Belgium’s FSMA Red Flags 40 Trading Platforms as ‘Fraudulent’

Belgium’s Financial Services and Markets Authority (FSMA), one of the stringent European financial market regulators, added the names of 40 trading platforms that are illegally offering financial services in the country.

Some of these platforms are Bitalpha AI, Capital Forex Live, Capital One Markets, Cryptoneyx, FX EliteTrader, GFE Markets, Gigachains, Inetmarkets, Marketsbank, Plus12, and many more.

The regulator also flagged two “websites for trading softwares and courses” that refer visitors to fraudulent online trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Read this Term platforms. These two names are BiTraderPro and Trading Central.

The names were prepared after the Belgian regulator received complaints from consumers.

None of the names were of any well-known trading brand. Rather, these are offshore entities and fraudulent platforms that are operating in a market that already banned the retail sale of over-the-counter (OTC) derivatives.

Aggressive Tactics

According to the FSMA, the flagged platforms “try to arouse consumers’ curiosity by placing scam ads on social media.” It further highlighted that “a (well-known) person often explains how to get rich quick” in those “fake ads”.

The platforms place fake ads as a part of the offerings of virtual currencies or trading courses. The fraudsters approach the potential investors who provide contact details and offer a “concrete investment proposal.”

Several of these fraudulent trading platforms also approach victims through dating platforms. Earlier, the FSMA also warned against the rampant trading scams being pulled out using dating platforms.

“These platforms act very aggressively,” the FSMA stated.

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“Scammers even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims.”

The latest list came months after the FSMA flagged 38 other online trading platforms for their fraudulent operations.