Endotech – The alleged online trader Endotech offers solutions for automated trading on its website. These are so-called “Expert Advisors”, i.e. software that makes recommendations for certain trades or executes them independently. Meanwhile, the Belgian Financial Supervisory Authority has issued a warning about Endotech.

Are you currently a client of Endotech or are you considering investing capital in the near future? Then the following questions are certainly weighty for you:

  • Are there any experiences from other investors with Endotech?
  • Is the broker Endotech reputable?
  • What can consumers possibly do in the event of losses?

The lawyers of the Herfurtner law firm have compiled answers to these questions in this article.

Table of contents

  1. Endotech experiences
  2. Endotech Website
  3. Contact Endotech
  4. Endotech Licence
  5. Regulatory warnings from regulators about Endotech
  6. Online Trading Tips
  7. What to do in case of losses?

In addition to the question of whether Endotech offers a serious offer, it is crucial to look at the principles for promising trading. Our legal advisors will also explain how Endotech compares to other financial products. Furthermore, we are available to assist you with any questions or disputes you may have.

Endotech Experience

On its website, Endotech describes itself as providing the first cohesive and actionable service of AI and machine learning technologies for cryptocurrencies. Accordingly, it serves the target group of the blockchain investment market.

Endotech’s solutions are also designed to scale with the increasing size of the various cryptocurrencies available for trading. In addition, the provider says it is able to provide valuable data on all developments in the crypto markets.

Furthermore, it can be read that Endotech’s vision is to introduce its customers to the advantages of automated trading. In particular, high efficiency plays a role here. Accordingly, the company develops powerful and AI-based bots and strategies that are offered to its own clientele for use.

According to the website, Endotech was founded in 2012. The provider also presents some of the advantages of its own dashboard on its homepage:

  • Choice of investment bot,
  • Market overview through AI-based technology,
  • Information on the Pareto principle influencing the market,
  • Investments in rising markets,
  • current news affecting the market.

The website also states that Endotech is aimed at institutional investors. Accordingly, one can purchase an annual licence for the use of an institutional licence at a price of 125,000 US dollars. In addition, one can establish a connection to Binance, Biance.US, Gemini or Coinbase Pro via an API.

Endotech on the net

Statements about the alleged online broker Endotech can be found on the company’s English-language website at the URL https://endotech.io.

Management / CEO

According to § 6 of the German Media State Treaty (MDStV), the name of the person responsible for the content of the website must be stated in the imprint. In most cases, this is a member of the provider’s management. It is not only obligatory to identify the persons responsible by name, but it is also a sign of transparency.

As of May 2021, there is no information on the persons responsible for the content on Endotech’s online presence.

Imprint information

In the Federal Republic of Germany, according to § 5 of the German Telemedia Act (TMG), there are basic obligations to provide information and mandatory details for the imprint. As a result, this obligation for “provider identification” exists for all commercially operated websites.

This is because the information is intended to inform the visitor of an Internet presence who he or she is dealing with. Finally, the addressable postal address of the website owner plays a role here if legal claims are to be enforced against him.

In this context, it is also important to note that the obligation to maintain an imprint applies equally to providers domiciled abroad who carry out their business activities in Germany. At the time of May 2021, there was no legally binding imprint on Endotech’s website.

Operating company and trademark

The name of the website, platform or offer is not always congruent with the operating company. In the past, it has happened several times that providers operate with many different trademarks at the same time.

Moreover, it is common practice for certain providers to deactivate the websites of discredited trademarks and to return to the market a short time later using a new trademark. Therefore, when researching news and information about a provider, it is always a good idea to look not only at the trademark but also at the operating company.

The respective data can be found either in the imprint or often also in the footer of a website. On the Endotech website, there was no difference between a trademark and an operating company at the time of observation.

Domain information

Various providers use their many years of practical experience to suggest authenticity. However, such statements are often contradicted by the registration date of the domain. Consequently, it must be questioned who the domain holder is and at what time the domain was registered.

According to self-disclosure, Endotech was established in 2012.

Our lawyers retrieved the data on Endotech on 17 May 2021 with this result:

Domain Name: ENDOTECH.IO

Updated Date: 2021-01-10T22:21:52Z

Creation Date: 2018-02-14T05:24:52Z

Registry Expiry Date: 2022-02-14T05:24:52Z

Endotech Contact Details

The following data was available on Endotech’s online presence at the time of writing:

  • Endotech call number: n. A.
  • Endotech postal address: n. d. A.
  • Endotech e-mail address: support[a]endotech.io

Endotech Authorisation

The existence of a valid authorisation from a state-owned European financial supervisory authority can be an important characteristic of whether a service provider is trustworthy. This is because the granting of a licence requires a great deal of financial effort on the part of the service provider.

However, it does not necessarily have to be a scam if an online broker omits information about its licence or its own regulatory status. The following financial supervisory authorities, among others, are responsible for issuing licences and supervising financial service providers:

  • BaFin, Germany (Federal Financial Supervisory Authority)
  • CySec, Cyprus (Cyprus Securities and Exchange Commission)
  • SFC, Hong Kong (Securities and Futures Commission)
  • CSSF, Luxembourg (Commission de Surveillance du Secteur Financier)
  • FSMA, Belgium (Financial Services and Markets Authority)

No information on regulatory licensing could be found on Endotech’s online presence at the time of writing in May 2021. Investors can discuss what this means in an exchange with legal counsel at our law firm.

Regulatory warning on Endotech

The Belgian Financial Supervisory Authority (FSMA) has issued a warning on the subject of “Expert Advisors” (trading software) dated 26 April 2021.

It states that some companies in Belgium offer so-called Expert Advisors in order to trade in products such as contracts for difference (CFD trading), currency pairs (forex trading) or cryptocurrencies. However, these companies do not have an official licence for their activities.

In addition, the authority had found that they were often pyramid schemes. Furthermore, the distribution of some of the products offered was prohibited in Belgium. Finally, the provider Endotech, among others, was in breach of Belgian legislation.

Online trading tips

Online trading like Endotech is the extension of traditional trading in financial instruments to the web. Here, as there, investors act on the premise of making profits through the acquisition and disposal of assets. Trading has long since ceased to be limited to securities. In fact, exchange traders also have these options to choose from, for example:

  • Government Bonds
  • Crypto trading with Bitcoins and Altcoins, e.g. Ethereum
  • Investment funds
  • Real estate
  • Foreign exchange trading
  • Commodities
  • listed index funds
  • Platinum
  • Cash

Online trading is handled via intermediaries such as online brokers or banking institutions that provide their clients with a specific trading solution. Above all, the rapid technical achievements of recent years have meant that online trading is now time-saving and uncomplicated and thus as accepted as it is popular.

The advantages of online trading

Digitalisation has also had an enormous impact on the world of finance, especially with regard to trading such as at Endotech. Because due to the technological possibilities, trading has gained particularly massive performance.

Whereas investors and traders once had to conclude their orders by telephone call, fax or post, this is now possible with a click of the mouse and with considerably less effort.

Aspects such as the term and type of trade, prices and quantities or even the key account data no longer have to be clarified personally between the provider Endotech and its customers. In this respect, the opportunity for online trading has brought about a number of conveniences:

  • Online traders have numerous tools and various indicators at their disposal.
  • A large number of tools can be applied automatically and immediately.
  • Learning documents on online trading, knowledge pools, analyses or trading training courses are often part of the offer.
  • The costs of the transaction have dropped significantly, as personal telephone advice is no longer required.
  • The platform executes the desired orders, all you need is an internet connection.
  • The risk of losses due to gaps is reduced.
  • The selection of tradable assets is broader and deeper.
  • Profits can also be earned with a low stake.

In addition, online trading not only brings plus points with regard to the uncomplicated use of the trading platform. Above all, due to the analysis options, indicators and the various tools, the investor enjoys noticeably more comfort.

The times when you had to draw your own charts or make your own calculations are over. Nowadays, online traders find a wide selection of order types in their system, which can be executed independently within the framework of day trading with the favoured broker of their choice.

The individual trading plan

Given the fact that there are so many order types, online traders can tailor a trading plan to their needs and make different configurations: Buy entries:

  • Buy Market Orders: Buy at the current market price
  • Buy Stop Orders: buy above the current market price
  • Buy Limit Orders: Buy below the current market price

Sell entries:

  • Sell Limit Orders: Selling below the current market price
  • Sell Stop Orders: Selling above the current market price
  • Sell Market Orders: Sell at current market price

Exit Orders:

  • Stop Loss: Exit at a loss as soon as the pre-set price is reached
  • Trailing Stop Orders: shifting of the stop loss, depending on the price development
  • Take Profit: Exit with profit when the pre-set price is reached

Another positive aspect of online trading from the investor’s perspective is the absence of any restrictions. Thus, you are free to choose your trading strategy and make your own trading style. At this point, there are many different approaches:

  • Automated trading with robots (“Expert Advisors”)
  • Intraday trading – opening and closing of positions within the period of one trading day
  • Swing trading – high-risk exploitation of fluctuating prices
  • Scalping: offensive short-term trading
  • Sustainable trading

A large number of those trading styles made online trading possible in the first place by eliminating the previously necessary telephone exchange with the provider. Accordingly, one can speak of a trading revolution that builds a bridge between numerous investors around the world and the global financial markets.

Investors are well advised to question the extent to which Endotech offers these conveniences.

The disadvantages of online trading

Not all that glitters is gold. This general rule also applies to online trading. Accordingly, apart from the advantages, there are also a number of disadvantages that interested investors should integrate into their considerations:

  • Investors should already be experienced in trading and pursue resilient strategies.
  • Investors should keep a constant eye on price movements.
  • The emergence of fraudulent trading platforms has led to immense risks of loss.
  • If wrong decisions are made, high losses are imminent.
  • Compared to conventional trading, it is rather hasty.

In particular, risky day trading is not appropriate for investors who are dealing with the subject area of trading for the first time. This is because the risk of incorrectly predicting the development of prices is immense, and in view of the time pressure, adjustments are not easy.

Consequently, this form of trading is more suitable for very knowledgeable investors or those with a pronounced appetite for risk. If you belong to this category, however, day trading is a way to generate results quickly. In addition, one benefits, for example, from the elimination of fees for overnight positions.

Finally, these financing costs should also be included in a holistic analysis of an investment. Furthermore, one saves oneself the proverbial rude awakening in the morning, should there be immediate and violent price changes. Such “gaps” develop quickly due to adverse reports about a company.

On the other hand, one quickly sees the success if one can report a profit at the end of a trading day. Furthermore, it is important for day traders to compare the trading fees of the different online brokers. It may be advisable to opt for a flat fee in the form of a fixed rate.

This pays off especially if you trade at a high frequency and separate order fees would significantly reduce your profit.

Identify risks

In order not to unnecessarily increase the risks of online trading, it is recommended to question which financial provider you want to use to operate on the markets. From the experience of our law firm, some questions have emerged that can be used to identify potential risks. With reference to the Endotech example, these would be as follows:

  • Does the exchange with Endotech result from an unsolicited phone call?
  • Is Endotech controlled by a European financial supervisory authority and is the company subject to official supervision?
  • What experiences have other investors already had with Endotech, what is the prevailing view in forums?
  • Does Endotech promise exceptionally high returns or a guaranteed return and hide or downplay the risks?
  • Is there an imprint on Endotech’s website and is it possible to find credible information about the company’s registered office?
  • Are there any warnings from lawyers or law firms representing clients who have suffered losses in connection with Endotech?
  • Can regulatory warnings about Endotech be found?

Conduct in the event of losses

In the event that one suspects that one has been defrauded in trading, it is recommended to immediately block further payments. This applies in particular to the case that the online broker recommends additional payments to compensate for deficits. Incidentally, one should try to recover the lost capital.

In this context, aggrieved parties can seek investor protection and contact the lawyers of our law firm. Our law firm examines both civil and criminal law options as well as possible claims for damages against the provider and against involved payment service providers such as banking institutions.

“A private investor who loses his capital in the course of online trading is by no means an isolated case. Many investors are deceived by the professional behaviour of the service providers and only realise too late that they are not responsible for their losses

Our advice is therefore not to despair, but to react quickly and actively. Because the prospect of recovering the lost money is often greater than the aggrieved investors realise. Would you like to talk to one of our lawyers about Endotech? Then go straight to our contact section here.