The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to help investors be better aware of fraudulent investment schemes.
The risk of investing in the currency market is always present. However, losses should never be the result of negligence. To protect your money from fraudsters, one of the most important steps in a successful trading venture is carefully vetting your potential broker. Client education about how rogue brokers like LS Markets cheat investors and steal their money was judged vital by BrokersView. Let’s start unleashing today’s highlight, LS Markets, a dishonest broker.
A Brief Overview of LS Markets
Chinese forex and CFD broker LS Markets (https://www.lshqtz.com) is licenced in the British Virgin Islands. The business enables online trading on many financial markets, including those for currencies, stocks, energy, and metals. The broker takes great satisfaction in its keen perception of the requirement, breadth of knowledge, strong network infrastructure, and flawless enterprise management strategy.
The company hasn’t released a list of the financial products that can be traded in addition to providing a few details on the account kinds that are offered. To help customers access the markets, the broker provides both proprietary trading software and MT5, a third-party trading platform. You must register with the business in order to examine the supported payment methods because no information is publicly available about them. The business offers live chat, email, and phone support to customers all the time.
LS Markets is it governed?
No! The broker LS Markets is not licenced. The business asserts to be an operating brand of Lend Lease Global Investment (LS MARKETS PTY LTD), subject to National Futures Association authorization and Australian Securities and Investment Commission (ASIC) laws (NFA).
But that’s not accurate. Despite the broker having a matched result on the ASIC website, it showed as deregistered. Even if the broker may have previously registered with ASIC, its licence has now been withdrawn.
The broker is not an NFA member and is not subject to the regulator’s legal regulation, claims NFA.
LS Markets: Why Are They A Scam Broker?
First of all, while being aware that its licencing status has been revoked, it purports to be a regulated organization. The broker’s goals are obvious. To maintain the trust of its customers, the corporation does not wish to publicly announce the termination of its regulatory status.
Second, it flat-out lies when it offers deposit bonuses to customers of up to $25,000. Brokers who promise absurd incentives frequently have tough requirements to meet.
Additionally, it is situated offshore. Although there are always exceptions, it is standard practice for fraud brokers to register abroad to dodge rigorous regulatory scrutiny.
How Does LS Market Scam Customers?
The business requests a deposit from customers and rewards them with large bonuses. Customers are informed that the bonus sum is only usable after fulfilling specific trading requirements when they contribute funds to their accounts. Some clients claim that the broker sets the qualification standards too high. In addition, when the broker is asked to handle withdrawals, it initially offers flimsy justifications before either blocking your access to your account or keeping you waiting an eternity.
To sum up
There are almost too many both excellent and poor brokers in the forex market. When investing, you need to exercise extreme caution. Before investing your hard-earned money, always double-check your broker’s regulatory status. On a number of independent reviewers’ websites, including BrokersView, you may also verify a broker’s credit rating.