TradeoFX – The online broker claims to be a financial service provider on its homepage, which is active in the areas of Forex, metals, crypto, indices and shares. Accordingly, investors can expect high profits. If you have invested with TradeoFX and there are problems with the payout, the lawyers of the Herfurtner law firm are available to help you in word and deed.

TradeoFX – BaFin warns

Currently, there is a very high number of online trading platforms such as TradeoFX. Thus, it has never been as easy but also risky as today to invest in the volatile financial markets. Especially because there are countless opportunities, choosing a provider can be time-consuming and daunting. Especially if it is to suit your individual investment needs. Have you already invested with TradeoFX? In this case, the following aspects are significant for you as an investor.

  • Officially licensed brokers on the internet, reputable provider websites, fees and bonuses, product options and customer reviews are just exemplary features you would need to plan for when making your final decision.
  • When trading online, you can use a variety of order types.
  • An ideal place for investors to inquire about share certificates, futures, binary options and cryptocurrency is an online presence like this one.
  • Access to cross-border financial markets is made easier and more interesting for investors by investing online.

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

Are providers like TradeoFX credible?

Money investors have a wide range of investment opportunities at their disposal, with reliable and questionable providers competing for their favour. There are many indicators that a service as well as a product does not inspire confidence and it is central to have a look. Here’s what to look for when investing your hard-earned money.

Banking, financial services and insurance companies such as TradeoFX are only allowed to operate in the FRG with a state licence. The companies have obtained a licence, but this does not mean that the services they sell are of excellent quality. In the event that a prospectus or information sheet approved by the German financial supervisory authority has been published beforehand, share certificates and investments can also be made accessible to the general public.

BaFin simply ensures that prospectuses are complete, catchy and coherent. TradeoFX’s prospectus or information sheet is not required in every context. Before you invest, you should consider your long-term objectives and whether you have the financial means to achieve them. Do not rush the process. Before putting your money into an investment, take time to review the pros and cons. Do not make a choice instantly, even if you have consulted with others.

Promises of profit

Investigate how confidence-inspiring TradeoFX’s offer is. Is the interest rate you have been offered exceptionally high? Can you make a lot of money with a few EUR? These special offers are mostly nothing more than a deception. Be aware that lawbreakers often hide behind these tempting options. As a rule, nothing at all is invested in these investment offers. Therefore, assess how trustworthy the TradeoFX offer is.

Scams are usually carried out by tricksters in a related manner. Investment products that are supposedly profitable are announced in prominent positions on the net. The perpetrators postulate that they will get lots of capital. At the beginning, the investment amounts are comparatively marginal. Those who register are consulted by a fictitious online broker or securities broker.

The fraud victims then get access to an alleged investment software after paying the money. Dubious offers can also be identified by promises of returns that are conspicuously above the market average. An investor’s risk of losing investments also increases at TradeoFX in direct proportion to the expected profit margin. One way to find out about average market returns is to consult the business sections of newspapers or the website of the Deutsche Bundesbank.

You should also treat tips for companies with exceptional potential for growth with caution. Low prices and low trading volumes make penny stocks, for example, exceptionally susceptible to speculation and manipulation.

What are the dangers of the grey capital market?

Only a small part of the financial market participants such as TradeoFX are subject to official regulation and supervision. In the grey capital market, providers operate who do not need the approval of the Federal Financial Supervisory Authority and only have to fulfil a few regulatory conditions. Only invest in the grey capital market if you are sure of the provider’s creditworthiness and know it as a company.

As said, the Federal Financial Supervisory Authority has no control over these financial service providers. The grey capital market holds a variety of possibilities. There are:

  • Loans with subordination clauses
  • Direct investments such as in timber, precious metals or other commodities
  • Corporate investments
  • Ordinary bonds
  • Crowdfunding offers

One thing is certain: it is unclear what the end result will be for the investor.

Is it not easy for you to understand the financial product being offered? In this case, you should gather as much information as you can before making a decision. Do not invest in anything you do not fully understand! When it comes to investments, the more know-how you need, the more complex the financial instrument. It is also not recommended to focus all your money on one product. Spread your risk beyond TradeoFX.

To avoid being influenced incorrectly, always focus on the product itself and not on the name or presentation of the financial service.

Online platforms: Learn to recognise trustworthy providers

On questionable online trading platforms, there is an abundance of capital goods that are aggressively advertised in forums and social media to lure investors. In addition, “network marketing” is used to solicit new investors. In the advertising, the promise of immediate profitability is emphasised above all. In order to start investing, a potential investor must first create an account with the online trading platform – such as TradeoFX.

Then the apparent online brokers contact the investor via a call centre and try to convince him to invest large sums of money. The optimistic attitude of the money investors towards cybertrading is partly strengthened by the desire for future profits. Clients are more willing to invest in the future if they see exactly the kind of results they want.

At this point, investors are being hoodwinked by a corrupted trading algorithm as to the true trend in stock market data and prices. TradeoFX does not necessarily belong to this category. The perpetrators use their own unilaterally defined price values when calculating returns. As a result, the provider has all the control over whether a profit is made or not. Until the alleged returns are paid, this deception will continue.

If the investor wishes to receive the distribution, the clients suddenly no longer have access to their accounts and the personal contacts associated with them. The majority of investors lose all their money invested in this fraudulent trade, forcing them to seek legal advice.

Recovery Scam: Absolute attention is required!

Anyone who has ever lost assets to a fraudulent investment platform knows how devastating it can be. That alone is bad enough. But in addition, the criminals behind the bogus scheme contact you by email or phone call within a very short time. This time, however, they do not pretend to be financial advisors from TradeoFX. Rather, they guarantee to provide assistance in recovering the lost money in exchange for an upfront payment.

Many rip-off artists even seem to have been hired or commissioned by reputable companies such as a financial regulator. After stealing your personal information, the scammers usually pose as good Samaritans. They promise to help you recover the stolen money. Even if you have invested money with a service provider like TradeoFX, your data may be stolen. Anyone who has lost an immense amount of money is usually desperate.

Criminals exploit the desperation of individuals by posing as “recovery” companies. They offer their services under the pretence of helping them to recover their funds. This means they dubiously guarantee that they will get back the lost capital.

You want to get your money back from TradeoFX? Our lawyers can help

You have invested with TradeoFX, or a similar service provider? Now you are encountering difficulties with the payout? Then it is advisable to stop further payments immediately. This is especially true if the provider recommends additional payments to compensate for losses. In addition, you should try to recover the lost capital. Here, aggrieved private investors can seek investor protection and turn to the lawyers of our law firm.

We examine both civil and criminal law options as well as possible claims for damages against the financial provider and against involved payment service providers such as financial institutions.

“It is far from being an isolated case when a private investor loses his capital in the course of online trading. Quite a few investors are fooled by the professional appearance of the service providers and do not register in time that they are not responsible for their losses.”

Our recommendation is therefore not to resign, but to act quickly and actively. Because the chance of recovering the lost capital is usually greater than the aggrieved investors assume. Would you like to talk to one of our lawyers about TradeoFX? Then you can go straight to our contact page here.