Austria’s FMA adds forex broker TradeInvest90 to warning list

Posted on by bar

Austria’s financial markets and services regulator FMA has warned that the brokerage TradeInvest90 is not authorized to provide financial services that require a license in Austria.
The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.

TradeInvest90 logo
According to the website, TradeInvest90 is an online trading provider that offers over 1,000 financial assets traded in CFDs and FX. Tradeinvest90 is owned and operated by Celestial Trading Ltd. licensed and regulated by the Montenegro security exchange commission. However, the company is not actually regulated by any of the authorities and is not entitled to operate in Europe or on any other regulated market. Also, turned out that Celestial Trading Ltd. is registered offshore, in Seychelles. Those brokers registered offshore are not considered as reliable ones, because they are basically are not overseen by any authority.
In addition, Celestial Trading Ltd. has been blacklisted many times by different regulators on behalf of some unreliable brokers we have previously reviewed: Tradovest, XMarkets, Option888.
Investing with a properly regulated broker is crucial for the safety of any investment. Here are some reliable regulators: UK’s FCA, the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC). These are well-respected institutions, also enforce strict regulatory standards upon all brokers in their jurisdictions. You can read our review on this broker here.

FINMA has issued a warning against Trade Capital

Posted on by bar

finma logo

The Switzerland financial markets and service providers regulator FINMA has warned of unregulated forex broker Trade Capital.
The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. This includes the supervision of banks, insurance companies, stock exchanges, and securities dealers, as well as other financial intermediaries in Switzerland. FINMA keeps a close eye on the unregulated brokers and usually warns in a timely manner of those who make false claims of Swiss regulation or location but are not Swiss-regulated.

Trade Capital logo
Trade Capital operates through the website www.tradecapital.com and offers to trade with some forex pairs, cryptocurrencies, CFDs on commodities, and precious metals. The company is owned and managed by Trade Capital Investments LTD. The company is based in Geneve, Switzerland. According to the firm’s terms and conditions, Trade Capital is a legal entity of Lozareo Group LP, UK-registered company. Although, there are no records about Trade Capital in the registers of the UK’s Financial Conduct Authority. They do not provide any information about the regulation/license of the company and seems like Trade Capital is not licensed or overseen by any of the financial regulators.
The website supports English, German, Italian and Spanish languages, which coincides with the contact phone numbers provided on the websites (UK, German and Swiss). This fact only proves what countries the broker has been targeting without having any legal rights for that.
The negative comments about the Trade Capital on the net also reveal that those who invested are having hard times with withdrawing their money, while the company representatives are cold calling them promising high returns.
You can read our review on this broker here.

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.

CySec has introduced new rules for Forex brokers offering cryptocurrency CFDs

Posted on by bar

Сyprus financial regulator (CySec) has introduced a new set of the rules governing brokerage companies should follow when offering on virtual currencies, specifically cryptocurrency CFD trading to clients. The Cyprus Securities and Exchange Commission, known as CySEC (www.cysec.gov.cy), is the financial regulatory agency of Cyprus. As an EU member state, CySEC's financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC. The main point of bringing in the changes in the regulation is that the cryptocurrencies themselves are not considered financial instruments as defined by European rule-setter ESMA, so the derivatives of the cryptocurrencies including crypto CFDs are financial instruments. All Forex brokers who provide crypto trading should do that only through CFD form and not in actual cryptos. If FX broker is offering crypro CFDs trading from Cyprus, it must be authorised and must comply with the applicable national legislation, directly applicable European Union regulations, the Guidelines or Recommendations issued by the European Supervisory Authorities (ESMA and the European Banking Authority)adopted by CySec and needs to follow the presented set of rules for crypto trading. The CySec and its members consider that the risks connected with the crypto CFD trading are high. So Cyprus Investment Firms (CIFs) should consequently approach the provision of such services with caution, in the knowledge that close attention will be paid to all of their legal obligations.

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.