Innotrade – The online platform advertises itself as a broker. On its website, profitable investments in the areas of currencies, shares, commodities and indices are possible.

You have invested with Innotrade and want your capital back? The law firm Herfurtner will help you with any problems.

Innotrade – Broker overview

Currently there is a very high number of online trading platforms such as Innotrade. Thus, it has never been as easy but also risky as now to invest in the volatile financial markets.

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

Are you considering investing with Innotrade? In this case, the following aspects are important for you as an investor.

  • A suitable address for investors who want to find out about shares, futures, binary options and cryptocurrencies is a website like this one.
  • In online trading, you can use numerous order types.
  • Regulated brokers on the internet, trustworthy platforms, fees and brokerage commissions, offer options and reviews from clients are just some of the factors you would need to consider when making your final choice.
  • Access to the international stock markets is made easier and more lucrative for money investors through online investing.

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

Evaluate Innotrade trading offers in advance

The following thoughts should be considered when looking for options to invest your money on the internet:

  1. Look for an imprint on the service provider’s website. If this is not the case, it means: Hands off! But also take into account that an imprint can be faked.
  2. Financial service providers such as Innotrade must be licensed in Germany by the Federal Financial Supervisory Authority (BaFin). BaFin’s company database contains information on licensed service providers.
  3. In Germany, the imprint must include an address, the contact details of an authorised representative of Innotrade and a telephone number.
  4. Quality seals are often used by fake shops to suggest that they are reputable. To see if a cross-reference leads to the website of the cachet and if the shop is also listed there, click on the image of the cachet. It is quite possible that the owner of the homepage simply copied the quality seal from another website and transferred it to his current website without the adequate certification.

What to do – if financial service providers like Innotrade demand transfers abroad?

Is it advantageous for you to transfer money abroad? Look carefully at what you are doing. Quite a few investors have already lost assets in this context. You may lose track of where your money is going and how it is invested.

When money has been made available to a provider, it has often happened that the company did not invest the transferred amount as agreed or even not at all. There have also been cases where the company simply did not exist, although it presented itself in a similar way to Innotrade.

Apart from the licensed providers, there are quite a few dubious online trading websites, where a very similar procedure can be seen in the majority of cases. Potential investors are contacted by employees of the respective trading platform. For example, by telephone, after the investor has provided non-binding contact details on the service provider’s website.

In many cases, however, they are also contacted by e-mails sent out en masse. These entice with seemingly profitable investments.

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

But soon higher payments are demanded – often to foreign accounts. These payments are supposed to increase the potential profits.

Difficulties with dubious trading platforms finally arise when the investor demands repayment. This is often continually delayed or linked to additional payments such as alleged taxes and brokerage commissions.

In the past, the perpetrators operated exclusively from dubious locations. Now they operate from completely different places such as the United Kingdom (including London), the Netherlands, Canada, Spain, Dubai and others.

It is impossible for most people to expose tricky scams. Businesses often receive e-mail orders with huge order volumes that bear no relation to the usual purchase amounts. In order to lure the German company, very large promises of profits are used.

However, the extreme order volume functions solely as a means of pressure in the communication with the factory owner in order to demand correspondingly excessive approval and registration costs.

It is not always obvious whether the recipient of that payment is also the customer of the products. However, it can be assumed that companies that are active abroad will not have to pay regional taxes on deliveries to other countries in the foreseeable future. Check whether this also applies to investments with Innotrade.

Ponzi scheme: What are the dangers?

A Ponzi scheme is a type of money fraud. In this scheme, assets are pooled by new investors and then used to distribute capital to the former aggrieved persons.

The organisers of Ponzi schemes usually postulate that they would invest your capital and earn huge returns without putting your money at risk. Nevertheless, in many Ponzi schemes, the lawbreakers do not actually invest the capital they receive.

Rather, it is used to pay off people who paid in earlier. In this way, the criminals can keep some of the funds for themselves. So pay attention to the risk-reward ratio in all investments – including Innotrade.

Ponzi schemes require a steady inflow of fresh assets to keep running, as they have very little or no real income. Many of these structures fail when it becomes costly to attract fresh money investors or when a considerable number of investors drop out.

In the event that you want to invest money with a service provider such as Innotrade, you should act with caution without exception.

Among the clues you should look out for are:

  • Is there a problem with the documentation? If there are errors on your account statement, this may signal that your capital is not being invested properly.
  • The distribution of returns is not working? If you do not receive any payments or find it difficult to distribute, you should be vigilant. Ponzi scheme operators may be trying to get participants to stay with the promise of even greater returns if they don’t withdraw money.
  • Strategies that are difficult to identify. Keep your capital out of the stock market unless you know enough about it.
  • Risk-free returns with little or no volatility. Every investment contains some risk, and the riskier a deposit is, the more likely it is to yield a high return.
  • Investments that are not registered with financial regulators. In the vast majority of cases, Ponzi schemes are unregistered investments that are not supervised by state authorities such as Bafin.
  • Selling without a licence: Investment professionals and firms must be licensed or registered under federal and state securities regulations. The most common Ponzi schemes involve unlicensed people or providers.

Recognise investment fraud in general

Do you want to invest money with Innotrade? Then you should find out all the necessary information about the company.

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

Capital investment fraud is punishable by a prison sentence of up to three years or a fine, in accordance with Section 264a of the Criminal Code.

The following services and measures can sometimes be considered as capital investment fraud:

  • Unsolicited telephone advertising calls, so-called cold calling
  • Fraudsters use the brand name of the service provider Innotrade and clone the company
  • Shareholdings in companies
  • Participations in shares, funds and certificates

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

  1. Make a claim for damages: People who were misinformed can make claims for damages against the investment advisor.
  2. Revoke or contest contracts: Affected persons who have concluded a contract can revoke or contest said contract in case of investment fraud.
  3. Involve the police and financial supervisory authority through a lawyer: Collective police proceedings exist against certain fraudulent companies in the FRG and also in other countries. The criminal police are authorised to have the bank accounts of the rip-off artists blocked and the money confiscated. In addition, the public prosecutor’s office becomes active.
  4. Get your money back: If payments have been made via credit card, in many cases this can be recovered by calling in a law firm. In many cases, money transferred from a current account can be recovered by bank order.

Duty to inform about commissions and costs

Before investing with Innotrade, find out how much of your investment amount will be used to cover costs, fees and commissions. This is a useful time to look in detail at the information provided by the service providers!

Investors must be made aware of all estimated costs and how they affect the margin of financial service providers. Furthermore, the costs must be listed individually.

In the event that you request a presentation of all costs, the providers are under an obligation to provide you with this information.

For obvious reasons, a broker like Innotrade is usually interested in as many trading transactions as possible. Often the fees are so exorbitant that it is difficult to make a profit. The fees can even eat up the invested assets in a very short time.

Therefore, be sure to pay attention to the costs! The trading fees of the online broker must be publicly visible. The transparency of the structure of the costs is also specified in the regulatory requirements and licensing.

If there is a violation, the provider can have its official licence revoked.

Lawyers advise on Innotrade

If you have already made investments with Innotrade and now want to reclaim them, there are several ways to proceed.

  1. If an evaluation by our lawyers indicates that the service provider has probably acted dishonestly, we will file a criminal complaint on behalf of our client with the competent investigative authorities. Our law firm is in constant contact with public prosecutors who conduct nationwide investigations. As a rule, there are many hundreds or even thousands of injured parties in these criminal proceedings. The investigations also regularly extend abroad. In the past, the public prosecutor’s offices have repeatedly achieved significant successes.
  2. In the event that no solution is possible with the operator of the investment platform, there is the option of submitting a complaint to the competent financial supervisory authority. This authority reviews the facts of the case and can order the investment service provider to pay compensation. Our client then receives this amount of money back from the provider. Addresses for complaints can be, for example, financial supervisory authorities and financial ombudsmen.
  3. If there is a suspicion that the bank accounts to which our clients have transferred money are part of a money laundering scheme, it is possible to have these accounts blocked. Transfers to these accounts can then be reclaimed from the receiving bank.
  4. If transactions have been made to foreign accounts, the law enforcement authorities and financial institutions abroad should be informed. These often then initiate their own investigations. This, too, is aimed at securing funds in the bank accounts and subsequently repaying them to our clients.
  5. Should the perpetrators be arrested, claims of the injured parties can be asserted in court proceedings. For this purpose, we take our clients through the so-called adhesion procedure. In this way, we are able to obtain court titles for our clients against the platform operators. Often, these can then be immediately enforced against the money seized from the perpetrators.
  6. Often, a solution to the problem can be found with the service provider itself. In many cases, our lawyers can reach out-of-court settlements with the providers. Our clients then recover their entire transaction amount or a share of it.