Forex trading is more popular than ever as platforms offer easier access to international markets and better tools to use them. With over $5 trillion in daily turnover, the forex market’s 24-hour availability makes it incredibly popular worldwide. However, the ease of access comes with some pitfalls, especially when it comes from forex trading platforms that aren’t always regulated, or properly compliant with existing laws.
These online trading companies often put on a façade of respectability and reliability, but even the most careful retail traders are not immune to the many scams the market has spawned. It’s important to note that while the market itself is not illegal or unregulated, “over-the-counter” FX trading platforms create multiple gaps that permit scams to flourish.
If you’ve been scammed or have lost money to these platforms, it may seem impossible to deal with their obscure customer support systems and recover your funds. Nevertheless, there is hope out there, and you can find ways to work within the system to get justice, and your funds returned. From using services like CashRecoverPro to attempting the process on your own, you can always find ways to defend yourself. Being aware of scams and having the right channels to report misconduct also helps. Read more below to see how you can get a refund if you’ve been scammed.
If you’ve tried to deal with Forex trading platforms after you’ve been scammed or have lost significant money to obtuse schemes, you know that it can be nearly impossible to achieve resolution on your own. This doesn’t mean your case is hopeless, but you may benefit from professional assistance to expedite the matter.
CashRecoverPro offers services that take the process out of customers’ hands before handling the activity on their behalf. This includes reviewing the details of the case, collecting the required documentation and proof, and confronting companies themselves. When you sign up for the service, you gain the assistance of trained experts who are well-versed in dealing with these cases and have experience to accompany their high success rates.
However, before you contact CashRecoverPro, the first step is knowing if and when you’re being scammed. These are some of the most common scams you should be on the lookout for if you’re trading in forex markets:
Signal Services: For retail investors, knowing how markets will move and when to make trades is valuable knowledge, and many companies are happy to offer solutions. However, this opens the door for one of the most common types of scam. Signal services purportedly sell access to trade ideas and advice, but really are only extracting money from customers. Some of the most common signs of a signal scam include:
High Yield Investment Programs:
These trading systems are often nothing more than glorified Ponzi schemes. They start by offering an unusually high rate of returns for a suspiciously low small initial investment. However, these funds are only used to pay out original investors, and once no investors arrive, the funds dry up and the schemer will flee with the money.
Forex Robot Scams: Another popular tool being offered these days for traders are Forex robots, which are computer programs designed to automate trading and execute transactions faster, theoretically improving trading outcomes. While they’re not always scams, there are some red flags to watch for:
Unrealistic marketing messages that distort what forex robots do Abnormally high ROI numbers that are too good to be true They use undiversified scalping methods that result in minimal marginal profits to inflate their success statistics They require or suggest that you use unregulated brokers for the “best results”
Spread Markups and Commissions: In these cases, unregulated brokers can manipulate the bid and ask prices on their platforms by adding a markup to widen the spreads being paid by customers. By expanding the spread, they earn more for every trade. It’s becoming less common, but it’s still worth looking out for with unregulated brokers, or those with regulation in notoriously weak countries. Another curious development is that spreads are kept intentionally tight, but brokers will avoid highlighting the high commissions being charged despite the very narrow spreads. Although not technically a scam, it can be viewed as a predatory practice.
Even with all the risks in the market, you can still trade forex without falling victim to scams. To do so, you need to be aware of potential warning signs and red flags, as well as do some careful digging. Here are some things to know to protect yourself from forex scams:
Offers that sell “trading systems” and educational material with no proof to back it up. Forex trading is results-driven, and every transaction leaves a clear record. Companies that can’t back up their “amazing” offerings with real audited results are likely selling you snake oil and unreliable trading solutions.
Programs that offer you returns that are completely unrealistic. Even the best forex traders tend to have a “losing record”, that is, they don’t succeed on most executed trades. Professionals traders commonly return between 10% to 15% annually. Be careful of traders and sellers that promise you 40%, 50%, or other outlandish return rates.
Trading platforms that encourage highly leveraged trades. While leverage can be a useful tool in some cases, even professionals can struggle to harness it properly. Leverage allows you to stretch an accounts capital, but while it can magnify gains, it can also do the same for losses. Scammers are eager to let you trade with leverage that surpasses 100:1 and even more so that despite your upside potential, the risks are exceptionally high.
Websites that offer little to no information about regulation and compliance. Today, most exchanges and trading happen under regulatory licensing available from government sponsored or supported agencies. Platforms that are regulated will always list where they are licensed, and the steps they take to comply with regulatory measures. Websites that willfully hide this information or completely ignore it should set off warning bells.
Companies that ask for too much sensitive information. As a rule, you should never trust strangers online. Websites that ask for too many contact or personal details to accompany banking information are likely trying to access your personal accounts.
Scams are, unfortunately, an inevitable part of online financial trading. While much of the industry has become regulated and more reliable, there are still those that choose to profit off others’ lack of experience and ignorance. Still, it’s not the end of the world if you fall victim to a scam. You can always stay vigilant by looking out for the tell-tale signs of a scam and be ready to react if you feel you’ve fallen victim. Additionally, you can hire the services of CashRecoverPro to help you navigate the tricky recovery process to get you the settlement you deserve.
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