I recently started trading crytocurrencies via an CFD trading platform from an organisation based overseas and I am not sure if I have been scammed. The company has an all-in-one platform for digital currency.
This is how it has transpired.
After signing up, I was contacted by phone from a broker who wanted me to do an International Transfer via my banking online account, When adding a description on the transaction, I was asked to have it say 'personal/Other'.
I have transferred about $10k, the broker uses AnyDesk (not sure how secure this is) to remote to my machine and trade on my behalf on their platform, he has now made me about 22% in <4weeks.
He also said that the company can leverage me $5k to increase my buying power (he said that there is no interest in this leverage and when my portfolio has reached say 50k then I can withdraw my initial 10K and then he can use my profits to trade.
I find it a bit strange that they trade on my behalf, is this common practise?
Also when a company uses leverage is there a Intrest on this as say when you get a personal loan?
They also charge no fees as they make a profit when trading your shares based on a $50 spread per cryptocurrency.
If any one can answer these questions or provide insight into this situation that would be great.
On a side note how does the ATO treat CGT when dealing with an international organisation?
