Investor Alert: Unregulated Broker Profitto Faces Allegations of Withdrawal Issues

In the world of forex trading, selecting a reliable broker is absolutely critical to avoid costly mistakes and protect yourself from financial losses and potential identity theft. Regulatory compliance should always be the priority, as strict regulatory oversight not only safeguards traders but also ensures adherence to relevant laws and regulations. In this article, we will shed light on concerning issues surrounding Profitto, an unregulated forex trading platform.

Allegations of withdrawal issues against Profitto

Recently, BrokersView received a complaint from an investor who had dealings with Profitto. He reported that his withdrawal request for $617.7 in February 2023 remained pending. Despite numerous attempts to contact the platform's customer support team, he hadn't received his funds.

Similar complaints regarding Profitto's withdrawal difficulties can be found across the internet. Many investors have accused the platform of deliberately ignoring their withdrawal requests, often receiving the standard response, "withdrawal is under checking procedures."

Regulatory status of Profitto: merely SVG FSA-registered

While Profitto presents itself as a reliable platform, our investigation reveals a different story.

Profitto is solely registered with the Financial Services Authority of St. Vincent and the Grenadines (SVG FSA), an offshore financial watchdog that explicitly states it neither licenses forex trading brokerage activities nor regulates entities engaged in such activities. As a result, Profitto operates without proper supervision.

Despite having a physical address in Malaysia, Profitto lacks the required license. A search in the register of Labuan Financial Services Authority (Labuan FSA), a Malaysian financial watchdog, yielded no results for a firm named Profitto Ltd. This strongly suggests that Profitto is illegitimate, especially considering its significant presence in Malaysia (with recent data from Similarweb indicating that 99.43% of website traffic originated from Malaysia).

Trading conditions and risks

Profitto promotes the idea that even novice investors can achieve over 300% returns by simply following the managers through social trading accounts. However, this promotion raises suspicion due to the simplicity of their manager recruitment requirements and the unusually high percentage of returns it claims.

Furthermore, Profitto introduces a self-rebate plan, allowing clients to earn up to 25% of their trading profits back in the form of a rebate. While cashback programs are common among forex brokers, they can potentially increase the risk of unreasonable practices or hidden fees when the platform is not subject to regulatory oversight. An unlicensed broker, in order to cover the costs of the program, may manipulate prices and spreads, refuse withdrawals, or impose hidden fees. Some negative reviews about Profitto have supported these concerns, saying Profitto is "always playing with spreads" or gave "fake candlestick".

Bottom Line

In conclusion, investors should exercise extreme caution and steer clear of Profitto. The lack of proper regulation and concerning withdrawal practices raise significant red flags. The gimmick of high returns and enticing trading conditions should be viewed with skepticism, given the absence of regulatory oversight.

To protect their investments and financial well-being, investors are strongly advised to choose regulated forex brokers with a proven track record of transparency and reliability.