In the latest edition of its consumer protection series “Let’s talk about money”, the Austrian Financial Market Authority (FMA) warns about fraudulent trading platforms. Consumers are lured in over the phone or online with promises of high returns to invest in complicated and highly speculative financial instruments such as binary options, CFDs and forex trading. After initial success, investors only suffer severe losses, and providers are no longer contactable.
“Never purchase any financial product that you do not understand, and always inform yourself about your potential contractual partner prior to entering into any business relationship!” remarked the FMA’s Executive Board members, Helmut Ettl and Eduard Müller. Reputable providers are required to hold a licence granted by a European supervisory authority. A list of the entities that are allowed to provide services in Austria can be found in the FMA’s Company Database.
Tell-tale warning signs are unsolicited phone calls, advertising featuring celebrities and TV shows, promises of high profits, initially small deposits that grow rapidly after a very short time, websites that look professional, but which do not contain a legal notice, contact details or information about the location in which the entity is incorporated or which supervisory authority it is supervised by.
90% of all the investor warnings that were published in 2021 related to fraudulent trading platforms, offering services in relation to contracts for difference (CFDs), binary options or crypto-assets.
Further information can be found at:
Contact the FMA Consumer Information team:
- (+43-1) 24959-3444
Journalists may address further enquiries to:
Ms. Annemarie Bauer