Rock The Stock is a SCAM! Malicious Fraud!!

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The Rock Trading Review – is therocktrading.com scam or good cryptocurrency exchange?

Trading Accounts

Account typРµ Minimum deposit Leverage Fee
Standard EUR 100 Up to 1:5 0.20%*

* Discounts available for high-volume traders.

T he Rock Trading is one of the many compan ies that currently offer access into the world of cryptocurrencies. Like most of them, it does not provide different account types, but rather a differentiated approach to users depending on their level of verification. For example, Fiat transfers through banks (SEPA, Wire) are available only to verified users and besides, their deposits require less confirmations and are faster. Furthermore, they have access to cryptocapital API.

AML/KYC verification process with the Rock Trading is done via US identity verification company Jumio. Furthermore, the Rock Trading has partnered with security centered Bitcoin wallet provider GreenAddress to implement multisignature and instant transaction confirmation.

Unlike most crypto-exchanges, the Rock Trading has set a minimum initial deposit of EUR 100. Another feature available at the Rock Tradin g, which is not supported by most exchanges, is margin trading. Leveraged trading is available at this exchange for several pairs: BTCEUR – up to 1:5; ETHEUR– up to 1:3; ETHBTC – up to 1:3.

The Rock Trading is is a European cryptocurrency exchange, but users from the US are also welcome. Although they are unable to deposit or withdraw funds using a bank account, they can utilize OKPay.

The Company. Security of funds

Company Country Regulation
The Rock Trading Ltd. Malta N/A

The company operating the Rock Trading brand and website is based in Malta, with branch offices in Italy. It started out back in 2007 as a Virtual Insurance Company, and 4 years later it launched Bitcoin trading. In July, 2020 it was registered in Malta as a certified Limited Liability Company . This registration, of course, does not mean that the exchange fall s under any specific financial regulation.

This is currently the most common case when it comes to regulation of concurrency exchanges. Authorities around the world are aware of the massive popularity of digital currencies lately (due to the rapid growth in value of digital tokens such as Bitcoin) and are seeking regulatory solutions to control it. Of course, authorities worldwide claim their main incentive is investor protection.

In October 2020, the Malta Financial Services Authority (MFSA) has proposed some rules for cryptocurrency investment funds. Besides, Malta’s Prime Minister has announced that the Cabinet had approved the first draft of a “national strategy to promote blockchain”, however no further details have been disclosed.

Екілік опциялар брокерлерінің рейтингі 2020:

While the nor the MSFA, nor any other authority is currently overseeing the activity of crypto-exchanges based in Malta, this is not the case with forex brokers. In order to operate legally in the country, they have to be authorized by the MSFA, and comply with a set of rules. Similar requirements apply to forex brokers in Europe and in the countries with well-developed financial sectors.

Trading conditions

Trading instruments (cryptocurrencies)

At the time of writing of this review 7 coins are available for purchase at t he Rock Trading , namely: Bitcoin, Bitcoin Cash, Litecoin, Ether, Ripple, Peercoin and Zcash . The company promises to add more cryptcurrencies for trade in the near future

Currently, BTC/EUR constitutes more than 60% of the trades on the exchange.

As we have mentioned above, the Rock Trading offers margin trading to several pairs traded on the platform, the maximum ratio being 1:5.

Leveraged trading allows investors to trade the financial markets with smaller deposits, Nonetheless, this involves greater risk of losses. As cryptocurrencies tend to be more volatile than “traditional” assets such as forex, Contracts-for-Difference (CFDs), and stocks, not all exchanges offer margin trading. By comparison , all forex brokers provide leverage, most of them offering levels higher than 1:200. That being said, you can also trade in cryptocurrency CFDs with a number of forex brokers.

The f ee structure at the Rock Trading is quite fluid. The starting fee for each new user is 0.20% per trade. Nonetheless, volume discounts are available, based on user’s last 30 days trading volume,and fees can go down to 0.02%. However, volume discounts are not applied to market orders.

Those who use m argin t rading have to pay a rollover fee of 0.01 %, charged in every 4 hours.

Also, keep in mind that deposit and withdrawal fees also apply. You can find detailed information below.

Trading platform

The Rock Trading Exchange offers its users a simple web-based platform, as is the case with most such venues. From the dashboard area on Rock Trading’s website where all of the currencies are listed in pairs with their current market value and volume. If you click on a specific pair, you get to the actual trading platform with graphics, a sort of order book, your open offers, etc.

This is how the Rock Trading platform looks like :

Actually, we find the Rock Trading platform not too functional. It is lacking basic charting tools and technical analysis indicators.

Methods of payment

T he Rock Trading offer s several deposit and withdraw methods :

– B an k wire, including SEPA transfers (USD and EUR Fiats Supported).

The Single Euro Payments Area (SEPA) is a highly reliable payment method. It was initiated by the European Union for simplification of bank transfers denominated in euro. These usually take 1-3 working daysw ith the Rock Trading.

– Cryptocurrency deposits and withdrawals.

If you use GreenAddress, you can instantly deposit your bitcoins. As a Ripple gateway, you can use RIPPLE to instantly deposits any IOU. After months of cryptocapital free deposits and withdrawals, t he Rock Trading add ed a fee on this service: 0.01% is charged on deposit s i while withdrawals will be placed at 0.001% (yes, ten times less).

Only verified customers and can use such cards for Eur 17 plus shipping fees.

Unfortunately, the Rock Trading does not accept Credit Cards. If you prefer to use this payment method, you may check out a list of exchanges that support such transfers.

As the Rock Trading seems to apply transparent approach to all the fees it charges, you may take a look at its deposit and withdrawal fees:

Conclusion

The Rock Trading is a n European cryptocurrency exchange that has more than 5 years of experience in the sphere and applies transparent pricing policy. While it does not offer trading in wide range of digital coins, major fiat currencies like USD and EUR are supported, including the reliable SEPA transfers. In addition, Rock Trading’s fees seem competitive and depend on the investors’ trading volume, which seems pretty fair. While this is obviously a beginner-friendly service, we find the platform too basic. Here is a summary of what t he Rock Trading has to offer:

Pros Cons
More than 5 years of experience, n o major hacks Trading platform lacking advanced features
Accepts bank transfers, including SEPA Minimum deposit required
U SD and EUR Fiats Supported Not regulated
T ransparent and fluid fees structur
Wallets and prepaid cards provided
Margin trading available

Latest news about The Rock Trading

Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.

Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
cTrader
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

Traders` reviews for The Rock Trading

Spread

Slippage

Requotes

Price feed

Platform

Deposit/Withdraw

Customer service

Summary

The Rock Trading Selective Scam Truffa

I’m an unverified customer of The Tock Trading exchange (www.therocktrading.com).

The Rock is owned by two bitcointalk forum members:

eliale (CFO): https://bitcointalk.org/index.php?action=profile;u=35172

paci (CTO): https://bitcointalk.org/index.php?action=profile;u=15648

After I sold my bitcoins and ended up with 35519 euros of balance (see evidence and more details: https://bitcointalk.org/index.php?topic=4975753.0), they blocked all my means of withdrawal, including all cryptos, at least on January/early February of 2020, probably before this.

But they didn’t told me about this block and let me keep obliviously trading/paying fees and making deposits for months even if their own TOS says in this case they must do «useful efforts by TRT to contact the User and urge the completion of the due verification process» TOS point 8.4 https://www.therocktrading.com/en/service_terms/3

I even made a new deposit after the withdrawal block on 21 February 2020.

When I complained, they kept the block on all withdrawals and demanded me to verify my account by sending my personal documents when their FAQ says clearly «verification isn’t mandatory» https://support.therocktrading.com/kb/faq.php?id=27 and the CFO had assure me that they wouldn’t ask for verification if I didn’t request new fiat withdrawals.

They refused repeatedly to explain the facts that justified the block or the abusive verification demand https://bitcointalk.org/index.php?topic=4975753.msg45512110#msg45512110

Of course, I refused to send my documents to people who blocked covertly all my withdrawals, were blackmailing me to give them against their own TOS and tried to justify this with lies and tricks. After a long verification, they would simply reject my documents with a fake pretext.

Moreover, I knew if I sent them my documents they could use them on a criminal way as retaliation if I went public.

On an email exchange, they ended up accepting I didn’t have to send my documents, but added that my money would be kept locked «much more time». When I said I would go public about their actions, they started demanding my documents again.

I have my login/password, I wrote them from my email associated to my account, an email was sent from a second The Rock account they know is related to me confirming my identity, I recalled conversations I had with The Rock CTO 6 years ago on Second Life and offered to confirm my identity using my Second Life account associated with my Rock Account.

Moreover, I still have the banking account used to do a few small withdrawals when their TOS allow this to unverified customers 5 years ago. They ignored these offers of additional evidence.

Since their actions are completely contrary to their own TOS, they tried to justify them invoking inexistant applicable European Laws https://bitcointalk.org/index.php?topic=4975753.msg46225609#msg46225609

They tried to undermine my public complain by creating a fake new bitcointalk account and paying at least one member to post on their defense (https://bitcointalk.org/index.php?topic=4975753.msg45560191#msg45560191 ; https://bitcointalk.org/index.php?topic=4975753.msg46020217#msg46020217 )

Any exchange that says verification isn’t mandatory, waits for a high balance on the account and then blocks covertly withdrawals without any reason, letting the customer unaware of the block keep entrapping more money with more deposits and, when he complains, blackmails him to verify against their TOS, is a scam. They know a few customers won’t ever send their documents, so it’s money in the pocket.

Moreover, they only started asking again for my documents when I told them I would go public if they kept my money blocked.

All these facts confirm that the verification is just a pretext to keep my money.

All scam exchanges start their scams by allowing unverified accounts and waiting for high balances, then they demand abusive long verifications, where they ask documents, authentication, personal videos holding documents and finally they reject abusively the documents and keep the money.

They won’t ever accept this, but just to show I have nothing to hide: I’m willing to send my documents to a trustworthy moderator if they promise to release my money.

How to Spot Investment Scams

Don’t fall victim to an investment scam. It is easier than you think for crooks to con you out of your hard-earned money if you let your guard down. Investment scams come in many forms, and they’ve been around for as long as stocks have traded on Wall Street, but the internet has made it even easier for these vultures to feed on investors tempted by the possibility of an “inside deal.” These scams range from crude and clumsy to highly polished and sophisticated.

Sophisticated scammers wrap their con games in an air of legitimacy, so it may be hard to see the truth, but knowing a few red flags to look out for can help protect your money.

Recognizing Scams

There are many different types of scams floating around the internet, so it would be impossible to identify them all. Even if one could detail each scam out there today, a new one will pop up tomorrow. However, there are some signs you can look for:

Promises of an «inside» deal from a stranger: If someone you don’t know offers you exclusive access to sensitive information, try to consider what this person has to gain. Why would a stranger pick you out to make rich? Does that make any sense?

Fool-proof, money-back guarantees of trading systems: Traders have countless tools at their disposal to help pick stocks. It’s natural for the people who create these tools and strategies to advertise them as the best available. However, when these systems are advertised as fool-proof ways to get rich quick, it’s time to proceed with caution. If such a sure-fire, easy-to-use system truly existed, do you really think you’d find out about it through a personal offer? Legitimate trading tools always remind traders of the risks involved with investing. They would never guarantee returns.

Complicated schemes involving unusual securities or foreign entities: While foreign investments are a common part of portfolio diversification, these investments should be made in established companies with clear business plans. It all goes back to the common saying, «invest in what you know.» Complicated plots involving offshore banks and industries you hardly know anything about should raise red flags. Why get involved in a complicated scheme you don’t understand? If you don’t understand the investment, how do you know you’ll earn a profit from it? Stick to opportunities that you can understand. If you’re eager to invest abroad, you can explore foreign ETFs through established firms while you research foreign markets more thoroughly.

One of the most popular stock schemes is called “pump and dump.” Schemers buy up a block of stock in a little-known company, preferably one with a buzzword-loaded name that seizes on trends. In 2020, those buzzwords could be related to areas like cannabis, crypto, or tech. With the buzzword stock in hand, the schemers begin flooding the internet with false rumors about how this company is on the verge of a breakthrough or merger.

In some cases, company insiders actively participate in spreading these false rumors. In other cases, the company has no idea the scheme is happening, and in effect, becomes another victim. Sophisticated scammers may even develop a phony letterhead and use it to send out press releases about the company.

If the scheme is successful, and unsuspecting investors are convinced that they’re getting in on the ground floor of the next big stock, the stock’s price will jump. As the stock price rises, the scammers try to decide when they think they’ve pushed the scheme as far as it can go. Once they’ve reached that point, they sell their original block of stocks, pocketing a sizable profit in the process. After that, the scammers will seek out another company to pump and dump.

Of course, after they’ve sold off the huge chunk of stocks and stopped spreading falsely positive rumors about the company, the company’s value will plummet. Anyone still holding the stock will likely lose most of their money, but the scammers don’t care, because they’ve already turned a profit and moved on.

This scheme can also be executed by shorting a stock. In that case, the scammers would short the stock, then flood the internet with negative rumors. When the stock drops, the short sellers cover their positions for a big profit.

The Bottom Line

With all of these schemes, the easiest way to protect yourself is to act slowly and research the investment opportunity through a variety of sources. When you see a story online about a company, look at who wrote it and where it was published. If it isn’t being covered by a mainstream financial news outlet, ask yourself why that’s the case. If an opportunity promises sure-fire returns, take extra time to research the company, the market, and the broader economy.

Schemes come in many forms, but they all have one thing in common: the promise of very high returns. The sad truth is that many people fall for these schemes because their greed overcomes their reason. Don’t let this happen to you. If an investment opportunity sounds too good to be true, it probably is.

The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

The Pioneers of Financial Fraud

What Is Financial Fraud?

Financial fraud dates back to the year 300 B.C. when a Greek merchant name Hegestratos took out a large insurance policy known as bottomry. In layman’s terms, the merchant borrowed money and agreed to pay it back with interest when the cargo, in this case, corn, was delivered. If the merchant refused to pay back the loan, the lender could claim the cargo and the boat used for its transportation.

Hegestratos planned to sink his empty boat, keep the loan, and sell the corn. The plan failed, and he drowned trying to escape his crew and passengers when they caught him in the act. This is the first recorded incident of fraud, but it’s safe to assume that the practice has been around since the dawn of commerce. Instead of starting at the very beginning, we will focus on the growth of stock market fraud in the U.S.

Key Takeaways

  • William Duer committed an insider trading scandal in the late1700s when he relied on his information edge to keep ahead of the market.
  • Ulysses S. Grant, the Civil War leader, created a financial panic in 1884 when he could not raise funds to save his son’s failing business.
  • In the late 1800s, Daniel Drew used techniques known as a corner, poop and scoop, and pump and dump to defraud stock market investors.
  • After the second world war, stock pools composed of the wealthy manipulated large stocks such as Chrysler, RCA, and Standard Oil until the bubble burst in 1929.

How Fraud Perpetrators Work

There have been many instances of fraud and stock pool scams in the history of the United States, and all of them expose devious schemes based on greed and a desire for power.

The first documented fraud occurred in 300 B.C., and it is unlikely that it will ever by stamped out completely because it is driven by greed and the desire for power.

The First Insider Trading Scandal

In 1792, only a few years after America officially became independent, the nation experienced its first fraud. At this time, American bonds were similar to developing-world issues or junk bonds today—they fluctuated in value with every bit of news about the fortunes of the colonies that issued them. The trick of investing in such a volatile market was to be a step ahead of the news that would push a bond’s value up or down.

Alexander Hamilton, secretary of the Treasury, began to restructure American finance by replacing outstanding bonds from various colonies with bonds from the new central government. Consequently, big bond investors sought out people who had access to the Treasury to find out which bond issues Hamilton was going to replace.

William Duer, a member of President George Washington’s inner circle and assistant secretary of the Treasury, was ideally placed to profit from insider information. Duer was privy to all the Treasury’s actions and would tip off his friends and trade in his own portfolio before leaking select information to the public that he knew would drive up prices. Then Duer would simply sell for an easy profit. After years of this type of manipulation, even raiding Treasury funds to make larger bets, Duer left his post but kept his inside contacts. He continued to invest his own money as well as that of other investors in both debt issues and the stocks of banks popping up nationwide.

With all the European and domestic money chasing bonds, however, there was a speculative glut as issuers rushed to cash in. Rather than stepping back from the overheating market, Duer was counting on his information edge to keep ahead. He piled his ill-gotten gains and that of his investors into the market. Duer also borrowed heavily to further leverage his bond bets.

The correction was unpredictable and sharp, leaving Duer hanging onto worthless investments and huge debts. Hamilton had to rescue the market by buying up bonds and acting as a lender of last resort. William Duer ended up in debtor’s prison, where he died in 1799. The speculative bond bubble in 1792 and the large amount of bond trading was, interestingly enough, the catalyst for the Buttonwood Agreement, which was the beginnings of the Wall Street investment community.

Fraud Wipes Out a President

Ulysses S. Grant, a renowned Civil War hero and former president, only wanted to help his son succeed in business, but he ended up creating a financial panic. Grant’s son, Buck, had already failed at several businesses but was determined to succeed on Wall Street. Buck formed a partnership with Ferdinand Ward, an unscrupulous man who was only interested in the legitimacy gained from the Grant name. The two opened up a firm called Grant & Ward. Ward immediately sought capital from investors, falsely claiming that the former president had agreed to help them land lucrative government contracts. Ward then used this cash to speculate on the market. Sadly, Ward was not as gifted at speculating as he was at talking, and he lost heavily.

Of the capital Ward squandered, $600,000 was tied to the Marine National Bank, and both the bank and Grant & Ward were on the verge of collapse. Ward convinced Buck to ask his father for more money. Grant Sr., already heavily invested in the firm, was unable to come up with enough funds and was forced to ask for a $150,000 personal loan from William Vanderbilt. Ward essentially took the money and ran, leaving the Grants, Marine National Bank, and the investors holding the bag. Marine National Bank collapsed after a bank run, and its fall helped touch off the panic of 1884.

Grant Sr. paid off his debt to Vanderbilt with all his personal effects including his uniforms, swords, medals, and other memorabilia from the war. Ward was eventually caught and imprisoned for six years.

The Pioneering Daniel Drew

The late 1800s saw men such as Jay Gould, James Fisk, Russell Sage, Edward Henry Harriman, and J.P. Morgan turn the fledgling stock market into their personal playground. However, Daniel Drew was a true pioneer of fraud and stock market manipulation. Drew started out in cattle, bringing the term «watered stock» to our vocabulary—watered stock are shares issued at a much greater value than its underlying assets, usually as part of a scheme to defraud investors. Drew later became a financier when the portfolio of loans he provided to fellow cattlemen gave him the capital to start buying large positions in transportation stocks.

Drew lived in a time before disclosure, when only the most basic regulations existed. His technique was known as a corner. He would buy up all of a company’s stocks, then spread false news about the company to drive the price down. This would encourage traders to sell the stock short. Unlike today, it was possible to sell short many times the actual stock outstanding.

When the time came to cover their short positions, traders would find out that the only person holding stock was Daniel Drew and he expected a high premium. Drew’s success with corners led to new operations. Drew often traded wholly owned stocks between himself and other manipulators at higher and higher prices. When this action caught the attention of other traders, the group would dump the stock back on the market.

The danger of Drew’s combined poop and scoop and pump and dump schemes lay in taking the short position. In 1864, Drew was trapped in a corner of his own by Vanderbilt. Drew was trying to short a company that Vanderbilt was simultaneously trying to acquire. Drew shorted heavily, but Vanderbilt had purchased all the shares. Consequently, Drew had to cover his position at a premium paid directly to Vanderbilt.

Drew and Vanderbilt battled again in 1866 over a railroad, but this time Drew was much wiser, or at least much more corrupt. As Vanderbilt tried to buy up one of Drew’s railroads, Drew printed more and more illegal shares. Vanderbilt followed his previous strategy and used his war chest to buy up the additional shares. This left Drew running from the law for watering stock and left Vanderbilt cash poor. The two combatants came to an uneasy truce: Drew’s fellow manipulators, Fisk and Gould, were angered by the truce and conspired to ruin Drew. He died broke in 1879.

The Stock Pools

Until the 1920s, most market fraud affected only the few Americans who were investing. When it was confined largely to battles between wealthy manipulators, the government felt no need to step in. After World War I, however, average Americans discovered the stock market. To take advantage of the influx of eager new money, manipulators teamed up to create stock pools. Basically, stock pools carried out Daniel Drew-style manipulation on a larger scale. With more investors involved, the profits from manipulating stocks were enough to convince the management of the companies being targeted to participate. The stock pools became very powerful, manipulating even large cap stocks such as Chrysler, RCA, and Standard Oil.

When the bubble burst in 1929, both the general public and the government were staggered by the level of corruption that had contributed to the financial catastrophe. Stock pools took the lion’s share of the blame, leading to the creation of the Securities and Exchange Commission. Ironically, the first head of the SEC was a speculator and former pool insider, Joseph Kennedy Sr.

Fast Fact

The first head of the SEC was a speculator and former pool insider, Joseph Kennedy Sr. The stock pools were held largely to blame for the bubble that burst in 1929.

The SEC Era

With the creation of the SEC, market rules were formalized and stock fraud was defined. Common manipulation practices were outlawed as was the large trade in insider information. Wall Street would no longer be the Wild West where gunslingers like Drew and Vanderbilt met for showdowns. That isn’t to say that the pump and dump or insider trading has disappeared. In the SEC era, investors still get taken in by fraud, but legal protection do now exist giving investors some recourse.

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