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Warning: Scam Brokers tricking South Africans out of their investments

Warning: Scam Brokers tricking South Africans out of their investments

A recent report by FraudBrokers.net has shown a worldwide increase of 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 investor tries 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 gone with it.

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. 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:

  • 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, the South African FSCA, etc.
  • The Broker or Investment Platform forces you to make deposits repeatedly.
  • The Broker or Investment Platform’s website is a clone of another legitimate broker’s website. They copy content and design exactly.
  • When you want to withdraw your money, the Broker or Investment Platform does not allow you to do so.
  • The Broker or Investment Platform is not regulated by any known and established authorized regulating authority.
  • The broker or Investment Platform suddenly closes its website, and their phones stop working.
  • Your account was frozen suddenly.

South Africa has an extremely robust and world-class regulatory framework. Still, it’s also the investor’s responsibility 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, covering areas in Europe and the Middle East, opening in South Africa in 2021. It’s fully licensed with the Financial Services Conduct Authority in South Africa and every region within which it operates.

As a CFD (contracts for difference) trading platform, CAPEX.com can assure investors 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 CAPEX Academy designed to help the first-time trader with the initial steps of getting started. With CAPEX.com, you’re working with a financial institution with a secure international track record.

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.