Spotting and avoiding all Forex trading or investing scam could save you a fortune if properly managed. In the reverse, it could take you from 100 to zero due to greed, ignorance, or no trading plans. Many people have lost their life earnings all in the name of investment that they do not understand. Leverage on your strength and not on your weakness. This means that you should only participate in what you truly understand or in extreme cases ask pertinent questions.
How to spot and avoid Forex scams.
In trying to recover your money, ensure that you do not step into the river twice because this is going to haunt you and make you depressed. Many second-time fraud victims find it difficult to cope. At this point, you have lost all and you are probably owing as well. You cannot borrow probably because your credit score has gone so bad that no reasonable financial institution would lend you money.
If you are already a victim, kindly compile all proof of the fact and run to a company that would assist you before it becomes so late. There are good companies that virtual currency recoup is their job. Do not listen to anybody telling you court litigation or bank chargeback if your case was majorly crypto payment. We previously shared some tips to get a chargeback from forex brokers scams, but this is for those who tried all, and nothing worked. The good news is, you can get your money back from the darnedest forex scam if you act fast enough
Well, under this type of situation, the only way you will be able to get your money back guaranteed is by pushing or tracking the broker to do so, let me break it down for you.
Normally the scammers work as affiliates with the broker. They either run with the rebate system, which means that they make a commission on the spreads, which is an ok system initially if they are actually making the client money, but since they don’t, they will trade as many lots as they can so they can get part of your money by sharing the spread with the broker.
The second type is running as the participant in the house. The main house is the broker, which will consume all your loss and they share some profit with the scammer. They will try to get you to deposit as much as possible and then take it all away using all kinds of methods.
Though with these two types of situations, type 1 will be easier to get your money back. You need to look into the broker’s regulation, either it’s FCA or ASIC and then file a complaint to the regulation, attach all the proof you kept including the conversation record, the deposit record, trading history, log file… etc.
Then the regulation will look into it and they will make the broker come up with at least a proper explanation or solution for this type of scam, since the affiliate works as a partner of their marketing, they are partially responsible as well. If they don’t their license will be canceled and will keep receiving fines till they finally resolve it with you. The broker can actually retain the scammer’s commission so there is no way that the broker can’t pay you, though you will need to look into the broker’s regulation first.
The second case will be a bit more complicated since they are playing as the house. With this type of method, the way you can do this will be to go to the local enforcement of the broker’s country and file a lawsuit against the scammer and request the broker as a witness first.
Then in court as you present your case you will need to request a refund first from the broker since the affiliate they are running with they will be able to deal with them under the table. If the broker refuses to pay then you may suggest changing the role of the broker to be one of the accused subjects as well. Though it will take up a long time to get your money back.
HOW TO AVOID FOREX TRADE SCAM
You must be getting the right education and you partner with trusted experts. There are a few red flags you should always look out for, particularly promises of unrealistic returns. Remember, while it is possible to consistently profit from trading, no one can guarantee results.
Keep your emotions in check
Fraudulent forex signals and companies often play to our innate greed. Everyone wants to earn a lot of money in as little time and with as little effort as possible. Keep yourself from getting scammed, and keep your greed under wraps. Traders often fall prey to predatory companies; they are promised high returns but fall for Forex fraud instead.
Select a trusted broker
Find a broker you can count on. Don’t give someone access to your equity unless you know that they’re reliable. Do your research. Security is crucial. Check his or her status with the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) if you’re in the United States. If not, find the corresponding regulatory body in your country, and verify that the broker you’re considering is legit before you ever give them a cent.
Forex trading signal scams
Another potential Forex scam involves automated forex trading software or Forex signal generating services that claim astronomical results from backtesting the product over a certain time period. Often, such time periods are carefully selected and then the system’s parameters are optimized to show high profits with low drawdowns.
A system may perform well in theory but not do nearly so well when exposed to a live trading environment. Other factors are presented when trading a live account, and items like dealing spreads and order slippage must also be considered. Although Forex signal software and trading robots are increasingly sophisticated, they still can run into trouble replicating the success of experienced human traders. That’s because these algorithms are unable to take certain factors into account.
Avoid unrealistic returns
Remember that unrealistic returns and guaranteed results of “earning without work” are the biggest fraud red flags when considering a Forex program. Whether you’re looking at a trading robot, signal service, or investment ideas, always remember to exercise caution when purchasing goods or entrusting money to others. High returns certainly attract customers, but unrealistic returns attract victims of Forex scam
If you lost funds to this scam, to recover your fully you need to file a case of recovery with a standard recovery firm.
