Brokers who are no longer with us
Stability in global financial markets, as well as macroeconomic stability in most post-Soviet countries, creates a huge impetus for business development.
Every month more and more new companies enter the brokerage financial services market, and leading brokers are constantly improving their trading conditions.
However, a quiet and calm environment in the field of brokerage services only reduces the vigilance of traders, and as a result, newcomers carry their deposits with the company without doubting their solvency.
In this article, we wanted to remind you of the largest broker bankruptcies that happened just a few years ago, which will allow you not to step on the same rake as happened to thousands of traders just recently.
2014 and 2015 became especially significant for all forex traders and left a huge imprint on their hearts.
It was during this period, when the ruble and the hryvnia began their active peak, that many scam companies simply pulled the plug and made a huge reputational blow to the entire Forex industry.
Lack of regulation, lack of a safety net in case of unforeseen situations, as well as banal theft - all this was revealed at one moment and broke out, which led to multi-million losses of traders' deposits throughout the post-Soviet space.
Therefore, we invite you to recall the very top five leaders who denigrated the Forex industry, as well as a brief chronology of development around each of the brokerage companies.
1) RVD Markets
RVD Markets was an average broker that was in great demand among beginners because it allowed them to receive a no-deposit bonus for communicating on forum sites.
Many shares, favorable trading conditions - everything pointed to further growth and development. However, in 2014, the Swiss authorities decided to decouple the Swiss franc from the euro exchange rate and literally in a matter of seconds the charts collapsed by two thousand points.
It’s trivial that I didn’t have time to forcefully close traders’ transactions, many of them went into the negative zone. Thus, an unexpected surge in the market led to multi-million dollar losses for the company, which was introducing transactions to the interbank market with leverage.
Ultimately, a company representative filed for bankruptcy, but most of the traders' deposits were sent to traders, without taking into account profits, of course.
2) Pantheon Finance
Pantheon was one of the largest platforms connecting traders and investors; moreover, its PAMM system was one of the best among many brokers.
However, problems in the company began after one of the main managers, who was actively responsible for client deposits, became interested in binary options trading.
In the hope of winning back, he used the money of the company's clients, but having fallen into the hands of scammers, he himself was deceived.
In order to cover his tracks, he and his team corrupted customer databases, which led to traders being unable to log into their personal accounts, and some time later the company declared bankruptcy.
Later it turned out that their PAMM system was nothing more than a screen, and the organization itself worked on the principle of a pyramid.
3) Forex Trend
The Forex Trend company was very closely connected with Pantheon Finance, since it was they who provided their Pamm platform, as well as technical support.
However, the disruption of the Pantheon hit the Forex Trend very hard, and as a result, an active outflow of clients and deposits from this campaign began. The most interesting thing is that Forex Trend created a fictitious rating of managers and, just like the Pantheon, built a pyramidal structure.
When the panic began, there was simply no money to support the pyramid, so they simply closed and disappeared with millions of client funds.
However, the largest clients were still a little lucky, since some brokers, having caught the wave of the collapse, allowed their deposit to be restored in the form of a bonus if they replenished exactly the same amount that was lost in the Forex Trend.
4) MMSIS
MMSIS conducted one of the most aggressive advertising campaigns; moreover, calls to invest in their index and twenty managers were even on the largest TV channels in Ukraine and Russia.
The first bell that would have alerted investors to the pyramid was WebMoney’s refusal to cooperate with this company, as well as the blocking of accounts.
However, clients did not pay attention to this event, after which, due to many complaints, MMSIS accounts in the Money Online service were closed.
Ultimately, the company did not withdraw client funds for several months, while cynically continuing to advertise and attract new clients.
When it became clear to everyone that the company turned out to be fraudulent, the chief director got in touch and declared bankruptcy. Along with MMSIS, the brokerage company Mil Trade, which was recently purchased by MMSIS, closed on the same day.
In conclusion, I would like to note that the listed companies were considered industry leaders and had an extremely positive reputation.
However, the only thing that united them in a chain and was a harbinger of their scam was too aggressive advertising on all sites and media.