Investors Should Beware of XForex Offers
Investments with returns of 480% with a “continuous training”. Too good to be true? Probably believes the AMF.
The regulatory and oversight body for Quebec’s financial sector invites consumers to be vigilant against the stresses of society XForex.
In advertisements, published on several websites frequented by Quebecers XForex company encourages investors to speculate on currencies and precious metals from the site www.xforex.com.
“Not only the company promises unrealistic returns almost 480%, but it does not specify how investors can take delivery of the currency or precious metals,” says the spokesman of the AMF, Sylvain Théberge.
Such markets are complex and volatile, and are designed for investors who have the knowledge and resources to follow their evolution. Inexperienced people stand to lose a lot of money.
This is Ultimass Global Holding, located in the British Virgin Islands, which operates www.xforex.com. However, neither XForex or Ultimass Global Holding are not registered as brokers with the AMF. The British Virgin Islands are also part of the legal entities and countries collaborating with some regulators in financial matters.
“To be honest, offering XForex is similar to Ponzi schemes,” says Sylvain Théberge. In this type of scam, the investor is not repaid through earnings, but money from new investors. This ploy gives the operation a legitimate appearance while in reality no legitimate investment is made. When the company’s coffers are filled, it takes the heels … with money from everyone.
Anyway, XForex does not skimp on the words to attract investors, as evidenced by this gem found on its website: “At XForex we continually seek ways to invest in our customers. We take this a step further with the fixed bonus. Start trading with $ 2000 and receive $ 150 dollars every week for four weeks. This is to build your confidence as a trader in Forex. “
The proliferation of warnings
This type of warning is unfortunately becoming more common. Certainly, the increased vigilance of investors, but the tactics fraudsters, they have also evolved.
Ultimately, it is better not to succumb to offers too good. No investment provides exorbitant returns without risk, it is a basic rule.