Our network of Financial Fraud Lawyers specializes in disputes between brokers, i.e. trading platforms, and traders, i.e. those who invest in brokers. We protect traders against malicious brokers: promises of extraordinary gains, mismanagement of investments, commercial pressure, impossibility to withdraw invested funds, etc.
In this article, we will discuss the FXGlobe broker and our client Pascal N.
I / The case of our client Pascal N. and FXGlobe
Pascal N. is a French citizen, who invested and lost the amount of €67,000 made to FXGlobe through the www.fxglobe.international platform operated by FS INTERNATIONAL LTD registered in Vanuatu.
According to publicly available information, at the time of our Client’s trading activity, www.fxglobe.international was authorized to use the trade name “FXGlobe”, i.e., www.fxglobe.international was affiliated with entities that are part of the FX Globe group.
Based on the available evidence, we suspect that an alleged “Boiler Room Scheme” was set up by the affiliated entities. But what is a “Boiler Room Scheme”?
According to the United States Securities and Exchange Commission (“SEC”), “boiler room” schemes are large-scale operations designed to lure as many investors as possible into an investment scam, often using high-pressure sales tactics through email, texting, social media and other means.
Boiler room scam tactics include:
- Aggressive sales tactics or threats. Scammers may use aggressive sales tactics or even threats (for example, threatening to file a lien on your property) to scam you.
- Pressure to buy quickly. No reputable investment professional should pressure you to make an immediate decision about an investment.
- Unsolicited offers. Any investment offer you didn’t ask for, especially if you don’t know the sender.
- Promises of high returns with little or no risk: Every investment carries some degree of risk, and the potential for higher returns usually comes with greater risk. If it sounds too good to be true, it is.
Our client, Pascal N., is a 63-year-old self-employed person. In October 2018, he received a “cold calling” from Mr. David Santini, who introduced himself as working on behalf of the Cyprus-based trading platform FXGlobe limited. In order to convince our Client to invest in the financial markets, Mr. Santini presented FXGlobe as a trustworthy and reliable broker, which is authorized to provide investment services in France by the “Banque de France.”
After being misled by the description of the services offered by FXGlobe, our client decided to invest through the FXGlobe platform and decided to create an account on the platform. However, despite being approached by an FXGlobe representative, he was transferred to the platform operated by the offshore entity – FS INTERNATIONAL LTD without his knowledge and consent.
Indeed, our client executed his trades on the MT4 online trading platform and not on the FXGlobe website in Cyprus. Therefore, he did not recognize that there was a difference between the entity that brought him on board – FXGlobe and the entity he contracted financial services with – FS INTERNATIONAL LTD.
A few days after our client’s account was transferred to the www.fxglobe.international platform, he was contacted by another FXGlobe representative – Mr. Jerome Meunier, who introduced himself as FXGlobe’s designated account manager for him. Our client decided to make a larger investment in the platform based on Mr. Meunier’s recommendation. Mr. Meunier encouraged our Client to invest more by insisting that our Client’s first two deposits (totaling €1000) would not be “enough” to trade.
Everything seemed reliable for our client. During the period October 2018 – February 2020, he invested the total amount of 69,000 euros with FXGlobe. At the end of February 2020, our Client suffered a loss of his entire deposit on the platform by following Mr. Meunier’s advice to open a long position on the NASDAQ . After the loss of his deposit, our Client requested an explanation from his account manager. Mr. Meunier replied that our Client had to make an additional investment if he wanted to recoup his losses. Mr. Meunier also promised our client a 15% bonus on his investment.
In conclusion, we consider that our Client Pascal N. was intentionally misled on the identity of the trading platform on which his financial market transactions were conducted. Indeed, he did not know the difference between FXGlobe and FS INTERNATIONAL LTD. Based on the above facts, we suspect that FXGlobe manipulated our client through misleading financial information and investments in unregulated entities in order to deprive our client of his funds with the cooperation of his affiliate company.
For your information, the CONSOB (Italian regulator) and the FCA (English regulator) have blacklisted FS INTERNATIONAL LTD et www.fxglobe.international:
II/ Who is FXGlobe?
Founded in 2008, FXGlobe claims to be an “unpretentious” ECN broker, focusing on optimizing their services and trading technology. They offer more than 70 tools, including currencies, CFDs, stocks, shares and crypto-currencies for online trading. The broker caters to over 45,000 traders with different experience levels and investment scales from around the world. They use a non-trading desk (NDD) model, so they should have no conflict of interest with their clients.
FXGlobe Limited is a company registered in the Republic of Cyprus, registration number HE 254133, licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC), the regulatory agency of the Republic of Cyprus, license number 205/13.
The Cyprus Securities and Exchange Commission, better known as CySEC, is the financial regulator of Cyprus. As a member of the European Union, CySEC’s financial regulation and operations are in compliance with the European financial coordination law MiFID.
III / What are FXGlobe’s services?
FXGlobe is a regulated international CFD broker, offering trading services in currencies, commodities, stocks and indices. If you are new to trading, FXGlobe offers various CFD learning tools such as training videos, exercises, demos, etc. It’s all about becoming a trader even if you don’t know your way around. To do this, you need to sign up for an account to get help. Obviously, we advise you to be wary until you are sure that you have certified the authenticity and benevolence of the broker.
Traders can only use one account to trade a range of markets. The hours to start trading are from Sunday at 23:00 GMT to Friday at 22:00 GMT. They offer the following assets for online trading:
FXGlobe provides one of the world’s leading desktop trading platforms, MetaTrader 4 (MT4). MT4 can also be used as a web trader. It works directly in most modern web browsers without downloading or installing any other software.
There are several account types: standard, expert and pro. Obviously, traders have a minimum deposit of $500 up to $2000. This is a very high minimum deposit, knowing the competitors.
For withdrawals and deposits, you may incur certain fees depending on the payment method.
If you feel you have been scammed by FXGlobe or another trading platform, you can contact us through our contact form.