Tope Ijibadejo, Nigeria Region Manager for CMTrading, Africa’s largest online broker and a leader in the international markets, gives his thoughts on how to invest in Forex and how to potentially spot Ponzi investment schemes.

“When looking for a reputable broker, there are several signs one should look out for, as forex trading can be accessed by pretty much anyone. Firstly, ensure the broker is licensed and operating under a government license or regulation that covers your country. Licensed and regulated brokers are bound to operate under set rules and standards.

“Generally speaking, this should help protect your interests. Always ensure the license that covers you is the one that is from your country of citizenship or residence. However, if your country does not regulate the operation or broker, you can still get a layer of protection by ensuring the broker is working under a known government license.

“It is also important to research the company’s track record and reviews. Reviews can be helpful but sometimes competitors pay review websites to taint the image of other companies just to look better in the public eye. For a better picture, it is more effective to find unbiased information about a broker from its existing and former clients. Find somebody who knows somebody else that has experience using the broker’s services. This might be time consuming, but it could save you a lot of time and money in the bigger picture.

“The most common scams in Nigeria are investment scams. It is rampant because there is a prevalent trend where investors try to grow their money through legitimate means online – like forex – without going through the process of understanding the basics of online trading. Unfortunately, con artists capitalise on this trend and set up scam companies that promise juicy monthly returns with guaranteed capital protection. Ignorant investors fail to investigate the validity of these bold claims and get their fingers burned.

“In most situations, to build public confidence, these companies start ponzi schemes by using part of newer investors’ capital to pay interest/ROI to the older investors. Satisfied investors are used to draft in greater participation by giving mouth-watering benefits for referral. These companies are aggressive with advertising and publicity so they can maximise and expedite exposure. Some will even go as far as securing famous social media influencers and network marketers to encourage participation. From the outside, it appears to be working and can do so for over a year, until the perpetrators either disappear with the money or start to experience a decline in new investors, which leads to the scheme crashing.

“To protect yourself against forex scams, you must understand the principles of investing in forex. Like every other business, trading forex has underlying risks. That means, no risk – no reward. Stop looking for guarantees, as you will most likely buy into lies and fall victim to unfulfilled promises.

“Investors must educate themselves as it helps them manage risk better. Profit is made only when the trader outsmarts the risk, and investors who are well informed are more likely to do so.

“It is advisable to invest your money directly with a forex broker instead of putting it in the hands of a third party. Money invested with a forex broker is accessible and withdrawable at any point in time should you no longer be confident or happy with the outcome of the investment. However, when you invest using third parties, you put yourself at their mercy. It can become frustrating, much like watching TV without a remote control to adjust volume or change stations.

"Moreover, should you decide that you have not invested wisely, you may find yourself trapped in the investment and have no choice but to await your fate. If you must utilise the service of any third party, fund your account with a broker and share your trading account login details with them so they are able to make trades on your behalf, or better still, use a copy trading solution if it is available. If you are not happy with the outcome, you can either lock out the third party by changing your password or stop copying trades. This is the type of control every investor should have.

“There are regulatory bodies that you can refer to in order to verify brokers before you trade. Check the broker’s website to confirm which license or regulations they are operating under and visit the regulator’s website to verify this claim. Every regulator has a list of the brokers they oversee on their website.

“The reason scams are so prevalent is due to a lack of regulation in some countries. Citizens will never know it all, so it is up to the government to protect them from public financial scams. Should your country not regulate forex business, it is vital that you gather enough information and eliminate ignorance before investing. This can be achieved by attending seminars, webinars, workshops or conducting comprehensive online research before making an investment. Forex scams are more common in countries without any form of licensing or regulation. Within the last decade, Nigeria has experienced several high-profile forex scams because of this.

“Trading with an offshore broker is riskier because you will not be covered in the event of bankruptcy or any other unforeseen situation. It is safer to trade with a broker that is licensed and regulated by your own government. Your government is expected to offer protection through regulation.

“Regarding Nigeria specifically, there should be a move by government to understand and regulate the forex industry (like South Africa did some years ago), seeing that there is significant interest in the forex business. Regulation will help eliminate high profile forex scams, increase investor confidence and participation from corporate entities which will ultimately grow the economy”.

For more information on CMTrading, visit their official website at www.cmtrading.com or call +27 10 500 8026 and one of their friendly staff will assist you.

CMTrading is the brand name of Global Capital Markets Trading Ltd (A Seychelles company, company no. 104785)

CM Trading has been awarded the Best Performing Broker in Africa by Africa investor (Ai) at a recent function at NASDAQ in New York.  The annual Ai Capital Market Index Series Awards showcase the best of Africa’s investment success stories and CM Trading is proud to be recognised as the best in this prestigious award ceremony and sought after category.

Up against some stiff competition with nine other nominees in the Best Performing Broker in Africa category, CM Trading was the winner, with Head of Business Development Paul Venter citing the company’s smooth performance throughout the year as commitment to ensuring its client’s trading in the often complex world of Forex trading and development of a unique range of products and services that make CM Trading, well, simply the best!  

Daniel Kibel, Director, CM Trading says: “Although this is something that we knew we could win, an award of this nature is recognition of the amazing work that each and every one of our teams is doing each every day to push CM Trading forward.  I accepted this award in person, but I was representing our employees as well as the values and trust that are the cornerstones of our business and so key to our success.  While we still have much to do, we are definitely on the map and very much heading in the right direction.”

Hubert Danso, CEO and Vice Chairman of Africa investor said “Africa’s capital markets continue to provide some of the most attractive propositions for investors globally.  This has been proven in particular by our Ai40 Investors Index, which recently broke through the significant 100-point mark and has been on a bull run for the largest part of 2017.  We are therefore delighted that these awards once again showcase the institutions and CEOs from the Ai Index Series at the forefront of delivering world class returns and improving Africa’s capital market investment profile.” 

“With CM Trading offering clients the best Forex trading experience and having our commitment, our clients and our teams success recognised with this award, there can be nothing but victory in our futures,” concludes Venter.  “When dealing with foreign exchange, with money and with people’s investments, it is so important to be transparent and to treat each client with the same respect, courtesy and transparency – not matter what their investment.” 

CM Trading is “Your local international broker” and is a leading provider of derivative trading solutions to the local and international market.   The company, regulated by the South African Financial Services Board, operates successfully around the globe and assists in increasing their clients trading knowledge, providing personal service and support as well as a range of online solutions to match every traders needs. 

For more information on CM Trading please visit their website https://www.cmtrading.com/, or contact them on +27 10 500 80 26 or via email This email address is being protected from spambots. You need JavaScript enabled to view it. . You can also follow them on Twitter @CMTrading_FX and Facebook @CapitalMarketsTrading.

Instant Property is a new commercial real estate platform, transforming the way that the industry engages with properties, tenants and brokers. Using innovative technology and data analysis, the platform provides a seamless and stress-free solution to the challenges around sourcing, renting and managing commercial property.

“Instant Property has been tailored to suit the specific requirements of each type of user – landlord, tenant and broker,” says Instant Property Director, Wayne Berger. “It is the first solution of its kind in South Africa with advanced features and capabilities and a broad portfolio of properties that span the country.”  The platform grants landlords free access to list vacancies and promote them to an impressive network of specialist brokers and tenants. From November 2017, landlords will also be able to list properties for sale or auction and buy properties online.

“It’s a fast and easy system to use and it is ideal for quick leads on commercial and industrial properties,” says Joshua Pelkowitz, Executive, WH Properties. Tenants can use the seamless search function to locate and compare more than eight million metres squared of business space, and get in touch with specialist brokers who can escort them to the property and provide them with expert support.

Tenants have plenty of search options without the stress or the price tag, and landlords find tenants who fit their requirements so they can earn back on their investments. For the broker, Instant Property gives them access to a branded brokerage tenant management system and vacancy mailing solution which allows them to service tenants in seconds.

"The vacancy mailing system has totally transformed the speed at which I search for property stock and allows me more time to engage with my clients to secure the best property solution for them. After over a decade in the commercial industry, Instant Property is a breath of fresh air and game changer like no other,” says Bonolo Gueye, Maikae Consulting. The system has been designed to provide the capabilities of a national brokerage in an easily accessible and manageable online space. It has also been broken down across commercial and industrial brokerages and sales brokers to allow for richer functionality and support. Listed property fund or Commercial and Industrial brokerages can white-label and customise services that extend from websites and native mobile phone applications to sale and leasing management.

“Our property-centric technology transforms how real estate professionals do business,” says Berger. “Property funds gain access to data and meaningful reports that help them to improve customer experiences, identify trends and make industry moves ahead of competitors. Whether sales, commercial and industrial or leasing based, you want access to people, management tools and support, and that is what Instant Property does.” The Instant Property platform has been designed to boost performance and customer engagement for landlords, brokers and property funds, providing access to a network of potential tenants and cutting back on time wasters and unnecessary costs. It is easy to use and has been optimised for mobile, allowing users to stay connected 24/7.

“We have created a free solution that makes commercial and industrial space easily accessible to tenants and easily manageable for brokers and landlords,” concludes Berger. “Leading organisations have been working with Instant Property since our inception, and they have seen measurable results and benefited from our big data reporting capabilities. We are continuing to add features and functionalities to the site to support our mantra – commercial real-estate made easy.”