MultiBank Exchange Forex scam charges

The Forex company has received many accusations of stealing and using illicit practices to profit from its consumers. The MultiBank Fx Forex Exchange would in theory be stealing consumers’ balances.

What is the MultiBank Exchange Forex?

The Forex broker is one of the world’s largest CFD, in fact, one of the world’s largest providers of financial derivatives. It has offices in several countries around the world, which underlines the true globalization of its operations. in 2016 total expenses on transactions executed by brokers through its platforms exceeded $4.3 billion. In the following years, brokerage spending is expected to continue to increase, reaching $2 billion in capital. It has grown considerably since its construction in 2005 and now has a paid-up capital of well over $322 million. In fact, according to its reports and statistics, it now has offices on all major continents

What is Forex?

Moving a monumental proportion of money on a daily basis, Forex is recognized as the world’s largest foreign exchange market, moving more funds than the two giant stock exchanges. However, it is important not to confuse the stock market and its derivatives with Forex.

Forex was created in 1971 and does not physically exist, it is virtual.

Even if you have never thought about investing in the Forex market, it is feasible that it has already affected your story in some way, since central banks, commercial banks and companies invest in this market.

This market essentially runs 24 hours a day, from 10 pm on Sunday to 10 pm on Friday. Here are the opening and closing times of the world’s main stock exchanges

The MultiBank Exchange Forex steals money from investors

One of the consumers who reported being scammed was Rafael, he was making a 30% profit on the $25,000 he deposited, there were no problems, but from the moment he started making +40% profit the Forex broker got upset and sent him an email accusing him of being “manipulating the money market”, which is impossible.

The multi-million dollar company is scamming consumers after a significant increase in profit percentage, after the Forex brokerage firm notified Rafael that he was manipulating the market, removed his balance. MultiBank Forex Exchange withdrew 92% of his balance, the buyer tried to contact them to peacefully resolve the issue, but it did not work. Rafael, after several attempts at dialogue, took appropriate action, and reported the company to the regulators and the Forex brokerage manager.

The company will have its license revoked if the situation is not clarified and resolved. MultiBank Exchange Fx will have to claim that it did not commit the theft. The situation is in progress in the courts.

Other consumers have reported being scammed by the Forex broker. Rafael was not the only one, there are several accusations to the company. One of the victims stated:

“I do not recommend this broker at all. I had the worst experience and lost most of my capital (over 30,000 USD) as a result of 1. their platform and servers crashing and freezing most of the time, especially during peak hours. 2. lack of response from the account manager and buyer support. 3. misleading information. After 5 months of having my account with them, I have come to the conclusion that it is impossible to make profit with this broker!” 

– Mohammed B

Even with numerous accusations and complaints, the Forex broker MultiBank continues to provide its services and apply more scams.

5 Tips to Avoid Falling for Forex Scams

Escape from quick and exorbitant returns

MultiBank Exchange Forex promised its investors double the return in just 6 months. In other words, a 100% return in half a year. Savings returns, with Selic at 5.5%, less than 4% in 6 months.

And even investments in riskier exchange-traded passive funds (ETFs) have the potential to return less than 12% over the same period, net of taxes and fees, according to Insper instructor Michael Viriato’s calculations.

Be wary of referral fees from other investors.

This is a typical financial pyramid rule. The goal is to encourage new people to join the system, and for the installments invested by them to subsidize the profits of those already in the system over a longer period of time.

This consensus cannot be maintained over a long period of time, as fewer and fewer people join and the owners find ways to escape police inquiries. As a consequence, the new competitors are left without the promised money.

Don’t be fooled by the leaders and weasels who splurge on luxury goods.

Ego, once we talk about financial pyramids, is an enemy, says Rudá Pellini, director of the start-up company Wise Trust. “What is striking about these scams is that they show people who have been successful and have acquired expensive cars and world travel. This person may even be someone close to you who is trying to convince you not to miss the opportunity. Don’t fall into the trap.

Celebrities cannot lie to the investor. Unick Forex, for example, contacted former “The Buskers” Dedé Santana and vocalist Simoni to get testimonials to attract users to the system.

Investigate whether the organization or the products it sells have a track record in the marketplace.

Look for data such as the company’s CNPJ and address, data about the seller, the product offered, and the executives who continue to be responsible for the business. “Possibly, in the first inquiry, you will already find information to unmask the scheme,” says Pellini.

Trendy”, risky and unregulated investments in the territory are the goal

Cryptocurrencies, such as bitcoin, and the foreign exchange market are often targeted by financial pyramids. This is because they combine properties such as increased difficulty, high danger, and profit potential.

Thus, such schemes instigate the curiosity of investors who, out of ignorance, fall into these traps.

In addition, the investments have in common a lack of regulation in the territory. In other words, there are no mechanisms to defend investors against fraud or organizational bankruptcy.

These “investments” can even be offered by those who call themselves brokers or investment advisors. In this situation, it is possible to verify the registration of the entity and the professional with the CVM, which is essential for them to operate in the financial market.

Pellini advises constantly asking about the dangers of the application. “Mainly, fraudsters try to persuade investors with misleading guarantees, such as properties that don’t exist. Legitimate organizations are transparent about the dangers and promise tangible guarantees.”