How to Avoid Forex Scam Traders
Getting involved with Forex trading may be exciting. However, there are a few pitfalls that you must be aware of to make sure that you don’t get scammed.
High yield investment programmes (HYIPs)
HYIPs are an investment program that promises high returns in a short period of time. Some programs offer returns of up to 1% per day. Depending on the initial amount of money invested, these returns can be large. However, these high returns can also be high risk. It is important to be cautious when investing in a high yield investment program.
HYIPs are typically promoted on social media sites, such as Facebook and YouTube. The scammers use these sites to lure people into their programs. The programs are also promoted in the media and on the Internet.
HYIPs are typically run by unlicensed individuals. Some HYIPs are even operated offshore. Most HYIPs do not provide much information about their owners and operators. This lack of transparency creates a perfect environment for financial diseases.
Exaggerated returns on small investments
Despite the numerous fraudulent forex brokers out there, the market is still viable for the savvy investor. But for the uninformed, the market can be a dangerous place.
Fraudulent Forex brokers use various tactics to lure unsuspecting investors. These include sophisticated-sounding offers, complicated jargon, and the concept of leverage. Leverage allows a trader to control large amounts of foreign currency. Combined with the right predictions, leverage can offer significant returns over a short period of time.
In the past, the forex market was known to be a scammer’s playground. The good news is that this is changing. Fortunately, you can protect yourself from being a victim of the forex scam by understanding the pitfalls of the trade.
The best way to do this is to read up on the market and take advantage of the myriad educational offerings. For example, a number of universities offer Forex courses for undergraduates.
Demanding immediate action from you
Using a Forex trading simulator to trade your 401k for a pound of flesh is no small feat. Those with a modicum of foresight have the upper hand, although not a full on boot smashing session. If you’re not up for the task you can always try and do it the hard way. The Forex business is a great place to make a splash. Despite its high profile, the industry remains nefarious to say the least. Hopefully the above mentioned snobs will learn to take the bait in the name of equanimity. It is also a great place to scout for a nice ride. There’s always a reason to scout the night. After all, the night is usually a great time to be a night owl, especially when the locals are slumbering away.
Getting your money back
Getting your money back from forex scam traders can be difficult. These traders may come in with offers that appear to be legitimate but have a shady past. There are ways to identify them and to recover your money.
The first step is to talk to your broker. Your broker should be able to tell you whether the forex broker you are dealing with is reputable. You should also contact a regulatory body in your country.
Another option is to file a chargeback. This is a process by which you can ask your credit card company to reverse the payment for a fraudulent transaction. This can help you get your money back from forex scam traders.
You should also consider contacting the Commodity Futures Trading Commission (CFTC). These agencies are responsible for regulating the forex market. The CFTC will investigate and help you get your money back.