Caution! Greenspal is an offshore company! Your funds may be at risk.
Greenspal Key Facts
🔴 Greenspal offers questionable products and services. A scam sign!
🔴 Greenspal doesn’t reveal critical information about their business. Red flag!
🔴 Greenspal doesn’t hold a license to offer financial services. Red flag!
🔴 Greenspal is a recently registered website. Disturbing sign!
Greenspal products and services
Greenspal.com offers Forex and CFDs trading with leverage reaching as much as 1:500. As we are located in a strictly regulated environment with a leverage cap of 1:30 they shouldn’t accept us as clients. But they did, so they effectively breach the financial legislation they have to abide by. It points out that Greenspal.com is an unregulated business, i.e. risky to deal with.
Greenspal.com also offers investment products with rates of return as high as 30% guaranteed, which is an alarming sign. Such gains are impossible for fixed-income investment products, so beware. There are too many red flags considering the products and services they offer.
People should always be cautious when dealing with businesses offering enormously high yields because it’s scammers’ trait to promise big and create unrealistic expectations. In reality, regulated financial companies cannot secure more than a few percents annually with their fixed-income products. There is a huge discrepancy between these offers and the regulated companies standards. Judging by the products and services they sell, we suspect it’s a scam, so beware.
Greenspal company and regulation
Greenspal refuses to disclose the name of the company that’s running this website. It’s disturbing because as an investment provider they are bound by the law to operate transparently and provide the public with the basic corporate information.
On their website, they claim to be FCA regulated, but we couldn’t find a licensed company associated with this website. The fraudulent assertions are solid evidence of a scam. In fact, in their Terms and Conditions, they claim to hold Isle of Man gambling license, which is irrelevant to the products and services they offer.
The US financial services regulation is very complex in the USA. Derivatives markets regulation is a responsibility of CFTC and NFA. Forex brokers and most of the investments companies have to be NFA members and CFTC registered to operate in the USA. On the other hand, securities markets are controlled by the SEC, a government independent agency responsible to maintain the integrity of the financial markets.
While SEC focuses more on the procedure regulation insisting on financial reports and management discussion and analysis, NFA and CFTC impose pretty straightforward requirements. To become authorised the companies have to provide 20 million USD in paid-up capital, which is considered a guarantee that the businesses can survive in turbulent times and pay whenever they have to.
Other customer protection measures include clients’ accounts segregation and leverage restrictions for forex brokers- 1:50. Also, CFTC brokers’ clients are not allowed hedging, which is one of the very unique US features. Unfortunately, the cryptocurrencies regulation is still inept, so traders and investors should be wary when dealing with crypto offers.
Greenspal address and contacts
Greenspal refuses to provide the public with their address and contact numbers, which is yet another red flag. It shows a lack of transparency, meaning that the company aims to remain hidden from the public and the authorities. It’s a fishy business.
Transparency is crucial when talking about brokers and investment companies, and it’s part of the regulatory framework. The regulated companies are open to financial authorities following certain transparency rules, so it’s generally unlikely to conduct fraudulent activities. They are also bound to provide the public with crucial information about themselves, making it easy for traders and investors to confirm the company’s legitimacy.
Greenspal.com website info
Greenspal.com is a domain name registered on 9th of July 2020, so it’s 6 months old website at the time of writing. The age refutes their claims to be a company with long term operations, so it’s yet another red flag we have to note.
It’s hosted on a Singapore IP: 126.96.36.199, which co-hosts 85 other websites. Some of the domains belong to Forex brokers and investment providers, so we believe these are linked to each other and probably run by the same people.
Alexa doesn’t even rank this domain, so it’s a highly unpopular website people do not trust, regardless of the age. The Alexa ranking isn’t a key determinant, but the lack of popularity certainly makes this investment scheme a business open to questions.
See some of the websites co-hosted on the same IP address in Singapore.
We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority.
However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.
Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.