Grotfinance – The alleged financial service provider Grotfinance presented itself as an online broker on its website, which is currently no longer accessible.

You encounter problems with the distribution of your capital investment? Our lawyers can help you with claims against Grotfinance.

Grotfinance – Reviews

Currently there is an extremely high number of online trading platforms such as Grotfinance. This means that investing in the unpredictable financial markets has never been as easy as it is now, but also as risky.

Especially because there are numerous opportunities, choosing an online broker can be time-consuming and intimidating. Especially if you want it to match your individual investment preferences.

Are you thinking about investing capital with Grotfinance? Then the following points are important for you as an investor.

  • When trading on the World Wide Web, you can choose from a large number of order types.
  • Government regulated brokers on the internet, trustworthy websites, costs and commissions, product options and customer feedbacks are just a few of the points you would need to plan for when making your irrevocable choice.
  • An ideal place for investors to inquire about share certificates, futures, binary options and cryptocurrency is a website like this one.

The following information is general advice for investors – regardless of the platform you invest in.

Regulatory approval – is there a licence in the case of Grotfinance?

Both financial markets and investor protection benefit from rules of conduct and organisational responsibilities. Investment services firms and providers such as Grotfinance must comply with a number of regulations. The same applies to their employees. This is to avoid conflicts and associated disadvantages for investors.

This includes the responsibility of the financial services provider to inform its own corporate clients about the most significant features of a share deal before it is concluded. This applies both to the individual investor and to the investment itself. In line with this idea, additional information is mandatory for corporate clients who wish to engage in highly speculative or risky transactions.

Providers such as Grotfinance have a responsibility towards their clients. This goes significantly beyond making a product or service available.

Does the provider have a licence to sell investment products? You should definitely check this. To do this, you can use the broker check database of a financial authority and enter the name of the service provider in the search field.

What to do – if financial service providers such as Grotfinance demand transfers abroad?

Is it advantageous for you to transfer capital outside Europe? Consider in detail what you are doing. Numerous investors have already lost funds in the process. You may lose track of where your money is going and how it is invested.

When money has been given to a company, it has happened that the company has not invested the amount received as agreed or even at all. There were also cases where the company simply did not exist, even though it appeared in a similar way to Grotfinance.

Apart from the licensed providers, there are many dubious online trading platforms, where a very similar procedure can be seen in most cases. Potential investors are contacted by employees of the respective trading platform. For example, by telephone, as soon as the new customer has provided non-binding contact information on the trading website.

In considerable cases, however, they are also contacted by mass e-mails. These entice with supposedly profitable investments.

The investor is promptly provided with his own online broker who instructs him on how to set up an online trading account and make his first investments. The investor feels well advised at first and trading usually starts with small sums.

But soon larger investments are required – often in accounts abroad. These deposits are intended to increase the possible profits.

Difficulties with dubious financial service providers finally arise as soon as the investor demands a payout. This is usually withheld continuously or linked to additional payments such as alleged taxes and brokerage commissions.

In the past, criminals operated solely from obscure locations. Today, they operate from a wide variety of locations such as the United Kingdom (including London), the Netherlands, Canada, Spain, Dubai and others.

It is challenging for most people to recognise tricky scams. Institution often receive email orders with immense order volumes that are disproportionate to the typical purchase amounts. To lure the German company, they work with huge promises of profits.

However, the extreme order volume serves solely as a means of exerting pressure in conversations with the seller in order to demand correspondingly high registration costs.

It is not always possible to ascertain whether the recipient of this payment is also the purchaser of the products. Nevertheless, it can be assumed that companies operating abroad will not have to pay local tax on shipments to other countries for the time being. Check whether this also applies to investments with Grotfinance.

What does pump and dump mean?

The term pump and dump is used to explain a situation where the market price of a share is unnaturally inflated by insiders. Afterwards, this share is sold again at a loss to the other investors.

This is therefore a fraud. A deception that profits from the ignorance of small investors and stock market novices.

This tactic is therefore illegal in a controlled securities market and for companies like Grotfinance. The crypto market, in contrast, is still largely “Wild West” as far as such tactics are concerned. Therefore, special caution is necessary!

Pump-and-dump scams are more common there in connection with the so-called altcoins. The pump and dump scam is used by fraudsters to drive up the price of an unknown or possibly independently created currency. They achieve this by spreading false information on the web or in social media or by recruiting co-investors with unreasonable profit expectations.

So make sure that the provider Grotfinance provides you with all the essential information on this topic, if you wish.

Recognising investment fraud in general

You want to invest with Grotfinance? In this case, you should find out all significant information about the company.

Investment fraud is a special form of fraud. The criminal guarantees or pretends a profitable investment in the capital market to a large circle of people.

True to § 264a StGB (German Criminal Code), capital investment fraud is sanctioned with a prison sentence of up to three years or a fine.

Subsequent services and strategies can sometimes be considered as capital investment fraud:

  • Boiler room scam, a cold-calling scheme in which investors are sought by telephone call
  • Equity investments in companies
  • Fraudsters use the brand name of the service provider Grotfinance and clone the company
  • Participations in shares, funds and certificates

Those who have fallen for investment scams have often invested a lot of money. What can you do in case of investment fraud?

  1. Contact the police and the financial authorities through a legal adviser: Police collective proceedings exist against some fraudulent companies in Germany and also abroad. The police are entitled to have the accounts of the rip-off artists blocked and to keep the money safe. In addition, the public prosecutor’s office becomes active.
  2. Withdraw or contest contracts: Affected persons who have concluded a contract can withdraw or contest it in the case of investment fraud.
  3. Asserting claims for damages: Persons who were inaccurately informed can assert claims for damages against the investment advisor.
  4. Retrieve funds: If payments have been realised via the credit card, this can in many cases be retrieved by appointing a law firm. In the case of transfers from the current account, this can often be recovered by bank order.

Opaque exit alternatives

Make sure you know when and how much money will be repaid to you. It is best to bypass longer-term contracts that cannot be terminated early or where you would suffer large economic losses.

Conclude long-term contracts without the possibility of early termination solely with service providers such as Grotfinance, whose reliability you have no doubts about.

Even if you have the option to waive a contract at any time or to terminate it over a defined period of time, you should be critical. Even if these options do exist, you may still be vulnerable to monetary losses. Make sure you know in detail how much capital you will get back if things go wrong.

The following rule applies to securities transactions:

Before the end of the contract period, find out what options you have to get rid of a security.

It is usually crucial to be aware of whether there is a liquid market for products such as those offered by Grotfinance.

It is possible to sell shares through a broker or a financial institution. All 3 methods are acceptable for placing a sell order. The actual selling process is therefore carried out via a stock exchange (e.g. Berlin, Stuttgart, Frankfurt, Tradegate or Xetra) (e.g. for penny stocks).

Order supplements can be used to direct the execution of the order in advance. The sale of the share certificates takes place at a date and place defined by you.

You would like to recover your investment from Grotfinance? Our lawyers can help

Investors who have suffered losses with a provider like Grotfinance, or who are having difficulty getting their money paid out, should first and foremost avoid making additional deposits. Next, it is definitely advisable to consult a lawyer and have him look into any possibility of recovering your money.

It is important:

  • never lose hope
  • seek legal help
  • react quickly

Do you have questions about Grotfinance? In this case, our legal advisors are ready to provide you with information.

Feel free to contact us to discuss the topic of Grotfinance.