Professional websites and friendly advisors say little about the seriousness of a broker. What warning signs there are before and after the first deposit and how to check approval.
Today, trading in securities, currencies or contracts for difference takes place predominantly online. This makes access to the markets easier - and makes it easier for perpetrators to set up a platform that looks deceptively similar to a real broker with little effort. An attractive website, a customer portal and a personal contact person are therefore no proof that a provider is approved and actually carries out orders.
However, there are characteristics that can be checked with a reasonable amount of effort. Some become apparent before the first payment is made, others only during the course of the business relationship.
Warning sign before deposit
- The contact comes about unsolicited – via a call, messenger message or via an advertisement with alleged recommendations from well-known personalities.
- High or certain profits are promised, and the risks of loss are hardly mentioned.
- Time pressure is created, for example with an offer that is supposedly only available for a short time.
- The imprint is missing, incomplete or only states a mailbox address in a distant state.
- Information about the supervisory authority and approval is missing or cannot be verified.
- The first deposit is set noticeably low in order to keep the inhibition threshold low.
None of these features are evidence in themselves. However, if several people come together, it is advisable to exercise caution until the provider's approval has been clarified.
Check approval: What the permit requirement means
Anyone who conducts commercial banking business or provides financial and investment services in Germany generally requires a permit - depending on the business, in particular under the Banking Act (KWG) or the Securities Institutions Act (WpIG). Providers from other countries in the European Economic Area can, under certain conditions, operate across borders based on their home license.
You can check whether a company is approved in BaFin's company database. In addition, BaFin publishes warnings about providers who are suspected of engaging in unauthorized transactions; The European supervisory authority ESMA and consumer advice centers also provide information. If an entry is missing or there is a warning, no payment should be made.
Warning sign after deposit
Many of those affected report that the collaboration was initially pleasant. Abnormalities often only become apparent gradually:
- A personal “account manager” often contacts you and urges you to increase the capital invested.
- The account quickly shows high profits that cannot be independently verified.
- Payments should go to changing accounts of strangers or companies or be made in crypto assets.
- You will be asked to install remote maintenance software, supposedly to support operation.
- Bonuses that are credited without being asked are later given as a reason why a payout is not possible.
- Withdrawal requests are delayed or made dependent on additional payments for fees, taxes or audits.
Legal classification
Anyone who conducts business requiring authorization without the necessary authorization is acting unlawfully; This may also be a criminal offense. BaFin can prohibit such transactions and order their settlement. However, it acts in the public interest and does not enforce the claims of individual investors.
Claims for damages under civil law can be considered for injured parties, for example from Section 823 Paragraph 2 of the German Civil Code in conjunction with a protective law such as Section 263 of the Criminal Code (fraud) or from Section 826 of the German Civil Code due to intentional immoral damage. The difficulty usually lies not in the justification of the claim, but in its enforcement: those responsible appear under false names, are often based abroad, and funds are quickly forwarded. Depending on the payment method, it can also be checked whether there are claims against other parties involved. A reliable statement on this is only possible in individual cases.
Conclusion
Whether an online broker is working reputably cannot be determined from its external appearance. What is more meaningful is approval, comprehensible company information and how payment requests are handled. A quick research before making the first payment can save a lot of trouble. If you only recognize the warning signs later, you have nothing to blame yourself for - the approach is designed to generate trust. This article provides general information and does not replace individual legal advice.
Frequently asked questions
The BaFin company database, in which approved companies are listed, offers an initial clue. In addition, the warning messages from BaFin should be checked. Make sure that the name, internet address and contact details of the provider match the entry.
A registered office abroad is not in itself inadmissible. However, anyone who specifically targets customers in Germany generally requires appropriate permission. In addition, experience has shown that enforcing claims against providers in distant countries is significantly more difficult.
Yes, if several warning signs coincide. The low initial deposit is often used to build trust and reach higher amounts later. It makes sense not to make any further payments, to secure documents and to check the provider's approval.
