In November 2019, the respondent’s representative contacted the complainant with a proposal to trade in an upcoming IPO with any amount and make more profit than with any other company. The complainant accepted the proposal and deposited R 45 000, the equivalent of $3048. Once the money was reflected in the respondent’s bank account, the respondent and its representative were unreachable.
The complainant then started trading on his own until he started losing money. That is when he sent an email to the respondent complaining about his situation, again without any response. About a week after he began complaining, he noticed a bonus of $500 in his trading account due to the losses he incurred since inception.
Then during December 2019, the complainant became convinced that someone from the respondent had manipulated the system to prevent him from making a profit. The complainant immediately called the respondent and was informed that they were having a ‘system freezing’, which eventually saw the complainant losing his remaining capital.
The complainant unsuccessfully lodged a complaint with the respondent and then approached
this Office for assistance in respect of what he saw as a scam. The matter was referred to the respondent in accordance with the Rules on Proceedings of this Office and requested to respond to the allegations raised by the complainant.
Upon receipt of this correspondence, the respondent undertook to duly refund the complainant his original investment of R45 000. This was accepted by the complainant with the following feedback to this Office, “Thank you very much for your assistance in this matter, and I really appreciate how good your service has been so good to me. Stay blessed”.
LESSONS LEARNED:
- Forex trading is a high-risk investment that one must only undertake after serious consideration is given to the risks involved and one’s current financial situation, and whether you are in a position to possibly lose the funds invested;
- Make sure that you are dealing with a regulated forex broker who has a license issued by the FSCA;
- Be wary of anyone who promises you a forex investment with astronomical investment returns and zero risk of losing your capital. If it’s too good to be true, it normally is.
