Australian Scam Brokers 2023
Trading can be a great opportunity to grow your nest egg. Putting aside some money from your salary every month and rolling it into reliable investments can help you raise funds for a college education, a new home, or retirement. However, there are many more fraudulent, unlicensed brokers than there are legitimate opportunities.
Not only do assets and investment types carry a certain amount of risk. The hazard of widespread broker scams can make choosing an investment perilous. However, you can lower your risk of listing money to a broker scam if you understand how to recognise frauds and what to do if you’ve lost money to them.
A key to trading safely in Australia is to become familiar with ASIC, the Australian Securities and Investments Commission.
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What Is ASIC?
The Australian Securities and Investments Commission is an independent organisation that is responsible for regulating companies and financial institutions. It also acts as a watchdog that protects consumers and investors in Australia.
The ASIC issues licences to brokers and other financial companies that are either located in Australia or sign up clients from Australia. They ensure that financial services comply with laws and regulations designed to protect customers. If there is an infraction or many complaints, ASIC will investigate the issue and take disciplinary action, such as licence suspension or revocation if necessary.
However, if you sign up with a broker with no license, there is little or no recourse. A regulator demands that brokers submit documentation regularly and audits the financial organisation to ensure they are operating in compliance with regulations. An unlicensed broker needs to have oversight, and therefore, may be more likely to steal your funds.
Think about it. If school kids are left alone in the classroom and the teacher never comes in, you can imagine what they would get away with. Brokers who seek to avoid getting a license in the first place are suspicious. Without proper oversight, there’s no doubt they will engage in practices that will benefit themselves, not you.
Signs of Scam Brokers
If you see any of the following, beware:
- No licence or a third-rate one
- No transparency about who runs the brokerage
- No contact information
- Offers only high-risk assets such as cryptocurrencies or forex
- Aggressive manner – always pushes clients to deposit more money
- Will only allow deposits and withdrawals in cryptocurrencies
- High fees
- A lot of complicated requirements for withdrawing money
- Won’t allow withdrawals
- Poor communication
How These Broker Reviews Can Help You
At Fundrecovery Australia we are experts at spotting potential broker scams and keeping Australians financially safe. We update this list regularly with an in-depth look at regulator warnings about specific brokers.
If you are going to sign up with a broker, check this list first. If you see the broker’s name on this list, we recommend that you stay away. Brokers have ended up on this list because reliable sources, including regulators, have raised the alarm about them. Instead, look for a regulated broker that is licensed to offer trading in Australia rather than these broker scams.
Have You Lost Money to a Scam Broker? Fundrecovery Australia Will Help!
Fundrecovery Australia is staffed by crypto trace experts who use specialised technology and methods that are designed to uncover information about crypto transactions. We consult with clients, launch a cryptocurrency investigation and create investigation reports that can help you succeed in your crypto case.
