It will take a trained eye to see a forex scam because of its complexity. But don’t worry. We are here to help you identify this type of scam so you do not fall victim.
What is forex trading?
Forex trading is the exchange of one currency for another. Currency exchange helps with international travel, conducting international business, foreign trade, etc. There are 180 currencies in the world. The need to exchange the equivalent value of one currency for another is why forex trade exists. Unfortunately, the forex market is unregulated, which has allowed the infiltration of scammers. The forex market is the largest globally because it is made up of every country’s currency.and also because today, Forex Scams are also offering traders the thought they are investing in stocks, commodities, and other securities. But, sadly, they are not investing in anything but merely lured into a forex scam.
The effects of forex scams on victims
We do not take the emotional impact of scams/frauds lightly. Victims of fraud go through intense shame and guilt for being so naive, and most of them end up in severe depression because of the loss. If you’re a victim, know that what happened is not your fault and the Global Payback is here to help you get back on your feet.
Types of forex scams to be aware of
As mentioned earlier, the forex market has no international regulatory body(or bodies), so there has been an alarming rate of scamming activities. There are regulations related to Europe, American treaties, and Asian ones. Still, no global authority to handle international forex scams due to the difference between the client location, the broker location, and the sales office performing the fraud.
So, unfortunately, you are vulnerable as a forex trader. However, you should be aware of some signs and types of forex scams, so you don’t be a victim.
Robot trading systems
Who wouldn’t want to be sipping mimosas on the beach whiles they keep getting richer due to their passive incomes? I would. You know it’s true, and the forex scammers realize it too, so they use the allure of earning extra money on the side as a sales pitch. In the robot trading scam, the scammers deceive you into thinking that their trading system is fully automated and artificial intelligence (AI) or robots will be breaking their backs for your success. It sounds like a quick, effortless way to make money, right? But, as much as robots may increase your chances of making a profit, these systems have not been tested, and there is no evidence of their legitimacy.
The forex market is volatile, and even the best computers in the world will not be able to predict a crash. Therefore it is unwise to place a bet on a system to decide your money and investments. Computers are not mistake-proof, so it will be best to take a second look if any forex trading company presents this idea.Binary options are a gamble. You either win or lose. That is why there are called binary options because there is no other settlement possible. It has become an increasingly popular financial instrument because of its simplicity. It allows traders/investors to gamble on whether an asset’s price will go up or down in the future. With this investment, you know what you stand to gain before trading.
How binary options scams work
It is common to see binary options fraudsters run social media ads that link to credible, legit-looking websites. The scammers will claim to be an international firm with a presence globally. Once the scam firms gain your trust, they will manipulate the system to distort prices and payouts. They will then close your trading accounts without paying your money.
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Signal sellers act like ”forex trade consultants”. They advise individuals and companies on the perfect time for currency pair transactions. They will charge an amount of money as a ”consultant fee” which may be a one-time or a recurring payment depending on how often you want to engage their services. They will make guarantees of a trade secret they are willing to share, and more often than not, these ”trading tips” are never fruitful.
How the signal sellers scam works
The scammers pose as legit signal selling agencies with fake reviews and a website detailing the enormous profits they have made for past clients. Once they are able to gain your confidence, they either provide you with information that never yields any results or disappear. These scammers do not have the expertise to be signal sellers, so take anything they say with a grain of salt.
Multi-level marketing forex scams
You are probably familiar with how multi-level marketing (MLM) businesses work. Unfortunately, some scammers have gotten the idea of using the MLM business structure to defraud unsuspecting victims of their investments. Scammers from forex MLMs and lure targets to pay a monthly fee in exchange for daily trade signals and forex educational materials. You will also be tasked with recruiting new members for a commission. One tell-tale sign of MLM forex agencies is the focus on getting more people and less on trading. Also, you will have to pay a fee to join the business.
Fake forex funds
Fake forex funds are becoming an increasingly popular method forex scammers are adopting. These funds assure you of huge returns on low-risk investments. They will show you referrals and financial quotes of large annual returns to prove that they are legitimate. But, of course, it is always best to stick to less risky investments.
Signs of a forex trading scam
Suppose someone sounds too optimistic and ambitious about projected profits. In that case, it may be too good to be true so tread cautiously.
Suppose the scammer refuses to give you background information or divulge detail about their profit and loss margins. In that case, it is most likely a scam.
Suppose you are being pressured to invest in something without time to ponder. In that case, it is a scam because most legit investments can wait for you to take as long as you want before investing.
How the Global Payback helps victims of forex frauds?
If you or someone you know is a victim of forex fraud, we ask that you act fast by contacting us because the time frame is essential and every day counts. Luckily for you, we have wealth recovery professionals on our team who know exactly how to get your money back in the shortest time frame. So contact us with details of your transactions and dealings with the scammers and leave the rest to us. We will help you recover your funds and get your life back.
While forex trading is legal, the industry is rife with scams and bad actors. As a result, investors need to do their due diligence before venturing into what can be a Wild West version of global financial markets.
Not necessarily because the market can be volatile. There is always the risk of losing money when trading a currency pair. In addition to the inherent risk linked to trading, you need to add margin trading and leverage with Forex trading. It means that you can trade large amounts with little initial capital.
If you’re asking, “Is forex a pyramid scheme?” then the answer is no. But pyramid schemes have been invented around forex – just like they have around the stock market and real estate and just about any other legitimate type of investment.
An old point-spread forex scam was based on computer manipulation of bid-ask spreads. The point spread between the bid and reflects the commission of a back-and-forth transaction processed through a broker. The scam occurs when those point spreads differ widely among brokers.