An Investor Fall into A Profit Trap Operated by PrimoTrade

This is a common tactic among fraudulent brokers, with getting victims to send them money by showing a fake trading platform with big profits. Brokersview recently learned that an investor has fallen into such an investment scam operated by the broker PrimoTrade, where he could not withdraw his funds and received no reaction to his emails and phone calls.

Investor was scammed to buy more Bitcoins

According to the investor, he opened account with PrimoTrade after a phone contact and made a small deposit via bank transfer. Then the broker instructed him to create an account with Binance and showed him how to deposit money to buy bitcoins and from there transfer to a given wallet.

After that, the broker came up with an proposal that as JPMorgan&Chase was in desparate need of Bitcoin but were not able to buy those themselves, the investor could earn money by buying Bitcoin and transferring to them and he would get a 40% profit almost immediately. What’s more, a person calling himself Michael Stevens was impersonating the exclusive representative of JPMorgan &Chase with PrimoTrade. So the investor believed and helped them and then did received profit.

In the mean time a second offer for the same transaction with even bigger profit (50 percent) was issued. However, after he followed the instructions and wanted to withdraw the money, his withdrawal showed up with a pending status and nothing happened.

PrimoTrade was alerted by FCA

PrimoTrade says to be owned by an offshore company – Malarkey Consulting LTD, which we are told is based and incorporated in the Commonwealth of Dominica, an offshore paradise for shady brokers and outright scammers to register their shell companies.

And we noted that the broker lists no certifications or governmental registrations on its website. All good brokers are not only registered but will provide their credentials and help you verify they are registered and regulated.

Furthermore, on February 17 2021, the UK’s Financial Conduct Authority (FCA) added PrimoTrade to its alert list, warning that this firm may be providing financial services or products in the UK without our authorisation. Therefore, we can definitely say that PrimoTrade is a scam broker.

(Screenshot from FCA)

Although the regulation on the forex brokers are becoming increasingly tightened worldwide, there are many unscrupulous brokers who should not be in business. While it's necessary to know how to deal with scam brokers, spotting them from the beginning is even more important.

Brokersview suggests investors to keep vigilant when choosing forex brokers. When looking for a licensed broker, it's important to verify its authenticity and business status.