Beware! This is an offshore broker! Your investment may be at risk.

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General information

The offer of this broker seems quite attractive: trading on MetTrader5 with competitive spreads, high leverage levels on many currency pairs and an array of CFDs. The initial investment required is not too high ($100), but be prepared to say goodbye to all of the money you deposit with IPT Markets.

The broker is registered and headquartered in the Marshall Islands and allegedly has presence in South Africa, Hong Kong, Malta and UK. It is owned by the already notorious Black Parrot Limited, a company registered in the Marshall Islands that operates a number of shady brokerage brands.

 

IPT Markets Regulation & Safety of funds

As we already mentioned, IPT Markets is an offshore broker, which basically means unregulated. Such brokers are not licensed, nor overseen by any governmental agency. What is worse, we have reasons to believe that the this is one of the many brands of a company involved in investment scams. Black Parrot Limited operates a number of brands with very bad reputation. A number of popular forex trading sites and forums are full of complaints against Vortex Assets, TradeGBP, TradesPrime ,Tradex1, Tradedax, to name a few.

Accordingly, this company is present in the black lists of several financial regulators, including the Polish Financial Supervision Authority (KNF), the Hong Kong’s Securities and Futures Commission (SFC), and Italy’s CONSOB.

 

IPT Markets Deposit/Withdrawal methods and fees

We went through the terms and conditions of IPT Markets uploaded on their website and found some point which are unfavorable to the broker’s clients. More specifically, holders of MAM accounts are not allowed to withdraw any money within the first 6 months after their initial investment. The thing is, after those six months expire, you will not be able to recover your money sent by credit card.

 

 

How scam works

Most scammers get some contact information for their victims via some phishing websites (such as FinTech ltd). They cold-call potential clients, promising quick and large profits. Those who get on the hook and deposit, no matter how much, are soon asked to invest more. Basically, there are many chains in the scam scheme and all people involved strive to get their portion of the pie. The websites get a certain sum for the contact info, the Sales departments of brokers who first get in touch with victims get around 50% of the money invested, and then the “Retention” employees who persuade clients to deposit more get a commission amounting to around 10% of the deposited funds.

We read a number of complaints filed by victims of the various brands of Black Parrot Limited and the stories are very similar. Most people say they have been contacted by a representative of the broker with promises of attractive payouts. One of the victims said he deposited only $500 as he wanted to test the waters first. At the beginning, an account manager kept calling and there were some profitable trades. After that he stopped calling and it turned out that the victim’s account has been zeroed. Of course, the latter was unable to get in touch with his account manager, nor the broker’s support anymore.

Another client of a brand operated by Black Parrot allowed them to use Teamviewer, thus allowing acces not only to his trading account, but all his banking information. The result was catastrophic – his bank account was emptied.

 

What to do if scammed

If you made a payment to a scam broker via credit card, you must immediately get in touch with your bank or credit card issuer and file a chargeback. If you have provided the scammer with some personal banking information, you’d better cancel the card or change your web banking pass as soon as possible.

Another thing you can do in case you have been ripped off by a forex or binary options broker is to report the company to the respective financial authorities and in some popular trading websites and forums, so that others are warned against these scams.

Don’t waste your time with third party “recovery agencies”, as many of them are also fraudsters, especially if they require upfront payment.

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