The little Eurotrip of the Novobrokers trading scam is coming to an end. Regulators have had enough of this shady broker’s shenanigans.
Frankly, we’re on the regulators’ side on this one. In the Novobrokers Review, we put together an analysis of this phony broker to prove that it’s a scam.
Novobrokers is mysterious. We know nothing about the owner of this business. Nevertheless, the broker did claim to be based in the UK.
Thus, we had our starting point. For a financial market entity to provide services in the UK legally, it has to be registered with the country’s Financial Conduct Authority (FCA).
The FCA is a Tier 1 regulator that’s very demanding and strict. All brokers that desire a trading license need to possess an operating capital of at least 730,000 GBP.
Furthermore, they need to provide clients with negative balance protection, segregation of funds, leverage restriction (1:30) and compensation (up to 85,000 GBP) in case of insolvency. The European umbrella regulator ESMA imposed similar rules in the EEA zone.
It seems that Novobrokers isn’t registered with the FCA, or any other regulator for that matter, meaning that the Novoborkers regulation status is “unregulated”.
Novobrokers is an unlicensed and unregulated scam broker that claims to operate in the UK. Since May 29, 2022, the broker has defrauded several unsuspecting traders from Canada, Spain, Australia, the Netherlands and the UK.
Claims of the Novobrokers reputation being legit in the UK are false. The address that the broker posted is fake too.
As mentioned, the FCA has no data on the Novobrokers scam broker. Basically, we’re dealing with an anonymous fraudster here.
Instead of doing business by the book, Novobrokers decided to go rogue. After numerous client complaints against the broker, financial regulators decided to react.
Novobrokers left traces of its crooked scheme. We followed them, as well as trader complaints, and found out where the scammer was active:
The Canadian and Spanish regulators flagged Novobrokers as a fraud. We hope others will too. If you have any useful info on this scam, please share it with us.
Trustpilot warned us that it had removed a “number of fake reviews” of this company/website. That’s not a good look for Novobrokers.
It seems that the con artist hired agents and bots to write fake reviews that glorify the broker’s business. Here’s what real traders had to say about it:
Scam, after advising me to make a huge deposit, now no answer to my calls or emails anymore, 6200$ gone..
The Novobrokers trading platform promises to elevate “your trading to the next level.” Turns out, the broker offers Meta Trader 5.
MT5 is arguably the greatest trading software known to traders. It features cutting-edge tools such as live market reports, instant execution, algorithmic trading, branch optimization, etc.
However, the download file contains a demo version of MT5 that doesn’t belong to Novobrokers but rather to the notorious Bulgarian-based boiler room – Stockton LTD.
Novobrokers claims to offer a mobile platform as well. Again, it’s MT5, just adapted to Android and iOS.
We wouldn’t recommend you download it. It’s not Novobrokers’ platform. It’s some shady piece of software that might as well be rigged.
This is where the scam takes a cunning turn. Screenleap is essentially an app that allows screen sharing & online meetings, similar to AnyDesk and TeamViewer.
No doubt the scam broker will try to use this to gain access to your PC. You mustn’t allow this because all of your financial files such as credit card & savings account info would be compromised.
From experience, we know that scammers buy Google ads or hire agents to run marketing campaigns. We also saw shady Facebook & Instagram posts and YouTube videos.
Scammers also invite victims to private WhatsApp & Telegram chats and present tempting offers. LinkedIn recently became a beehive of fake ads.
Beware of dating apps as they are full of fake accounts that want to defraud you. Lastly, the scammer could call you directly on the phone and use a fake name.
The offer of this broker is fairly limited. There’s only one CFDs option and that’s “Shares”. Here are the Novobrokers trading instruments:
Spreads are a complete mystery. Leverage, however, exceeded the legal limit for retail clients (1:30 in EEA, UK, AUS or 1:50 in US, Canada) and caps at 1:100.
As for the commissions and fees, Novobrokers claims to charge no commissions while having minimum withdrawal fees, which weren’t disclosed. Legit brokers earn from fees, so when they are low or zero, something’s wrong.
The Novobrokers trading accounts essentially differ in the minimum deposit amounts. Here’s an overview:
Everything else is pretty much the same. Some minor benefits allegedly come with each stronger type.
There’s no demo account available. That’s a problem because traders have to invest right away in this shady platform and risk losing everything.
Nowadays, all legit brokers offer a free demo account. That way, traders can make sure they’re getting the real deal.
The Novobrokers withdrawal process is virtually unknown. The fraudulent broker didn’t include a withdrawal policy. All we know is that the funding methods include:
That comes as no surprise since recalling wire transfers can be difficult while crypto transactions won’t trace back to the scammer. Withdrawal issues incoming…
Novobrokers’ legal section doesn’t have the key information in it. If Novobrokers violated any terms and conditions, it’s because the broker is unregulated.
If you’ve fallen victim to this awful scam, you must be frustrated. To make matters worse, you’re not the only victim of Novobrokers scam.
But, Global Fraud Protection is here to help you. Give us a call so we could hook you up with our team of experts that have experience with bank recalls and advanced crypto-tracing solutions such as CipherTrace.
If this broker steals your money, contact us for help. Online Chat is the fastest and easiest way to book a free consultation with us!
No. Novobrokers is unlicensed. The broker’s been blacklisted so don’t invest. If you did, call us as soon as possible.
Novobrokers does not offer a free demo account at all.
Allegedly, there is a downloadable mobile app but the trading software isn’t legit.
It seems that Novobrokers doesn’t offer any kind of bonus. Bonuses are banned in the UK anyway.
No. Novobrokers is unlicensed. The broker’s been blacklisted so don’t invest. If you did, call us as soon as possible.
Novobrokers does not offer a free demo account at all.
Allegedly, there is a downloadable mobile app but the trading software isn’t legit.
It seems that Novobrokers doesn’t offer any kind of bonus. Bonuses are banned in the UK anyway.
The post Novobrokers Review – Unlicensed Broker Scams Traders in Multiple Countries appeared first on Global Fraud Protection.
