When you immediately log on to the StrattonMarkets website, an unsettling disclaimer will be the first thing that you see. It will notify you that F1Markets Ltd is not providing trading services to new clients. If you have not read it yet and was considering investing in the markets via this broker, visit the StrattonMarkets website and check it out.
What is this disclaimer implying? Is your money safe with StrattonMarkets? Who is F1Markets Ltd? This StrattonMarkets review will answer all these questions and reveal to you why you should not trust this broker. F1Markets is StrattonMarkets’s parent company. F1Markets additionally operates Euro Prime, 24CM, Investous, and WiseTrader.
Why is StrattonMarkets prohibited from taking on new traders?
The internet has made trading in stocks, FX, and cryptocurrency so accessible to the masses, that today anyone with an internet connection can access these lucrative investment and trading options. Brokerage firms have also moved away from sorely trading on a bourse’s floor and channeled their skills to online trading.
Trading in currencies and stocks is not without its risks. Most traders will lose their capital due to poor trading strategies. Millions of traders online are also brought face to face with scam brokers that rip them off and disappear with their cash. This leaves them in dire need of wealth recovery services.
F1Markets Ltd is one of the many questionable brokerage firms that has duped and lied to its customers who had put their trust in its CySEC regulated status. The business offers CFD and forex brokerage services on its diverse websites. You can also use its platforms to trade a wide variety of forex trading pairs or purchase CFDs of stocks, precious metals, indices, and other popular commodities.
StrattonMarkets utilizes a native trading platform, lacking the flexibility and automation features that come with popular trading platforms such as MetaTrader 4. F1 Markets has a Cyprus Securities and Exchange Commission license 267/15.
The complex StrattonMarkets scam
In 2019, news websites began to talk of criminals that utilized trustworthy sites to dupe investors. They would post celebrity endorsements of their services, which were later discovered to have been faked.
Consequently, many victims lost hundreds of thousands of pounds to these scammers, which would place links on social media platforms like Facebook. The scammy advertorials would be designed to reflect the design style of reputable news media sites like the BBC. Still, the links on them would be dodgy.
In most of these cases, the celebrities were unaware that their personas were part of a crime syndicate. The Financial Conduct Authority has recently accused F1Markets Ltd’s StrattonMarkets, Investous, and Euro Prime of these crimes alongside three other Cypriot registered brokerage firms.
The FCA said that these firms were guilty of charging undisclosed trading fees. They have also fraudulently profited from the money that their customers place in their accounts by encouraging their customers to make highly leveraged trades on credit. StrattonMarkets took advantage of the power of authority, using celebrities’ images to attract investors to its platforms.
Duped by tales of success and glamour, investors were willing to place large amounts of money into the pockets of this brokerage firm. Secondly, StrattonMarkets took these monies and failed to pay its profits and capital back to investors charging them hidden fees.
The FCA has also accused the broker of falsely advising and misrepresenting the truth about the dangers of CFD trading. To this end, the UK financial trading services regulator admitted that tens of UK customers had lost over £100,000 each to these fraudsters.
The unprecedented penalties that the FCA has imposed on StrattonMarkets include;
- The banning of F1Markets Ltd’s passporting rights. Consequently, StrattonMarkets cannot provide any financial trading services to UK residents.
- Barring StrattonMarkets from closing existing positions with UK investors
- Asking the errant firms to refund their customer’s investments
- Forcing StrattonMarkets to publicly inform all UK traders of the action taken by the FCA against them
- Welcoming further CySEC action against F1Markets
Following the FCA’s censure, CySEC issued a partial suspension of the F1 Markets Ltd license. So what does this action leave StrattonMarkets?
- They are only authorized to trade with non-UK customers
- StrattonMarkets cannot advertise or promote any of the services that they offer
- They should not accept any new clients
How the StrattonMarkets scam unfolds
The public outcry against StrattonMarkets is gut-wrenching because most of its traders have lost massive amounts of cash. Their fraudulent scheme has countless variations, but it has a distinct process. You will be browsing your social media or news pages when a celebrity news article will capture your attention.
Clicking on the bait will take you to a respectable looking investor news website, which waxes lyrical about the riches hidden in CFD, stocks or crypto trading. If your interest is piqued, you will fill out the web form on the page giving the scammer your name, phone number, and email address.
Negative StrattonMarkets reviews
A StrattonMarkets’ investment manager’ will call you and encourage you to deposit a modest amount of cash for trade. They will email you account login details to give you access to their proprietary trading platform. You will initially make a profit, and the manager will encourage you to go make a bigger trade.
Should you be wary of the incessant calls and decide to cash out, they will release your profits to keep you in the trade. They will eventually ask you to add more cash to your trades. Should you choose to withdrawal your larger returns, the fraud scheme will commence, and your investment manager will cease being helpful and friendly.
They will frustrate all attempts at accountability and go mum on your correspondence. Eventually, you might be forced to let them keep your cash because they do not have a physical office in the UK that you can seek redress from.
StrattonMarkets Scam: The final word
Stay away from it. It’s a scam.
If you have lost your money to StrattonMarkets, recovery is possible. Book a free consultation with us, and we will help you chart a path to wealth recovery through our years of experience in this field.