Onotex – Review of Trading Broker
The website of Onotex advertises professional financial services. Modern market analyses and good risk management are supposed to benefit the users of the platform. Returns are thus achievable through investments on the global financial markets.
Irrespective of this, personal data must be disclosed before using the platform. Likewise, an initial deposit, which may not be less than €250. In order to be able to use all alleged features without restrictions, a payment of 10,000 € is necessary.
Onotex web presence
The service provider Onotex presents itself online with an English-language website at the URL https://www.onotex.com/.
In the Federal Republic of Germany, according to §5 of the German Telemedia Act (TMG), there are general obligations to provide information and mandatory details for the imprint. As a result, this obligation to “identify the provider” applies to all commercially operated websites.
This is because this data is intended to inform visitors to a website who they are dealing with. In addition, the address of the website owner plays a role in the event that 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 foreign providers who carry out their business activities in Germany. Onotex did not have an imprint on its website in March 2022.
According to §6 of the German Media State Treaty (MDStV), the name of the person responsible for the content of the online presence must be mentioned in the imprint. Often this is a member of the provider’s management board. Disclosing the names of the persons responsible is not only necessary, but also a sign of transparency.
No data on responsible persons could be found on the Onotex website in March 2022.
Background to the domain
Various companies use their many years of experience to convey authenticity. However, such information is often contradicted by the date on which the domain was registered. Accordingly, it is necessary to investigate who the domain holder is and when the domain was registered.
Onotex does not give a concrete year of foundation. Our lawyers have determined the data for the provider Onotex on 16.03.2022 with this result:
- Domain Name: onotex.com
- Registry Domain ID: 2653380920_DOMAIN_COM-VRSN
- Registrar WHOIS Server: whois.registrar.eu
- Registrar URL: http://www.registrar.eu
- Creation Date: 2021-11-08T08:31:21Z
- Registrar Abuse Contact Email: email@example.com
- Registrar Abuse Contact Phone: +31.104482297
Operator and Trademark
The name of the website or the trading platform or the offer is not necessarily congruent with the operating company. In the past, it was not uncommon for providers to be present on the market at the same time with different trademarks.
It is also a common practice of certain providers to remove the websites of compromised trademarks and to return to the market some time later using a new trademark. Therefore, when researching news and facts about a provider, it is a good idea to take into account not only the trademark but also the operating company in general.
The respective information can be found either in the imprint or often also in the footer of a website. On the Onotex website, no distinction could be made between a trademark and an operating company at the time of observation.
Onotex contact details
At the time of writing, the following statements could be found on the Onotex website:
- Postal address of Onotex: ABAX Inc. P.O. Box 1510, Beachmont Kingstown St. Vincent and the Grenadines
- E-mail address of Onotex: firstname.lastname@example.org
- Onotex telephone number: +44 122 498 0044
The existence of a valid authorisation from a European state financial supervisory authority can be an important criterion for determining whether a company is a trustworthy service provider. This is because a company has to make a considerable financial effort to obtain a licence.
However, it does not necessarily have to be an investment fraud if a broker omits information on its authorisation or on its regulatory status. The following financial regulators, among others, are responsible for issuing authorisations and supervising financial service providers such as Onotex:
- Federal Financial Supervisory Authority (BaFin, Germany)
- Swiss Financial Market Supervisory Authority (FINMA, Switzerland)
- Austrian Financial Market Authority (FMA)
- Finansinspektionen (FI, Sweden)
There was no evidence of regulatory authorisation on Onotex’s website in March 2022. Private investors can discuss what this issue entails in an exchange with a lawyer at our law firm.
Alerts from financial regulators on Onotex
At the time of writing, no warnings have yet been issued by official authorities.
Before you start trading with Onotex and others – online trading tips
Trading on an internet platform like Onotex is the extension of traditional trading in financial instruments to the web. Here, as there, financiers act with the aim of making surpluses by buying and selling assets. Trading is no longer limited to shares. De facto, the following options are also available to customers, for example:
Online trading is carried out via interfaces such as online brokers (e.g. Onotex) or banks, which provide their clients with a professional trading application. In particular, the far-reaching technological achievements of recent years have made online trading time-saving and uncomplicated, and consequently as recognised as it is popular.
The advantages of online trading
Digitalisation is also changing the world of finance extraordinarily, especially when it comes to trading like Onotex. Because of the technological possibilities, trading has gained massively in efficiency.
Whereas in the past investors and traders had to conclude their orders by telephone call, fax or post, today this can be done at the click of a mouse and at a fraction of the cost.
Aspects such as length and type of trade, pricing and quantities or account details can nowadays be clarified without a personal conversation between a broker like Onotex and its client. In this respect, the possibility of online trading has brought about various conveniences:
- Profits can also be generated with a low stake.
- The trading platform executes the desired orders, all you need is an internet connection.
- Numerous tools can be used automatically and directly.
- The selection of tradable financial instruments is broader and deeper.
- The speed with which trading transactions can be processed has increased noticeably.
- The costs of the transaction have dropped significantly, since individual telephone support is no longer necessary.
- Online traders can access numerous tools and use various indicators.
- The risk of losses due to gaps is reduced.
- Learning materials for online trading, knowledge pools, analyses or trading courses are offered as standard in many places.
But online trading does not only bring advantages in terms of the simple use of the platform. Above all, the investor enjoys significantly more comfort through analysis options, indicators and the many different tools.
The times when you had to draw your own chart diagrams or make your own calculations are over. Online trading platforms now offer their customers a wide variety of order types that online traders can execute independently with a day trading provider of their choice.
Crypto trading: Investment alternative for risk-averse capital investors?
But it is not only trading as such that has been significantly shaped by digitalisation. Because the unstoppable technologisation has provided online traders with a new field of action: trading with digital assets. The best-known cryptocurrencies include Bitcoin and Ethereum.
Bitcoin was the very first cryptocurrency, which is why all other digital currencies are referred to as “alt-coins”, i.e. alternative coins. Today, there are many tradable crypto assets and the landscape is extremely volatile. As a result, fresh coins are constantly coming onto the market and many disappear just as quickly as they were released.
For online traders, this entails opportunities as well as risks, which are, however, noticeably amplified compared to conventional investments due to the constant ups and downs. In a way, newly issued cryptocurrencies are like a game of chance at the roulette table for investors.
With a little luck, the stake can be multiplied significantly. However, the possibility of losing the entire capital is extraordinarily high. Therefore, it might be a better decision for cautious traders to focus on the top 10 crypto stocks that have been traded for a long time and have a comparatively large market capitalisation.
Next Generation Crypto: Alternatives to Bitcoin and Ethereum gain in attractiveness
Apart from Bitcoin and Ethereum, the Binance Coin, Solana, Cardano or Ripple should be mentioned in this context. Cardano and Solana in particular can be considered more modern and forward-looking compared to Bitcoin and Ethereum.
While the former are criticised for their energy-intensive “proof of work” mechanism, the latter are based on the less energy-intensive “proof of stake” mechanism. On top of that, the blockchain-based projects Cardano and Solana enable the use of so-called smart contracts.
Other projects are also emerging in the respective ecosystems, such as Solanart, a marketplace for so-called “non-fungible tokens”, or NFTs for short. These can be used in decentralised finance, for example. There, they help to implement security mechanisms that ensure the uniqueness of transactions and the correctness of each submitted order.
Ultimately, investors will find an extremely wide range of cryptocurrencies to invest in. However, crypto trading is recommended mainly for investors who are extremely risk-averse. In addition, the following also applies to crypto trading: be vigilant when choosing a provider.
Unfortunately, there are many documented cases of fraud and cybercrime in which crypto exchanges have played a leading role.
The weaknesses of online trading
Not all that glitters is gold, and this also applies to online trading and the offers of trading brokers (such as Onotex). Consequently, apart from the advantages, a number of disadvantages are also apparent, which inclined private investors should integrate into their considerations:
- Investors should already be well versed in trading and build on resilient strategies.
- Investors should keep a constant eye on price trends.
- The existence of fraudulent trading portals has led to great risks of loss.
- If wrong decisions are made, high losses can be expected.
- Compared to conventional trading, it is rather hectic.
Speculative day trading in particular is not suitable for investors who are dealing with the subject of trading for the first time. This is because the danger of not correctly assessing the development of prices is immense, and due to the time pressure it is difficult to make corrections.
Accordingly, this form of trading tends to be worthwhile for highly experienced or very risk-affine private investors. If you belong to this group of people, day trading is an option for achieving quick results. Furthermore, one benefits, for example, from the elimination of fees for holding positions overnight.
Because such costs must also be included in the holistic examination of an investment. Moreover, one literally saves oneself a rude awakening in the morning, in case there were immediate and violent price changes. Such “gaps” arise quickly due to unfavourable reports about a company.
On the other hand, one quickly sees successes if one can report a profit at the end of a trading day. It is also important for day traders to compare the trading fees of the individual brokers. Here it can be worthwhile to decide on a lump sum in the form of a fixed rate.
This pays off especially if you trade at a high frequency and individually invoiced order fees would noticeably reduce your profit.
In order not to unnecessarily increase the risks and dangers of online trading, you should question which provider you want to trade with on the markets. From the experience of our law firm, some questions have emerged which help to identify possible risks. With reference to the example of Onotex, these would be as follows:
- Does Onotex guarantee unusually high profits and hide or downplay the risks?
- Is there an imprint on the Onotex website and can credible information about the provider’s place of business be found?
- Are there any official warnings about Onotex?
- Is Onotex regulated by a European financial supervisory authority and is the provider subject to state supervision?
- What experiences have other investors already had with Onotex, what kind of opinion is expressed in forums?
- Did the contact with Onotex come about as a result of an unsolicited telephone call?
- Are there any warnings from lawyers or law firms who support clients who have suffered losses in connection with Onotex?
What to do in case of losses?
If you suspect that you have been defrauded in trading, it is advisable to stop additional payments immediately. This applies in particular if the provider demands additional payments to compensate for losses. In addition, one should try to recover the lost capital.
In this regard, 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 service provider and against involved payment service providers such as banks.
“One can by no means speak of an isolated case if a private investor loses his capital in the course of online trading. Numerous investors let themselves be misled by the professional appearance of the financial providers and only realise too late that they are not responsible for their losses.”
Our recommendation is therefore not to despair, but to react promptly 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 Onotex? Then click here to go directly to our contact area.