Online trading scams are more and more common nowadays. With Covid-19 and job losses all around the globe, people were forced to look for a secondary source of income. Fraudsters spotted their chance to exploit helplessness and started opening scam trading websites from offshore countries or entirely anonymously. Of course, once you talk to them, you will be convinced that everything is legit. You may even get a false address or a fake regulation number.
However, once you want to file a complaint or try to get your money back from a regulator, you’ll understand that your alleged broker is nowhere to be found.
That’s why we’ve decided to give you some guidance about the leading online trading scam types and how to avoid them.
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How to Keep Yourself Away from Forex Trading Scams?
The easiest way to recognize a scam broker is by seeking a regulation number. If the person on the other side starts stuttering and mumbling instead of giving you a direct answer, you’re being lured into a scam. Furthermore, even if you do get a license number, make sure to visit the regulator’s website and check it out. It can’t hurt to be extra cautious these days.
Another way to determine whether you’re dealing with a legitimate investment firm or not is by checking reviews. The beauty of the internet is that anyone can leave a comment. And those who have been defrauded are especially dedicated to exposing scammers.
So, make sure to check a couple of websites for Forex broker reviews and compare them. If everything seems legitimate, you can continue.
Also, you can ask your brokerage for a Demo account first. Those who are just after your money will try to convince you that nothing good can come out of your practice since you can get overconfident, etc. Yet, don’t give up. Most regulated and legit brokers allow their clients to “feel” the market before investing money.
And, of course, trust your instinct. If something seems too good to be true, it probably is. Suppose you have seen one of those fake ads promising thousands of dollars overnight from an investment of $250.
If your gut tells you not to go there, the best would be to listen to it. You can save yourself a lot of time and nerves by avoiding the scam broker’s bullet.
About Trading Scams
There are several kinds of online trading scams. Ever since binary options have been restricted in the EU and the UK, other types of trading have increased in popularity. And with the increased number of investors, we’ve got higher interest from scam brokers to participate in the market and take their share.
Currently, the two most popular online trading scams are the Forex scam and the cryptocurrency scam.
1. Forex Scam
A Forex scam is a scam conducted mainly by unregulated and offshore companies providing Forex trading. Basically, you will be convinced to invest your funds with such firms and promise high returns. Once you give your funds, you’ll be dragged along by the alleged account manager, who will pretend to assist you while pressuring you for more money.
Once you are done paying and request a withdrawal, you will either be delayed or will no longer be able to access your trading account.
2. Crypto Scam
Ever since Bitcoin gained value back in 2017, cryptocurrencies have been the main asset. Fast return motivates many people to invest and hope for the best. Again, unregulated and offshore firms use this to lure you into depositing money while promising you different software and AI for predicting the market.
Everything will sound so logical that you will have no reason to doubt it. However, once you wish to withdraw the profit, you’ll understand that it was all a scam, and your money will simply disappear.
Both of these scams can be conducted through different wallets, platforms, trading software, and more. Be very cautious with your money and ensure you’re going into legitimate business before investing anything.
If you fall victim to any scam brokerage, let us know. We may assist you to get a refund of your money and file an official complaint against scammers.
Also read: Proper Methods of Cashing Out Profits in Cryptocurrency Trading
