Beware! Aave Blockonomi is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Aave Blockonomi assures us that it represents an established and regulated broker that we can trust with our money without hesitation. But fact checking shows that the opposite is true. This is yet another reincarnation of a well-known fraudulent scheme targeting people without sufficient experience and knowledge of financial markets. Let’s take a look at why it is advisable to stay as far away from Aave Blockonomi as possible.
AAVE BLOCKONOMI REGULATION AND SAFETY OF FUNDS
The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to. Licensed companies are also required to provide a comprehensive set of legal documentation.
The Aave Blockonomi website greets us with the claim that it has been licensed by Malta Financial Services Authority (MFSA) for seven years.
But the footer on the website states that the owning company, P24O ltd, is based in the US and regulated by an institution called US Financial Services Authority.
No such regulatory institution exists. To operate as a forex broker in the United States, a company must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). And there is no P24O ltd among the NFA members.
P24O ltd is actually a name popping up behind a lot of fake brokers we’ve come across – FxbinaPro, Yokohama Fx Global, Prime24 Options, Ultimatebitcash, Sprint OptionTrade, Metrictradingfx, Prime24. In the MFSA database we find several warnings that the P24O ltd is an unlicensed company:
Aave Blockonomi is part of an entire network of fake brokers. It would be an unjustifiable mistake to trust your money to such a website. If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.
AAVE BLOCKONOMI TRADING SOFTWARE
Aave Blockonomi claims to offer clients MetaTrader 5 (MT5), currently the most widely used trading platform in the industry. But that’s another lie. After signing up for an account, we don’t get access to MT5 or any trading software. Not only does Aave Blockonomi not have the legal authorization to offer brokerage services, it also does not have the necessary technological capacity.
You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customised scripts for backtesting trading strategies.
AAVE BLOCKONOMI TRADING CONDITIONS
On the Aave Blockonomi website we find descriptions of a large number of trading account types. Inexplicably, they are divided into “weekly” and “monthly” – there are no such distinctions with genuine brokers.
Aave Blockonomi promises a spread of less than 2 pips, which is comparable to industry averages. But as has been made clear, Aave Blockonomi does not even have functioning trading software. The website provides no information on other basic forex trading parameters such as leverage.
But we see promises of bonuses, which is further evidence that Aave Blockonomi could not really be a licensed broker operating in the United States or a European Union country. All leading financial regulators prohibit brokers from using bonuses, promotions and prize games.
The minimum deposit is 300 USD. For a significantly lower amount you could create a starter account with a licensed broker.
AAVE BLOCKONOMI DEPOSIT/WITHDRAW METHODS AND FEES
On the homepage of the website we see the logos of many popular payment methods such as Visa, MasterCard, Neteller and Skrill. But in the deposit menu, the only option is to send an amount to the specified Bitcoin wallet.
Cryptocurrencies as the only payment method is another hallmark of financial scammers. The reason for this is that cryptocurrency transactions allow the fraudster a degree of anonymity, while at the same time not allowing the defrauded to claim a refund. If you are interested in licensed brokers that also accept cryptocurrencies alongside other transparent payment methods, take a look at this list.
Since Aave Blockonomi does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.
HOW DOES THE SCAM WORK
Trading in financial instruments is a risky business even for experienced investors using the services of reliable brokers. For newcomers, there is also the risk of being deceived by the many scam websites posing as brokerages. These websites are operated by skilled and cunning scammers who lure you with promises of easy profits. Usually these scammers promise to take care of all the bits and pieces of investment for you, but many even use real trading platforms to fool you that your money is really being invested. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.
But your money is not invested and you will never see the promised returns. When you ask to withdraw even a portion of your money, you will be surprised by impossible to meet minimum trading volume requirements and hidden fees that amount to tens of percentages of your funds. Scammers hide behind fake names and offshore companies that are uncontrolled and unregulated, so it will be impossible to hold them accountable.
WHAT TO DO WHEN SCAMMED
If you find yourself in a similar situation, you can request a chargeback. However, this option is only possible if you have used a credit or debit card for the transactions. Visa and MasterCard allow this to be done within 540 days. But if you have provided the scammers with proof of identity, such as an ID or proof of address, these claims can be disputed. Bank wire transfer or cryptocurrency transactions are non-refundable.
In any case, you should inform the relevant authorities in your country about the activities of the scammers and warn other potential victims online. You should not trust offers to return your money for an upfront fee. This is also a known scam and all testimonials from satisfied customers are fake.