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I will take you to court!
ASIC sues Forex CT for monkey business
In mid-summer 2020, the license of Forex CT was revoked by the Australian Securities and Investments Commission. Besides, the regulator took action against the broker and its sole director, Shlomo Yoshai, for fraudulent schemes. The broker posted a notice on the website that the company had terminated its services. The broker acknowledges that it does not hold a license from Australia’s regulator for online brokerage services anymore. The broker stopped rendering any financial services in Australia. The online platform has been withdrawn from operation and the company has been going through the procedure of closing its business in Australia. As of July 27, 2020, Forex CT had canceled all agreements with its clients. Forex CT will not accept new clients.
What is ASIC and what is its jurisdiction
ASIC is an acronym for the Australian Securities and Investments Commission that is the only serious financial watchdog in Australia. The regulator supervises all activities in the financial market, including cash operations. No wonder, if the regulator revokes a license, this is a precursor of a severe penalty. No one can tell for sure what consequences clients will have to deal with in this particular case. One thing is certain that traders are running a grave risk of losing their funds.
Why regulator can revoke license
There are two major reasons why the regulator can cancel a broker’s license:
What improper conduct of Forex CT was spotted by ASIC?
The main reason why the watchdog has launched civil penalty proceedings against the company is clients’ complaints about a scam. High-pressure sales tactics, annoying phone calls to induce clients to deposit big money with the firm, recommending wrong trading strategies to clients, making misleading forecasts are vivid examples of how the firm violated the financial law. These are the common complaints of those who traded with the broker. All of them claimed that managers were too intrusive. They promised pie in the sky in exchange for a hefty deposit.
Run away from this fraudulent broker as soon as possible! This is the most crooked broker I’ve ever dealt with for my six years in trading. I’m 100% certain that being hooked by Forex CT you will lose ALL your money. They are professional scammers!
A more serious transgression of the corporate finance law is a breach of a ban on conflicted remuneration under the Corporations Act. The Australian regulator found out that the broker’s managers were paid bonuses depending on clients’ net deposits. Besides, the law prohibits firms from misleading clients. Judging by the feedback on the Internet, traders blame the broker for disconnecting the server, non-fulfilment of orders online, and other tricks.
Keep away from this broker! From my viewpoint, they sniff out how much money you’ve got in your account. They reckon a spread size which will be used to blow up your account. No doubt, these guys are swindlers. They allow you to close 3 winning trades to lure you into a trap. Then, they will con you out of all your cash!
This is a pure fraud! I used to have an account with them. They ripped me off $3,000! They did not carry out my stop loss at a specified price. When I called them up, they did it 3 hours later at a price 150 pips lower. Incredible! I’m sure they just don’t bring your deals to the market. All you see on the platform is just a hoax. They actually trade against their clients. Beware that your orders are never executed in a real market! Keep away from them!
The regulator has filed a lawsuit not only against CEO Shlomo Yoshai over allegations of misconduct. ASIC also has imposed a ban on financial activities by Steven Marsh, an ex-manager at Forex CT.
Fortunately, Forex CT activities have been suspended. It means that another scam broker has been detected and taken to court. Please, make sure that a company holds a license and check out comments from traders before you entrust your money to a broker. A reliable broker is the key to success in the market. We do not mean to downgrade other firms and term all of them swindlers. Nevertheless, it goes without saying that trustworthy and truly professional forex brokers represent only a small minority. At the same time, there are myriads of shady companies longing for easy money.
Be cautious choosing a broker!
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