Stop fraudulent Online Brokers

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Since many years, online brokers offer CFDs / Binary Options/ Forex and now ICOs to retail clients in Europe and all over the world. In Europe most of these brokers are registrated[1] in Cyprus and can offer their financial services legally all over Europe according to MIFID II. Many of these online brokers (who belong to offshore companies) are not protecting their clients, some of them are literally stealing money by purpose, others do not inform about the risks, so that clients loose all their invested money. In Europe there are then thousands of victims from different brokers with different names. Many different brokerage domains belong to the same companies which also changes names when there is too much damage because of victims who lost their money. It is almost impossible to get the money back, because the companies behind the structure are at offshore islands like Marshall Islands, Mauritius ore countries like Belize. Mostly the real owners are not visible. We are concerned, that the risks for investors' protection are not sufficiently controlled and reduced. There is a lot of critic about the Cyprus Securities and Exchange commission because of lack of supervision. The European Securities and Markets Authority is concerned about the risks for small investors, too. At the moment there is also a rapid growth in ICOs. Most investors do not know about the high risks they are taking when investing in ICOs. The online brokers are advertising very aggressive on social media and on the internet. Many of these brokers conduct their activities without complying with relevant EU applicable legislation. Investors can lose all of their invested capital. Depending on how they are structured, these ICOs may fall outside of the scope of EU laws and regulations. Most of these brokers register Coins or Tokens on offshore Islands ore countries like Belize. Money laundering and Fraud are easy because there is a lack of supervising at the moment. We ask ESMA and national Authorities to act and stop the online brokers stealing money from clients. Also we ask ESMA to supervise the Cyprus Securities and Exchange Commission more strictly.  make it easier for victims to complain and supervise the way clients' complaints are handled according to European law. There should be also a stricter regulation over online brokers who are responsible for losses. They should be investigated and directly be suspended from the European market as long as the investigation goes on. Aggressive Advertising as well as Cold Calls should be forbidden. We ask the European Union for more protection for small investors and more supervising and stricter rules as well as more power for national financial authorities like BaFin, AFM etc. to take steps to stop fraud.





[1] registered or regulated