Otwostar – the company describes itself on its own homepage https://otwostarplus.com/ as a digital currency exchange. Otwostar offers its clients to invest in global encrypted assets and to communicate with global users.
If you have invested with the online broker Otwostar and are now experiencing problems with your payout, our lawyers will be happy to help you.
Otwostar – problem-free profit distribution?
Currently, there is a very large number of investment service providers such as Otwostar. This means that investing in the unpredictable financial markets has never been as easy but also as uncertain as it is now.
Especially because there are a large number of opportunities, choosing a broker can be time-consuming and challenging. Especially if you want it to meet your individual investment requirements. Have you already invested with Otwostar? Then the following points are important for you as an investor.
- Access to the world’s exchanges is becoming more convenient and affordable for investors through online investing.
- A very good place to go for investors who want to learn about share certificates, futures, binary options and cryptocurrencies is a website like this one.
- State-regulated online brokers, secure websites, fees and brokerage commissions, product options and customer reviews are just some of the criteria you would need to consider when making your irrevocable decision.
The following tips are general tips for investors – regardless of the platform in which you invest capital.
Is Otwostar credible? Identifying trustworthy financial service providers for online trading
The following thoughts should be kept in mind when you are looking for ways to invest your wealth on the internet:
- Look for an imprint on the provider’s website. If this is not the case, it means: Hands off! But also take into account that an imprint can be faked.
- In The Federal Republic of Germany, the imprint must contain an address, the contact details of an authorised representative of Otwostar and a telephone number.
- Quality seals are often used by fake shops to suggest that they are reputable. To see if a cross-reference leads to the quality seal’s website and if the shop is also mentioned there, click on the image of the seal. It is quite possible that the provider of the WWW page has merely copied the quality seal from another internet site and transferred it to his current website without the correct certification.
- It can be very useful to ask what other customers are saying about a potential provider, even if it is only on the World Wide Web.
- Financial service providers such as Otwostar must be licensed in Germany by the Federal Financial Supervisory Authority (BaFin). BaFin’s company database contains information on licensed service providers.
Does Otwostar have foreign bank accounts and require bank transfers?
Does it make sense for you to transfer funds abroad? Consider carefully what you are doing. Numerous investors have already lost funds in the process. It is conceivable that you will lose track of where your funds are going and how they are invested.
When money has been made available to a provider, it has often happened that the online broker did not invest the transferred amount of money as agreed or not at all. There have also been cases where the company simply did not exist, even though it presented itself accordingly like Otwostar.
Besides the licensed financial service providers, there are many dubious online trading websites where a similar procedure can be observed in most cases. Potential investors are contacted by employees of the respective trading website. For example, with a phone call after the consumer has entered non-binding contact data on the provider’s website.
In many cases, however, they are also contacted by mass e-mails. These advertise seemingly profitable investments. The investor is quickly assigned his own broker, who guides him through the process of setting up a customer account and making the first payments.
The investor feels well advised at first and online trading usually starts with smaller amounts. But soon higher investments are demanded – mostly to accounts abroad. Such transfers are intended to increase potential profits. Obstacles with dubious trading platforms finally arise when the investor demands a payout.
This is often continuously delayed or linked to other payments such as alleged taxes and commissions. In the past, the scammers only operated from dubious locations. They now operate from a wide range of locations including the UK (including London), the Netherlands, Canada, Spain, Dubai and more.
For many people, it is challenging to expose tricky scams. Institution often receive email orders with large order volumes that are disproportionate to the usual purchase amounts. To lure the German company, they work with immense promises of profit.
However, the considerable order volume serves solely as a means of pressure in conversations with the producer in order to demand correspondingly excessive licensing and registration costs. It is not always clear whether the addressee of this payment is also the purchaser of the goods.
Regardless of this, it can be assumed that companies that are active abroad will not have to pay local tax on deliveries to other countries in the near future. Find out whether this also applies to investments in Otwostar.
Pump & Dump: How does the fraud method work?
The term pump and dump is used to describe a situation where the market price of a share is artificially inflated by insiders. Subsequently, the same share is sold again at a loss to the other financiers. This is therefore a fraud. A manipulation that profits from the cluelessness of small investors and stock market novices.
This strategy is therefore illegal in a controlled stock market and for providers like Otwostar. The crypto market, on the other hand, is still by and large the “Wild West” as far as these tactics are concerned. Therefore, extra vigilance is essential! Pump-and-dump scams are more common there in connection with the well-known altcoins.
The pump-and-dump scam is used by fraudsters to drive up the market price of an unknown or possibly self-created currency. They achieve this by spreading false information on the WWW or on social media or by luring co-investors with unreasonable profit expectations.
So make sure that the provider Otwostar provides you with all the information you need on this topic, if applicable.
Complications with distributions – seek legal help
Consumers are often wooed by a “broker” or a call centre representative after they have registered on the alleged trading platform. The intention is to persuade the investor to increase his or her permanent investments in order to maximise profits. This is also an initially legal goal of the online broker Otwostar.
Immediately after the buyer has deposited his capital, the first profit developments may be shown on his user account. This should encourage the investor to continue investing in the financial instrument.
The platform operators, on the other hand, can use fraud software to simulate false account changes and profits, even without the consumer being aware of this.
Check that the accounts can also be authorised at Otwostar.
In reality, no trading takes place on many online trading platforms. Rather, the deposited capital is transferred by the fraudulent brokers to bank accounts outside Germany. This is not noticed by the investors at first.
The “service providers” put the payout on the back burner of the reported earnings by demanding payment from the investors of what appear to be taxes and processing costs. These scams only serve the purpose of increasing profits.
At some point, communication breaks down completely. The money invested is used up. From that moment on, the only thing left to do is to go to a lawyer to take further steps.
Are the exit alternatives questionable?
Clarify when and how much money will be paid back. Ideally, avoid long-term contracts that cannot be terminated prematurely or where you would experience large monetary losses. Only conclude long-term contracts without the possibility of early termination with providers like Otwostar whose credibility you have no doubts about.
Even if you have the option to waive or cancel a contract at any time over a certain period of time, you should be suspicious. Even if these criteria are met, you may still be vulnerable to monetary losses. Make sure you know in detail how much capital you will get back if the money deal goes wrong. The following rule applies to share transactions:
Before the end of the term, find out what options are open to you to get rid of a security.
It is often crucial to be aware of whether there is a liquid market for products such as those offered by Otwostar. It is possible to sell securities through a broker or a financial institution. All 3 methods are legitimate for placing a sell order.
The actual selling process is therefore completed via a securities exchange (e.g. Berlin, Stuttgart, Frankfurt, Tradegate or Xetra) (e.g. for penny stocks). Order supplements can be used to control the execution of the order in advance. The sale of the share certificates takes place at a time and place determined by you.
Money back from Otwostar: Increase your chances with the support of lawyers
You have invested with Otwostar, or another provider? Now there are conflicts with the repayment? Then it is advisable to stop further payments immediately. This is especially true if the broker advises additional payments to compensate for losses. Furthermore, one should try to recover the lost capital.
In doing so, aggrieved parties can seek investor protection and turn to the lawyers of our law firm. Our law firm examines civil law as well as criminal law options and possible claims for damages against the financial provider and against involved payment service providers such as banking houses.
“A private investor who loses money in online trading is certainly not an isolated case. Quite a few investors are fooled by the professional behaviour of the service providers and do not realise soon enough that they are not responsible for their losses.”
Our recommendation is therefore not to bury one’s head in the sand, but to act swiftly and actively. Because the prospect of recovering the lost money is usually greater than the aggrieved investors think. Would you like to talk to one of our lawyers about Otwostar? Then you can go directly to our contact form here.