South African broker Veracity Markets has been ordered by the Financial Sector Conduct Authority (FSCA) of South Africa to cease all operations effectively immediately from the first of July.
This is an unprecedented unfolding of events as it puts under question the actions of this broker and it also affects the traders who are currently using this broker.
So the next question is Why was the broker suspended and what does this mean for its customers?
Broker misconduct is something that affects traders directly as it is the hard earned money of traders that they mess with.
It is always a great idea to do adequate research on a broker and for that we recommend you use WikiFx.
This app gives you a list of the best verified and regulated brokers world wide with the highest ratings and best customer services.
They also show you which brokers have the most reported complaints and are known scams so that you avoid such brokers.
If you look through the app you will see that for the longest time Veracity Markets has been lowly rated and has had a number of complaints filed against it, so for those caught under their trap they could have dodged a bullet here if they looked through WikiFx.
So don’t blindly trust any broker. Do your research and protect your funds.
What is the FSCA?
The FSCA it the regulatory body placed by the South African government to ensure that financial institutions and financial service providers adhere to strict rules of conduct.
It is their job to ensure that these institutions offering financial products do not infringe on the rights of its consumers and they also seek to further protect the consumer by educating them on the financial market and its inner workings.
It is within their power to shut down institutions which do not abide by these set rules of conduct, which then brings us back to Veracity Markets.
Why was Veracity Markets suspended?
Although both Veracity Markets and the FSCA have not released a press statement detailing why the broker has been suspended, we can come to a few conclusion as Veracity Markets has had quite the notorious reputation in the past few months.
On the 1st of July Veracity Markets released a statement on Facebook detailing the recent order by the FSCA to cease all market activities.
Many customers have complained that this broker has withheld their withdrawals as some waiting for weeks on end to receive their earned profits.
They have been also shown to meddle with open positions of traders, closing open positions without the consent of the traders who opened them without giving good reason for doing so.
Some have complained that the broker has also given severe slippage which blew several trading accounts, which is not a good sign at all.
Another glaring red flag is that Veracity Markets sometime last year applied for liquidation and bankruptcy.
This usually means that a company is at a brink of closure and that its funds are drying up.
This could explain all these strange actions taken by the broker over the past few months to encourage the money coming into the broker and severely limit the money coming out.
How have Veracity Markets clients been effected？
It is actually surprising that the FSCA took so long to react, but it seems like the actions of Veracity Markets have finally been noticed and rightfully so the broker has been suspended until further notice.
This is not exactly a win for some traders as this has affected those who are using this broker to trade.
Since the announcement many are now complaining that their funds are now held up by the broker as Veracity Markets has been ordered to not accept deposits or withdrawals.
For many who were depending on this broker to enter the market with these fund they temporarily cannot do so until the FSCA allows Veracity Markets to resume its activities.
One cannot say if the broker will be forced to close down yet as the FSCA is still yet to decide over the fate of Veracity Markets but it sure is a telling sign that this broker has engage in some kind of misconduct.
I highly recommend that we traders should stay weary of this broker and in the future to stay far away.
Remember no broker is your friend, always do your due diligence and research your broker through WikiFx.
There are so many brokers out there so do not get caught out by these sketchy brokers.
Find the best verified and regulated brokers and rest easy knowing that your funds will be protected.