Beware! London E-Management is an offshore broker! Your investment may be at risk.
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London E-Management is a binary options brokerage based in the UK. Potential clients have at their disposal a MT4 platform and a number of crypto-currency pairs. The maximum payout it 80 per cent which is significantly below the industry average.
London E-Management regulation & safety of funds
The brokerage is supposedly owned and operated by the British company London Emanagement Ltd with headquarters on 26 Billiter Street, EC3M 2RY, UK. The website of the brokerage, however, has only one language option – French – which most probably means that the actual people behind the operation are based in France. Furthermore, there is a staggering lack of information regarding the brokerage and its trading conditions. We were unable to uncover neither the leverage extended to clients, nor even the required minimum deposit. Furthermore, while researching the brokerage on the web we came upon a very troubling discovery. The main financial regulator of the UK -The Financial Conduct Authority – has issued a warning against the firm urging traders to avoid doing business with it. Here is a screenshot:
We read on the official warning issued by the British financial watchdog that the Forex brokerage London E-Management is actually a clone firm of a legitimate company that falls under the regulatory oversight of the FCA and is registered in the UK with the name London and Capital Asset Management Limited and an address: Two Fitzroy Place, 8 Mortimer Street, London, W1T 3JJ, UK. Scammers often act in this manner by using a bit of corporate information mimicking an authorized firm in order to lend themselves legitimacy.
Nonetheless, on the website of the brokerage we did find some information, if only little, about its actual offer to traders. Presumably potential clients are provided with the MetaTrader 4 trading platform and a web-based trading platform. The MetaTrader 4 is the foremost trading terminal at the moment and the option of a web-terminal as well is usually considered an advantage. However, we were not able to download the platform and through a demo account get acquainted with the trading conditions of the brokerage. Having in mind the warning of the FCA we can safely conclude that the brokerage does not in fact provide the trading platform. All in all, we recommend traders stay clear of London E-Management.
Furthermore, we urge traders to minimize the risk in trading by taking up on their offers only brokers regulated by prestigious agencies, such as the UK’s FCA and CySec, require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
London E-Management deposit/withdrawal methods and fees
Hand in hand with the lack of information regarding the trading conditions we couldn’t discern the payment methods available for clients. In the terms and conditions we read the following troubling provision:
London E-Management does not explicitly specify any withdrawal fees, however, leaves for itself an open door in the terms and conditions which could theoretically allow to incur any fees it may wish. We always remind traders to take notice about the many safety-checks they may try with the brokerage, instead of trusting it at face-value. Firstly, they must always invest only the required minimum deposit, so that there is certainty about the legitimacy of the brokerage, before risking a bigger amount. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. If they do – traders may rest assured that they’re dealing with a scammer.
How does the scam work?
One of the best trust-creators in the trading business is the regulatory status of a brokerage. Solid regulation is extremely important in business because it distills confidence and almost completely removes the risk that the brokerage might be a scam. Nevertheless, we may not always rely on regulation and traders should be informed about the ways of scamming:
Almost certainly you have had pop-up ads waving “quick money” at your face while browsing the internet many times. One day, you simply click on it and a nice-looking website such as Bitcoin Blueprint or Bitcoin’s wealth shows up asking you to register. After sharing your personal information, a call from a broker will undoubtedly come, a broker with a once-in-a-lifetime opportunity for you. After a few minutes of him gabbing about it , you decide to deposit some $200-250. From those few hundred bucks the broker gets a fat commission.
However, brokers are surely aware they can get more out of you. They redirect you to the “retention” where next in line scammers begin working you into putting even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what is left of your account.
Now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, the scammer will begin pleading with you to wait it out, six months at the most. What they aim at is barring you from filing a chargeback with your bank. If six months expire, that option is closed and your money is gone for good.
What to do if scammed?
We wish no trader has to consider such circumstances, however, in the dire case you are scammed – it is much better knowing what available options you have in front of you:
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate and ready at anything to somehow recover their losses. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!