Do not invest more money than you can afford to lose.
KROUFR, the self-regulatory organ of the Russian forex brokers has added two more forex brokers to its black list – the companies Golia-R and Your Trade Choice who have swindled their clients out of thousands of dollars.
According to the organization, it has received a large number of complaints against Golia-R, which also serves as a wealth management company. Most of the claims were made via the organization’s forum, which provides a specific a complaints form.
A check of the SMN staff revealed that the forex broker’s clients have been complaining of not being able to withdraw their funds and not being able to get in touch with the broker. A client, one Sergey Sergeevich, for example, writes that he deposited RUB 800 000 ($ 12 000) in January 2015 when the company was offering a 1% interest per week. In his words everything was fine until August the same year, when the company announced the death of its director and the termination of all withdrawals. Since then the client could not withdraw his deposit and accumulated interest.
Another client, Vadim Rashidovich, has a much similar complaint. He deposited a smaller sum, RUB 400 000, which he could not withdraw after the death of Golia-R’s owner and manager. According to the complaint, the client was told he should wait 65 days for the broker’s ownership to be transferred, but since then he has not been able neither to get in touch with the company, nor to withdraw his funds.
The other company, Trade Choice FX Limited, which operates the forex broker Your Trade Choice, is registered in the Caribbean offshore zone St. Vincent and the Grenadines. It offers trading in forex, spot metals, futures and shares. It offers a welcome bonus of 10% on the new client deposit, but no more than $2000. The leverage is up to 1:300 and the minimum deposit is $1000.
A client of the broker, Igor Vitalievich, complains to KROUFR that between November 2015 and March 2016 he lost around $150 000 from “local deals” carried out by his “trading consultant” in Your Trade Choice. The client had $15 000 left in his account, but he cannot withdraw it, because the “local deals” made by his “trading consultant” were “scalping deals” and this was against the company rules.
KROUFR was set up in 2006, is a non-profit organization that aims to develop services and regulate the relationship between Russian participants of global financial markets, forex included. It provides mediation services in case of dispute between its members and their clients. Its members include online brokers TeleTrade, FreshForex, Forex Club, and Larson&Holz.
By Russian law the brokers based in Russia have to be regulated and a member of a financial self-regulatory organ with at least 10 members in order to offer their services in Russia.