Veracity Markets Closed by the FSCA
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Have you heard the news that Veracity Markets was closed by the FSCA? How does the Veracity Markets‘ shutdown affect its customers?
Under the Financial Sector Conduct Authority (FSCA) investigation, Veracity Markets, a South African broker, has ceased all its operations effective from July 01 2022.
Traders currently using this broker are also affected by the unexpected unfolding of events as it raises questions about the broker’s actions. Next, we need to ask why? Why was the broker suspended? Read on to find the answers to all your questions.
Veracity Markets closed- another scam broker exposed!
The misconduct of brokers directly affects traders since they mess with their hard-earned money. When looking for a broker, it is best to conduct adequate research. Web search is an excellent resource.
You can also download apps that provide a list of the highest-rated and regulated brokers worldwide with the best customer service. Additionally, they let you know which brokers have the highest rate of complaints and are known scams to avoid. Those caught under Veracity Markets’ trap might have avoided a bullet if they had looked through scam alerts.
Veracity Markets has a low rating, and many complaints have been filed against it. Therefore, don’t trust any broker blindly. Be careful while investing your money and do your research.
Veracity Markets overview
In 2020, it was founded to empower its customers to trade Forex confidently. Veracity Markets was expected to be a significant broker in the forex trading industry in Africa.
Over the past two years, Veracity Markets has grown from a relatively unknown company to a significant player in the African Forex trading industry. Trading on the platform seemed to meet the needs of its clients and facilitate the trading process for traders of all levels. Veracity Markets provides three types of trading accounts, more than 250 trading instruments, and 24-hour customer service.
A South African-based broker founded in 2020, Veracity Markets offered online forex trading. The company has two physical addresses: 155 West Street, Sandown, Sandton, 2031, and 80 Strand Street, Cape Town, 8000. Due to the fraudulent activities of this broker, it was banned under investigation by the FSCA, leaving investors in shock.
A total of 55 currency pairs and precious metals were available to investors at Veracity Markets.
A leverage of 1:1500 was available to clients at Veracity Markets, which was considered high. Leverage can amplify both profits and losses. A trader must know the risks involved, especially an inexperienced or new trader.
Spreads and commissions
For standard accounts, spreads started at 1.6 pips; for fixed spread accounts, spreads began at two pips; there were no commissions for Forex and metals. For ECN accounts, spreads began at 0 pips.
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Deposit and withdrawal
In addition to supporting bank transfers, credit/debit cards, and popular electronic payment methods such as Neteller, Skrill, and Fasapay, Veracity Markets provides traders with various methods for depositing and withdrawing funds.
In a recent post, they informed you that they would no longer be offering FNB as a deposit option and asked you to refrain from making manual payments through the bank.
Recommended Local Brokers to Trade With
Is Veracity Markets under a legitimate license?
Depending on the country/region, the legitimate license is issued by the financial regulatory institution.
As a result of the broker’s license, the money you invest is protected to some degree by the regulatory authorities. To evaluate a forex broker’s reliability, one of the most important factors is whether they hold a legitimate license.
Regulators and licensing agencies in different countries and regions differ in the content and difficulty of obtaining licenses. WikiFX reports Veracity Markets as unregulated. The broker claims that FSPR with number 40983 and FSCA with 4701 are suspicious clones. Some clients from South Africa experienced serious slippage issues while trading with Veracity Markets.
Investors have complained that Veracity Markets used excuses to delay withdrawal requests. Initial reports stated that Veracity Markets had technical problems with their banking system. Then they said they had changed the bank details, and later this month, they promised to fix the withdrawal problem. However, investors have not yet received their money back.
A trader claimed that his funds had not been credited to his account. Therefore, he decided to contact Veracity Markets’ customer support team. Unfortunately, this broker didn’t respond to him.
There is an official Twitter account for Veracity Markets. This account, however, does not contain any content. Veracity Markets has been rumoured to be considering filing for bankruptcy and liquidation on Twitter.
Many traders have criticized Veracity Markets as a broker for unjustly suspending traders’ accounts.
Veracity Markets will likely cheat you out of your money by taking it away fraudulently. Due to the complaints from the traders, we recommend understanding the potential risks before making any decision.
Role of FSCA in Veracity Markets shut down.
South Africa’s Financial Services Commission is a regulator that ensures financial institutions and financial service providers follow strict rules of conduct. In addition, they educate the consumer on the financial market and its inner workings to ensure that these institutions offering financial products do not violate consumers’ rights.
Their authority extends to shutting down institutions that violate these standards of conduct, which brings us back to Veracity Markets. What was the reason for their closure?
Reasons for Veracity Markets closed down.
As Veracity Markets has had a notorious reputation in recent months, we can come to a few conclusions about why the broker has been suspended without a press release from either party, Veracity Markets or FSCA.
In a statement posted on Facebook on July 1, Veracity Markets explained the recent order by the FSCA to cease all market activity. According to the Facebook post
The Financial Sector Conduct Authority (FSCA) gave them a directive detailing specific and immediate steps they must take on June 28, 2022.
In its statement, the broker maintained its commitment to complying with FSCA regulations. As a result, they will be engaging with the FSCA in regards to its content and taking the following steps as a temporary measure:
- All new business must cease immediately.
- The company will immediately place all current trading positions on ‘close only’ mode. The company cannot open any new positions during this time.
- Following the system, all open positions will be closed automatically at the end of the trading session on July 1, 2022.
Until the FSCA instructs them otherwise, the company will cease paying out withdrawals or redemptions made by clients, fees, charges, commissions, bonuses, and profits, including any funds held on behalf of any other person.
The bank is in active contact with the FSCA about this point, among others, and expects to have clarity by the end of next week. In the meantime, they claim that client funds remain safely segregated in the mandated client accounts. Also, Veracity Markets mentioned that its registration with FSCA will remain in force.
In their statement, they condemned the unfortunate impact of the directive and reaffirmed their commitment to balance regulatory commitments with the best interests of Veracity Markets’ clients.
Additionally, their support staff remains on standby during our usual hours to assist you with any inquiries you may have. However, they cannot provide much more insight than the above.
The broker has been accused of holding withdrawals from its customers. Some have been waiting weeks to receive their profits. Traders have also been caught meddling with open positions, closing them without the consent of those who opened them and without a good reason.
In addition, some traders have complained that the broker has caused severe slippage, which resulted in several trading account blowups. Veracity Markets filed for liquidation and bankruptcy last year.
Usually, this indicates that a company is on the verge of closing and that its funds are drying up. In this sense, all the strange actions the broker has taken over the past few months could be explained by his efforts to encourage money to come into his brokerage accounts while limiting money to leave them.
How does it affect the clients of Veracity Markets?
Veracity Markets finally caught the FSCA’s attention, and as a result, it has been suspended until further notice. Surprisingly, the FSCA took so long to act, but their actions have finally been noticed. The fact that this broker has affected traders who use it to trade is not a win for them.
It has been reported that Veracity Markets has held up many people since the announcement since it has been ordered that deposits and withdrawals cannot be processed. Until the FSCA permits Veracity Markets to resume operations, many who depend on this broker cannot trade with these funds.
Since the FSCA has yet to decide when Veracity Markets will be forced to close down, one cannot predict if it will be forced to do so, but it is clear that this broker has engaged in some misconduct.
Traders should remain wary of this broker and stay away from it in the future. Never trust a broker without doing your due diligence and researching them beforehand. There are a significant number of brokers out there, so don’t get taken advantage of by shady ones. Find the best verified and regulated brokers to ensure your funds are protected.
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Warning- Fake Veracity Markets closed, shutting down hints
Forex trading is often introduced to South Africans through a promoter they find on Instagram. Some people set up fake Instagram accounts that show off a flashy lifestyle they attribute to their success in Forex trading.
Scammers often run managed account schemes. Before following one of these promoters, remember that they will likely be scammers! Their business model is an Introducing Broker, and they profit from your trading activity.
It would be best to educate yourself about day trading before checking out the many Expert Advisor plugins available for Metatrader 4.
Veracity Markets Scam
The more and more reports that come to light, the clearer it becomes whether or not Veracity Markets is scamming its clients. Our experience indicates that if a broker makes it onto this list, it is almost always a scam.
You have probably been scammed if they have done anything similar to the below.
Legal scam signs
- There is no regulation of the company or broker.
- An untrustworthy foreign regulatory body regulates the company or broker.
- A least known jurisdiction regulates the company.
- There has been a suspension of the company’s license.
Behavioural scam signs
- It has been overly pushy from the broker to get you to deposit money with him.
- When you request a withdrawal, the broker does not respond positively.
- You cannot withdraw your funds from the broker.
- Your broker has offered you a bonus or encouraged you to accept it.
- An unauthorized user has logged into your computer.
- Your broker charges you for withdrawing funds.
- The broker placed trades without your knowledge
- Unauthorized withdrawals from your account or credit card charges
- To verify your credit card, the broker requested a picture of the front and back of the card.
- You were asked to send your government-issued ID in an email or on the website by the broker.
- After your broker told you to place an order, you immediately lost most of your money.
Do you think Veracity Markets is a scam? Whatever Veracity Markets reviews tell you, Veracity Markets is a scam. FSCA has ceased all activities and operations of Veracity Markets due to a fraudulent broker’s reputation.
Our recommendation is not to trade with them. You should immediately stop depositing funds with Veracity Markets if you are already trading with them, particularly if they ask for a withdrawal fee. It is not worth the price. Choose another broker to start your trading again, and be sure who you choose to trade with.
Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.
Forex Content Writer | Market Analyst