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Maya Mandzikasvili

9 January 2019

Forex Announcements

BaFIN Flags Top Algo Trade as Forex Scam

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January 09, 2019 | AtoZ Markets - German Federal Financial Supervision Authority (BaFin), flagged another trading company as suspicious. This time it is Top Algo Trade, which, according to BaFin is operating in Germany without a license.

BaFin Crusade Against Trading Fraudsters Continues

The German financial regulator continues its fight against fake brokers and illegal forex exchanges. According to BaFin, the number of fraudsters has been growing in recent years. In response to the fraudulent activity of certain trading companies, last year the Federal Financial Supervision Authority issued a three-page guide to help investors identify fraudsters. According to the financial watchdog’s statement published on Tuesday, Top Algo Trade does not have permission to conduct banking activities or provide financial services in Germany in accordance with the Banking Act.

New Scammers Tactic Was Different from Previous Fraudsters

As BaFin experts stated earlier, one of the tactics of fraudsters to attract users is advertising an illegal operation as a reputable brand. In the Top Algo Trade case, suspected fraudsters used a different strategy, promising unprecedented profits. As the company's official page claims, Top Algo Trade is "100% profitable robot for trading in the Forex market". Financial regulator states that trading flagged company not only operates in Germany without proper authority.

BaFin officials added, that whenever the aforementioned suspicious company begins to promise "100%" profitability or high profits, the red flags jump up. Further, in their official note,  BaFin explained how Top Algo Trade attracts unsuspecting investors. The company communicates with the German residents by e-mail, and "lures" them on their website top-algo-trade.com. In addition, the organization does not indicate its legal form or legal address.

The website Top Algo Trade, as stated earlier, speculates on instant and impressive profits and according to them "combines outstanding profitability with 3 of the most powerful forex trading strategies with the best indicators." The company appeals to the automation of the entire forex trading analysis process and advises users to "relax and watch their income grow."

BaFin is not alone in its fight against financial scammers. Today , the Cyprus Securities and Exchange Commission (CySEC), announced a warning against two sites owned by forex firms - Capital Swiss FX and EXPERT FX TRADE. In the official note the Cypriot financial regulator explained that the aforementioned websites had stolen the license number and content from the website of the Cyprus investment company BDSwiss Holding Plc, a legal entity in Cyprus.

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