Be Wary of CFDs Broker Easytrade55, Germany BaFin Warns

Germany’s top financial regulator today warned of the dangers posed by offshore brokers that continue to chase online trading business, including within the gray area of the country’s cryptocurrency sector.
BaFin has specifically marked another firm with the red flag. The highlighted that a company called Easytrade55 Ltd is running an illegal business while having not acquired proper authorization. The firm under BaFin’s firm offers German customers CFDs that allegedly give them exposure to FX and cryptocurrency instruments.
Even without the BaFin’s intel, one can easily suspect Easytrade55 Ltd to be a suspicious company as they claim to offer profitable auto trading expert advisors (EAs) that yield up to 4 percent per day. The company goes even far with their pledges on their website stating that it offers powerful forex trading strategies that make trading with them outstandingly risk-free.
According to the watchdog, Easytrade55 claims to be located in Frankfurt, which seems untrue. Either way, the financial regulator further urged its citizens to be careful and follow due verification processes, check the company’s identity (identity details, country of establishment, etc.) and to never trust a company if it cannot be clearly identified.
BaFin turns eye to crypto
To prevent such practices, BaFin issued several guidelines which encourage potential investors to be wary of promises of disproportionate returns. A guaranteed investment with a high return that considerably exceeds the market return is often too good to be true, it says.
In an attempt to keep up with the rise of the crypto market, including the number of trading platforms and users, BaFin has been adamant in its warnings toward investors, elaborating on the potential risks associated with the booming industry.
Crypto firms operating in Germany have to apply for a license to the nation’s  since the end of 2019 when the new Anti-Money Laundering (AML) regulations came into effect. Although derivatives referencing cryptoassets would not fall under this suggestion, they remain subject to  and any future proposals by the  regarding the sale of these instruments to retail investors.