OpenTrading: Unveiling the Risks and Red Flags of Unregulated Broker

OpenTrading presents itself as a reliable broker. However, a closer examination raises concerns about its lack of credible regulation and transparency. With questionable claims and insufficient client support, it exhibits characteristics often associated with scam brokers. Investors are urged to remain cautious and prioritize thorough research before engaging with such firms.

Is OpenTrading Regulated?

OpenTrading claims to be regulated by Peru's Superintendence of Banking and Insurance (SBS) and Mexico's National Banking and Securities Commission (CNBV). However, none of these authorities regulates forex brokers. In addition, our investigation found no matching record to Open T Group S.A de C.V. in CNBV’s database, which indicates the company’s false regulatory claim.

Please also note that Peru and Mexico do not have dedicated forex regulators. Legitimate oversight comes from international authorities like the FCA, which OpenTrading lacks.

How Do Scam Brokers Operate?

Scam brokers use deceptive practices to manipulate and exploit unsuspecting investors. They often advertise unrealistic profits, guaranteeing high returns with little to no risk. These firms typically lack proper regulation and operate in jurisdictions with weak oversight, making it difficult for investors to recover funds.

They may create professional-looking websites with false claims about licenses, partnerships, and years of experience. Often, scam brokers pressure clients into making deposits quickly, offering enticing bonuses that come with hidden terms. Once funds are deposited, withdrawal requests are ignored, delayed, or outright denied.

Some fraudulent brokers manipulate trading platforms, showing fake profits to encourage further investments while making actual withdrawals impossible. They may also vanish suddenly, leaving no trace for clients to pursue legal action.

To protect yourself, always verify a broker's regulatory status, check client reviews, and avoid sharing personal or financial details with unverified platforms. Awareness is the first defense against scams.

Bottom Line

Investors should avoid dealing with OpenTrading due to its lack of credible regulation and transparency. BrokersView labeled the company as a Scam back in 2022 due to its unregulated operations as a forex broker.

BrokersView plays a vital role in exposing such brokers, helping investors make informed decisions, and safeguarding their funds. If you've fallen victim to financial scams or faced potential fraudulent practices or misconduct at your brokers, reach out to us through Submit a Complaint. The BrokersView team is dedicated to exposing scams, raising investor awareness, and assisting with dispute resolution between traders and brokers free of charge.