LST-IC – The supposed financial service provider LST-IC presents itself as an online broker on its own online presence

You encounter complications with the distribution of your investment? Our lawyers can help you with claims against LST-IC.

LST-IC – Finma warns

Currently, there is an extraordinarily high number of online trading platforms such as LST-IC. As a result, investing in the volatile financial markets has never been as easy but also as risky as it is today.

Especially because there are so many options, choosing an online platform can be time-consuming and intimidating. Especially if you want it to meet your individual investment needs.

Are you thinking about investing money with LST-IC? In this case, the following points are important for you as an investor.

  • In online trading you can use a large number of order types.
  • A good place to start for investors who want to learn about stocks, futures, options and cryptocurrencies is a website like this one.
  • Access to cross-border exchanges becomes more convenient and interesting for capital investors through online investing.

The following statements are general tips for investors – regardless of the platform you invest in.

Potential dangers in online trading – also with LST-IC?

Just as the stock exchange and other financial markets are exposed to special dangers, so is online trading.

As an investor, you should therefore check LST-IC with regard to the following questions:

  • Disadvantages arising from inaccurate or unqualified trading
  • Online trading platforms that are not trustworthy
  • The risks and dangers of online security
  • Insufficient expertise about the product

Minimise risk by looking for a proven track record when choosing an investment service provider. In this context, it is equally essential that you are assured of secure money management. This is the only way you can move confidently in the Internet trading arena.

Investors who have a deft touch may very well make a living from it, and their earnings may be above average.

At least if they have the perfect tactics. One thing everyone who starts trading should be aware of: There is always the risk of losing more investments when trading on the stock exchange than was deposited into the bank account of the provider LST-IC.

LST-IC: What does the provider promise and does it explain the risks of loss?

Assess how serious LST-IC’s offer is. Is the interest rate offered to you very high? Can you get a lot of money with just a few EUR?

These offers are usually nothing more than misleading. Be sure that fraudsters are often hiding behind these tempting opportunities. As a rule, nothing at all is invested in these investment offers. Therefore, investigate how serious the offer from LST-IC is.

Scams are often implemented by tricksters in this way. Investment products that are supposed to be lucrative are advertised in prominent positions on the net. The criminals assure that they will achieve any amount of financial means. At the beginning, the investment amounts are comparatively small.

Those who register are consulted by a fictitious broker or securities broker. The victims of the scam then get access to an alleged investment software after paying the money.

Dubious offers can also be recognised by promises of returns that are significantly above the market average.

An investor’s risk of losing funds also grows in direct proportion to the expected return with LST-IC. One chance to find out about the usual market return is the business sections of newspapers or the homepage of the Deutsche Bundesbank.

You should also treat recommendations for companies with exceptional potential for growth with caution. Low costs and very low trading volumes make penny stocks, for example, extremely vulnerable to speculation and manipulation.

Protect yourself from financial losses through the Ponzi scheme

A pyramid scheme, or Ponzi scheme, is a type of financial fraud. In this, capital is pooled from new investors and subsequently used to distribute capital to the former aggrieved persons.

The organisers of Ponzi schemes usually claim that they will invest your capital and earn exorbitant profits without putting your capital at risk. Nevertheless, in many Ponzi schemes, the fraudsters do not actually invest the assets they receive.

Instead, it is used to compensate people who paid in earlier. In this way, the criminals can keep some of the wealth for themselves. So pay attention to the risk-reward ratio in all investments – including LST-IC.

Ponzi schemes need a constant inflow of new money to keep running, as they have minimal or no real profits. Many of these structures fail when it becomes difficult to attract fresh investors or when a significant number of investors drop out.

Assuming that you want to invest with a service provider like LST-IC, you should always act with prudence.

Among the clues you should watch out for are:

  • Tactics that are very difficult to spot. Keep your money out of the stock market unless you know enough about it.
  • Selling without a licence: Investment professionals and firms must be licensed or registered under federal and state securities regulations. Most Ponzi schemes involve unlicensed people or providers.
  • Deposits that are not registered with financial regulators. In most cases, Ponzi schemes are unregistered investments that are not supervised by official authorities such as Bafin.
  • Overly predictable outcomes. Over time, deposits tend to rise and fall. Any investment that consistently delivers good returns regardless of market conditions should be evaluated with a high degree of scepticism.
  • The distribution of returns is not working out? If you are unable to receive payments or find it difficult to distribute, you should be cautious. Ponzi scheme operators may try to persuade participants to stay with the promise of even higher monetary gains if they do not withdraw money.
  • Risk-free returns with little or no volatility. Every investment involves a degree of risk, and the riskier an investment is, the more likely it is to yield a high return.

Broker refuses to distribute? Act quickly & contact legal advisors

Investors are often wooed by a “broker” or call centre employee after they have set up an account on the purported online trading platform. The intention is to encourage the investor to increase their permanent investments in order to maximise profits. This is also a legitimate goal of the service provider LST-IC.

Immediately after the customer has transferred his money, the first profit developments may be presented on his account. This should encourage the investor to invest in the financial product on an ongoing basis.

However, the website operators can use fraud software to simulate manipulated account movements and profits, even without the consumer being aware of it.

Make sure that accounts can also be authorised with LST-IC.

In truth, no trading takes place on many platforms per se. Instead, the money paid is forwarded by the fraudulent brokers to bank accounts outside Germany’s borders. This is not noticed by the investors at first.

The “providers” delay the disbursement of the income shown by demanding that investors pay what appear to be taxes and commissions. These tricks only serve the purpose of increasing profits.

At some point, the contact breaks off completely. The capital paid is used up. From that moment on, the only way left is to go to the lawyer to launch further action.

Fees for online trading – find out in good time

Before investing with LST-IC, find out how much of your investment amount will be used to cover costs, fees and commissions. This is a good time to check the details provided by the service providers in detail!

Investors must be informed of all calculated fees and their impact on the profit margin of investment service providers. In addition, the costs must be presented individually.

Assuming that you demand a detailed overview of all fees, the financial service providers are obliged to provide you with this information.

For obvious reasons, an online broker such as LST-IC is usually interested in as many trading transactions as possible. Very often the costs are so high that it is difficult to make a profit. The fees can even eat up the invested assets in a short time.

Therefore, be sure to take the costs into account! The trading fees of the online broker must be publicly available. The transparency of the structure of the costs is also specified in the official requirements and regulations.

In the event of a violation, the provider’s official authorisation can be revoked.

What to do in case of losses with LST-IC?

You have invested with LST-IC or a similar provider? Now you are encountering obstacles in the payout process?

Then it is advisable to stop further payments immediately. This applies in particular if the provider demands additional payments to compensate for losses.

In addition, you should try to recover the lost capital. In this context, affected persons can seek investor protection and contact the lawyers of our law firm. We examine civil law as well as criminal law options and possible claims for damages against the service provider and against involved payment service providers such as banks.

“It is far from being an isolated case when a private investor loses his capital in online trading. Many private investors are deceived by the professional appearance of the service providers and only realise too late that they are not responsible for their losses.”

Our recommendation is therefore not to despair, but to act swiftly and energetically. Because the chance of recovering the lost money is often greater than the aggrieved investors suspect.

Would you like to talk to one of our lawyers about LST-IC? Then click here to go directly to our contact page.