the lender. The SNB had stated on Wednesday that it was prepared to provide a liquidity backstop after Credit Suisse's stock price plunged by as much as 30%.

The decline in share price came as the chair of Saudi National Bank, a key Credit Suisse shareholder, dismissed the possibility of further investment. The drop also coincided with turmoil in global banking stocks following the collapse of Silicon Valley Bank. Credit Suisse stated that its decision to borrow from the SNB was a proactive measure to bolster liquidity through a loan facility and a short-term liquidity facility.

In an effort to buy back debt, the bank plans to tender a cash offer for 10 US dollar-denominated senior debt securities worth up to $2.5 billion and four euro-denominated senior debt securities worth up to €500 million. The offers are set to expire on March 22.

  • CEO Ulrich Körner described the steps as "decisive action to strengthen Credit Suisse" as the bank continues its strategic transformation. Körner's restructuring efforts have included the sale of part of Credit Suisse's investment bank and the elimination of thousands of jobs. Yields on the bank's bonds dropped slightly following the announcement, while spreads on its five-year credit default swaps fell from 980 basis points to 898 bps. Meantime, check out swap-free account forex brokers for safe trading.
  • UK Chancellor Jeremy Hunt and Bank of England Governor Andrew Bailey are said to be monitoring the situation closely. Analysts have suggested that the improved liquidity position and the support from the SNB and Swiss Financial Market Supervisory Authority will help Credit Suisse regain the trust of investors. However, some uncertainty still remains.
  • The latest developments at Credit Suisse have prompted speculation about the bank's future, with JPMorgan analysts suggesting that a takeover, possibly by UBS, is the most likely scenario. This comes as Credit Suisse attempts to rebuild investor confidence following a series of scandals and setbacks that pushed its stock price to an all-time low.

Credit Suisse's announcement and the SNB's liquidity backstop have provided much-needed relief for the beleaguered bank, whose shares had plummeted 39% this year and 85% over the past two years. The bank's market value had fallen below CHF 7 billion, just months after raising CHF 4 billion in capital.

The lender's challenges were further compounded earlier this week when PwC, its auditor, identified "material weaknesses" in Credit Suisse's financial reporting controls. This led to a delay in the publication of the bank's annual report. On Wednesday, Saudi National Bank chair Ammar Alkhudairy stated that the bank had no plans to provide further capital to Credit Suisse, despite having acquired a 10% stake in the Swiss bank last year.

Alkhudairy cited concerns about unwanted regulatory requirements as a result of owning a larger share in Credit Suisse but expressed support for the bank's restructuring plan, adding that he did not believe it required additional capital.

The recent events at Credit Suisse have drawn attention to the vulnerability of European banks, which hold significant bond portfolios whose paper value has been impacted by rising interest rates. While the bank's measures have helped to alleviate immediate concerns, Credit Suisse must continue its strategic transformation and address remaining uncertainties to rebuild investor confidence and secure its long-term future.

ZuluTrade Gains FSC Approval to Offer Wealth Management Services, Expanding Its Market Presence

Posted on by Adam Smith
ZuluTrade Gains FSC Approval to Offer Wealth Management Services

Social trading leader ZuluTrade has announced its expansion into the wealth management sector, following approval from the Financial Services Commission (FSC) of Mauritius (Licence No. IK21000018). As a member of the Finvasia Group of companies, ZuluTrade can now provide an array of wealth management services, broadening its offerings to investors and brokers alike.

In January 2023, Finvasia Capital Limited received an Investment Banking Licence from the FSC, which extends to group companies such as ZuluTrade. This approval marks a significant achievement for both companies. Finvasia Group Co-founder and CMD Sarvjeet Virk commented on the development, stating that the FSC license represents an important milestone on ZuluTrade's roadmap and opens new growth horizons for the company.

Under the new license, the platform can provide services such as Investment Dealer, Investment Adviser, Corporate Finance Advisory, Asset Management, and Distribution of Financial Products. The firm will offer broker-agnostic social wealth management and social trading services, giving investors access to a wide range of tools and resources, regardless of their chosen platform or broker. These offerings include diversification of instruments, social feeds, access to strategies, backtesting, and the Trading Automator.

ZuluTrade also presents a compelling proposition for brokers at an institutional level, enabling them to expand into new verticals by joining the network. The company's versatile technology allows brokers operating on MT4, MT5, ActTrader, or XOH infrastructure to seamlessly offer ZuluTrade's social wealth management services to their clients without limitations.

Finvasia's Co-founder and ZuluTrade CEO Tajinder Virk highlighted the opportunities that the Mauritius licensing presents, stating that the company aims to make wealth management simple, social, and accessible to all investors. The company's broker-agnostic technology offers access to a wide range of markets and ready-made strategy proposals, giving investors the freedom to choose their preferred platform or broker, setting ZuluTrade apart from its competitors.

To learn more about the company and its service offering visit ZuluTrade's official website.

Stock Indexes Rise and Dollar Weakens While Oil Rallies

Posted on by Adam Smith

Stock indexes advanced on Thursday, although they finished below session highs, while the dollar declined as investors shifted their focus to upcoming inflation data and the interest rate hike outlook. Longer-dated U. Treasury yields fell in anticipation of Friday's personal consumption expenditures (PCE) data release. Economists predict core prices to have risen by 0.4% in February and posted a 4.7% annual increase.

The US dollar slipped to a one-week low against the euro, bolstered by German inflation data. Oil prices increased over 1% due to lower US crude stockpiles and an export halt from Iraq's Kurdistan region, counterbalancing pressure from a smaller-than-expected cut to Russian supplies.

Investors' risk appetite on Thursday was fueled by hopes of bank turmoil containment and speculation that central banks worldwide are nearing the end of their interest rate hiking cycles, according to Jeff Kleintop, Chief Global Investment Strategist at Charles Schwab. However, hawkish comments from Federal Reserve officials raised concerns among investors, who were bracing for Friday's critical economic data and potential volatility from traders' end-of-quarter position adjustments.

Despite recent events, including the collapse of two US banks and the rescue of a major European bank, which led to speculation that the Fed might halt rate hikes to avoid a broader crisis, Federal Reserve officials signaled that more work was needed to address inflation. The focus on inflation and the Fed's stance pushed stock markets higher, with technology shares contributing the most significant gains.

In the currency market, the dollar index fell 0.477%, while the euro rose 0.57% against the dollar. The Japanese yen and Sterling also strengthened against the greenback. US crude oil prices rose 1.92%, and Brent increased by 1.25%. Gold prices gained as a weaker dollar and lower bond yields drove demand for the precious metal, with investors closely watching US inflation data to assess the Fed's next move.