French financial regulator Autorité des Marchés (AMF) today issued a general public warning about sites touting the benefits of an algorithm which links to a trading platform, and a specific warning about a software package known as Preditrend.
The warning comes after a recent communication campaign advertising Preditrend reached a large number of investors through emails, interviews and advertising on social media. The campaign described Preditrend as a guaranteed money maker and put forward various claims, including “the average success rate can go as high as 75%” and “more than three out of four trades are expected to turn a profit”.
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The investors who were targeted by the campaign were asked to trade binary options through a variety of websites, including predi-trend.com, preditrend.com and starupf5.com. These sites are all linked to WGM Services Ltd, a Cyprus-based company trading under the name EZ Trader (a binary options brokerage) which was disciplined by CySEC in November 2015 for breaches of anti-money laundering and CIF authorisation rules.
Due to the highly risky nature of the products offered and the misleading nature of the advertising, the AMF has urged the public to exercise extreme caution, specifically with regard to Preditrend, and any other sites touting the benefits of an algorithm which link to an online trading platform.