The Autorité des Marchés Financiers (AMF) issues a general public warning about sites touting the benefits of an algorithm and linking to a trading platform, and a specific warning about Preditrend.
The AMF draws the public’s attention to an extensive email and social media communication campaign concerning a software package known as Preditrend. The AMF urges individual investors to exercise extreme caution.
In recent weeks, a communication campaign advertising Preditrend, a software solution, has reached many individual investors through emails, interviews and advertising on social media. The campaign describes the solution as a guaranteed money maker and puts forward various claims, such as “a success rate of 70%, “the average success rate can go as high as 75%” and “more than three out of four trades are expected to turn a profit”.
In fact, investors are being asked to bet on binary options through a variety of websites, including predi-trend.com, preditrend.com and starupf5.com. These sites send users to and/or are linked to WGM Services Ltd, a Cypriot company trading under the name Eztrader that was recently disciplined by Cysec, the Cypriot securities authority.
Because of the highly risky nature of the products offered (binary options) and the imbalanced nature of the advertising, the AMF urges individuals to exercise extreme caution specifically with regard to Preditrend and more generally when faced with any site touting the benefits of an algorithm and linking to an online trading platform.
The AMF encourages investors to be vigilant when investing as a matter of course, and remember:
- No advertising materials should make you overlook the fact that high returns always involve high risk;
- Learn as much as you can about the intermediary trying to sell you a product (authorisation/certification, company history, location of head offices, etc.);
- Question the company or intermediary about the extent of your legal liability if you go ahead and invest;
- Ask yourself how, and by whom, the purchase price or selling price of the advertised product is set and find out how precisely you will be able to sell the product.
If you have any questions, please contact the AMF Retail Investor team on +33 (0)1 53 45 62 00 from 9 am to 5 pm, Monday to Friday.