Trading on Platforms

Trading platforms are two a penny. Providers undercut each other on conditions and outbid each other with their promises of quick profits.

Do you understand what happens with CFDs and Forex trading?

Platforms advertise about trading currencies, commodities, shares, crypto assets and gold. In reality, however, you usually do not physically purchase currencies, commodities, shares, etc., but are only betting on rising or falling prices. This constellation often centres around Contracts for Difference (CFDs). In addition, these highly speculative derivatives are often “leveraged”, and are only suitable for very experienced investors. The FMA has therefore severely restricted their distribution. CFDs are totally unsuitable for long-term investing of assets. Consumers frequently underestimate the high risk of loss! Never buy any financial product that you do not understand!

Attention! There are a lot of scammers about!

Reputable brokers or trading platforms are authorised by a European financial market supervisory authority. Check that your chosen platform has a licence granted by an EU supervisory authority! Supervised platforms are required to set up complaints management systems and must be easily accessible. Before using a platform, in any case consider whether there might be a language barrier for you.
If you choose a platform outside the EU on your own initiative, it will not be supervised and you will not enjoy the special consumer protection provided by supervisory law.

How do dubious providers operate?

Dubious platforms often look professional. To start off, they will only ask for small amounts, and then they quickly display supposedly high profits. Suddenly, however, contact is lost with the provider: first you are given reassurance, soon you are no longer able to reach anyone, and your money is lost. At this stage you have to be especially careful! Often, a short while later, other platforms, fictitious lawyers, even alleged supervisory authorities will contact you, offering to assist you in recovering your money. This is a common follow-up scam to take money from you again – don’t fall for it! Whatever you do, don’t transfer more money!
If you have invested and suspect fraud – contact the police as soon as possible! Unfortunately, the chances of getting your money back are almost always negligible.

Tell-tale warning signs include: