Financial miseries resulting from forex scams are always painful. However, necessary precautions can help you stay protected against scammers like Leeds Capital. This piece discusses how the broker plays around with investors and makes them lose their hard-earned money.
Leeds Capital - Overview
Leeds Capital is an online forex and CFD broker founded in 2021. The company claims to have its headquarters in Australia. With an in-house customized trading platform, the company offers trading services in forex, commodities and cryptocurrencies. While no information on the supported account types is available, the company hasn't listed its pricing structure either. The broker accepts payments via bank transfers and cryptocurrencies. Clients looking to enhance their learning exposure might be disappointed due to the unavailability of educational resources at Leeds Capital. Although the broker hasn't provided a telephone number to contact, clients can reach the company via email or live chat.
Is Leeds Capital Regulated?
According to their website, Leeds Capital is owned and controlled by Leeds Capital Holdings Limited, which holds a Financial Services Licence (AFSL No. 440193) from the Australian Securities and Investments Commission (ASIC). The licence number is matched with the concerned regulators' database and found to be valid. However, the company does not have permission to sell foreign exchange (FX) services or products to retail clients as per the information available on the ASIC's website.
Since the broker is new to the industry, there aren't too many reviews posted on BrokersView and other websites. However, the ones we found were awful. Clients denounced the company for multiple issues, but withdrawal problems seemed to be the most prevalent. According to clients, the broker doesn't process withdrawal requests even after fulfilling all the prerequisites, including account verification.
Why do we believe Leeds Capital is A Scam Broker?
The foremost reason is the absence of a regulatory check by any regulatory authority. Additionally, the broker hasn't listed its official address or telephone number on its website, which suggests that it wants to conceal its identity. Moreover, the company doesn't support any third-party trading platform, yet another red flag raising concerns over the broker's transparency.
What's more, the company's website's poor design tells quite a lot about the broker's weak competitiveness. For example, there is no information on the supported financial markets, spreads, commissions, account types, etc. The broker didn't even bother presenting the information to look more professional.
How Does Leeds Capital Scam Clients?
Leeds Capital reaches clients through phone calls and emails after they sign up with it. According to customers, the company asks them to add funds to their accounts and keeps following up until they do so. Once the broker becomes aware of bleeding you to the last drop of blood, it sets asides as if it doesn't know you. It neither answers your calls nor replies to your emails afterwards.
How To Spot A Forex Scammer?
Spotting a forex scammer isn't tricky if you pay close attention to relevant details. For example, you should always confirm the regulatory status of your prospected broker with concerned regulatory authorities. Moreover, reading through clients' feedback on review websites like BrokersView can also help you know if the firm is a legitimate concern or if you should avoid signing up with it.
Forex trading isn't a source of easy money. You need to burn your blood to learn the art of trading. So always be careful of brokers promising unrealistic returns over a short period since it will likely be a scam broker. The best approach is to start low and gradually increase your account exposure with any brokerage. That's how you can help yourself prevent severe losses besides becoming aware of your broker's overall affairs.
If you have any problems with forex brokers, you can contact Services@BrokersView.com.