Blacklist of scam brokers in Latin America.

Almost 50% of the investment accounts that are opened in Latin America, do so in an unregulated entity or directly scams. YouTube, Instagram, Facebook and TikTok are full of ads to invest in x or y share, become a millionaire, if I could you too, we offer you extraordinary profits, etc, etc. from unregulated entities that seek to operate with them.

Be clear: Regulated entities do not call you for advice, nor do they give you blows of operations or encourage you to deposit more.

Here we show you the list of companies and announcements of entities of this type that operate in Latin America, although their reach is global. If you find one on social networks I encourage you to report it.

List of deceptive investments in Latin America.

· Go Arbit

· OmegaPro

· Validus

· Smart Business Corp

· Xifra

· Decentra Universe

· Trade

· XLN Trade

· Fortissio

· Investby

· Capitalix, Hispamarkets/1000Extra

· Go4rex

· Tradeapexuk

· Allianzie Asesores Inversiones (entity notified by theCMF)

· Warren Bowie Smit

· MagentaCapital (entity notified by the CMF)

· LexaTrade

· Cryptodroid

A small review of the first 5:

1.Goarbit: Goarbit is a company registered in the Dominican Republic that already operates throughout Latin America, in which users invest money from which they receive a profit percentage of between 0.5% and 1.5% per day. The company works with cryptocurrencies, at the moment, with Ethereum and Bitcoin.

Users managed to trend on “retirement Friday”, since the company allows users to withdraw money every Friday.

The marketing model with which investors work is through luxurious publications with a tendency to exhibitionism. In fact, one of the strategies most used by the company itself is advertising through influencers. However, there is a high number of complaints from users and regulators who have denounced the platform as “a digital pyramid”.

2.OmegaPro: OmegaPro is a company that works under the Network Market label and is also an investment broker that, on the one hand, is not a regulated entity by any regulatory entity worldwide, on the other hand, it does not have the authorization to promote its services in many countries. In addition, it offers packages for users that include earnings for linking people, what some call “marketing networks.”

Currently, OmegaPro is trending due to an alleged hacking of its platform, which has its investors in suspense and it is presumed that everything is a strategy to cover the fall of this capture system.

3.Validus:Validus is an educational trading platform and is an investment broker. What's amazing about Validus is its impressive profit margins of 350%

Like the previous companies, Validus is an unregulated entity, its system offers rewards and benefits if you activate a network of users associated with your account, that is, it has a referral system so active that it suggests a possible pyramid system.

In addition to their lack of regulation, some of Validus' management team members are related to some pyramid scam cases in the past, so investing through them is unreliable.

4.Smart Business Corp: Smart Business Corp is actually an investment company that captures assets and clients without having any authorization and offers returns impossible to achieve in a guaranteed way.

Here you just need to enter one of the online or face-to-face seminars that they carry out every week and that you can find on YouTube or Facebook to understand how the pyramid works.

They use phrases of financial transformation, financial peace and smart challenge to cover up a system of raising money and affiliates of a usual financial pyramid.

This entity is not reliable and its multilevel marketing will take you to waste your money and time. You should avoid recommending it to your acquaintances.

5.Xifra: Grupo Xifra is in the sights of the National Banking and Securities Commission (CNBV) and the National Commission for the Protection and Defense of Users of Financial Services (Condusef) in Mexico for self-advertising as a fintech, which has uncovered the case of a fraudulent company.

Xifra Lifestyle was sold as a newly created company that invests in cryptocurrencies and also offers wellness and health products for its affiliates. In addition to these products, the company offered a compensation plan, where Xifra Lifestyle affiliates invested in Bitcoins with the promise of a return on daily investment of 0.5% to 2%, with a limit of 200%. However, the company is not regulated or in the process of validation to offer investment instruments to the public, much less to raise resources. The Condusef in Mexico asked the public not to fall into pyramid schemes and banned the operation of Xifra in Mexico, but in the rest of Latin America it operates normally.

Conclusion.

In order not to lose money when investing in the stock market, experts point out that it is key not to believe when they offer very high returns and that they are fixed, because there they are not including the risk factor, which is intrinsic to this type of assets.

“The only returns that are fixed are fixed income and these platforms offer cryptos, stocks and forex, and there are no fixed returns on those types of assets, they are variable. In addition, the returns they offer are absurd: no financial product offers returns of 1% per day or doubling silver in a year, ”said Sebastián Toro, financial expert and founder of Arena Alfa.

All financial services regulators in the world have a warning section on their page related to trading companies with suspicious activities, noting that, in general, in this type of activities those responsible and the real location of the platforms are unknown, and that fixed returns cannot be obtained, given the volatility in that market.

Always remember that you should not trust when they offer high returns or there is a referral scheme. Experts warn that these types of platforms can be pyramids, especially because they promise returns if more people enter the “business”. Referring people is the raw material of the pyramids. When interest rates rise and assets like bitcoin fall, people pull out their money and the pyramid falls.

In Colombia, for example, network marketing, or multilevel sales, are regulated under Law 1700 of 2013, which establishes that it is prohibited to do this type of activity when it comes to financial services and products or the stock market. Likewise, Decree 24 of 2016 of the Ministry of Commerce establishes that “the mere fact of linking new people to the commercial network of the multilevel activity may not give rise to economic benefit or compensation of any nature”.

AtWikiFX, concerned about your economic well-being, we will continue to inform you about these types of fraudulent schemes and companies that do so much damage to clients and trading in general.