Forex Trading Scam
Forex has been a hot topic on the internet for years. However, the term “forex” also connotes scam, given the number of forex frauds that are exposed. So what is the real story about forex trading? Is it a scam or is it legit?
The truth is that it is not possible to simply say all of forex trading is a scam. Governments and huge companies engage in forex trading on a large scale, and of course, this is legitimate. However, forex trading risks are high and there are many forex trading scams advertised online.
There is no denying that forex trading is interesting and can be legitimate, but anyone who wants to trade forex should start by doing research on forex trading in general and on specific brokers. Those who have lost money to a forex trading fraud should contact a fund recovery agency to track down the scammers and to help them retrieve their funds.
Chargebax has the expertise and the right strategies to deal with forex trading scams. We consult with clients, gather information, and can track down forex trading scams as well as crypto and CFD fraud. Our working relationships with banks, government agencies, and law enforcement can help your claim achieve results.
What Is Forex?
Forex stands for foreign exchange and is trading based on the differences between the value of currencies at various times. Most of us are somewhat acquainted with the notion of foreign currency exchange through travel. We may decide to delay exchanging more currency until the rate goes in our favor. This is a small scale of what forex trading is.
Forex may sound rather simple but in reality, it is complex and is volatile. It is the largest market with $3 trillion in foreign currency traded every day. However, its size makes it more volatile, and it is important to look at and understand the risks of forex trading before engaging in it.
Forex Trading Risks
Aside from the dangers of forex trading scams, forex is inherently volatile and risky. When trading stocks, it is possible to research the fundamentals of the company and predict whether there will be an uptick in the stock’s value or not. However, it can be impossible to predict when a huge institutional investor or government will dump a large amount of currency onto the market.
In addition, some governments buy up huge amounts of their own currency to devalue it and gain a favorable trading advantage. The difficulty of predicting the currency market, the amount of money in it, and its quick fluctuations can wipe out a position without notice if there is a major event. Although this can work in the other direction and people can make a lot of money trading currencies, forex trading risks are substantial.
Forex trading scams take advantage of this perception of risk to encourage prospective investors to say “Why not?” If prospective traders feel that they could lose money anyway with a risky asset, they may not raise the alarm as much about forex trading scams. However, many people don’t realize how risky forex trading is, to begin with. The lack of knowledge about forex also contributes to forex trading fraud
How Do Forex Trading Scams Work
Most of us have seen ads for forex trading. Spam emails, social media, and YouTube ads often tout forex trading services with promises of miraculous returns. Most people ignore these and dismiss them as forex trading scams, yet many of these schemes make millions a year defrauding prospective traders.
How does a forex trading fraud operate? Partly through an understanding of consumer psychology and partly through classic scam methodology and the anonymity provided by the internet.
Signs of a Forex Trading Scam?
The following are common signs of a forex trading scam:
- No trading license
- Aggressive tactics
- Guaranteed Returns
- Will not accept credit cards as a payment method
- Pushes repeated trades, even after losses
- Do not allow withdrawal of funds without a huge fee
- Stops communicating
Of all of these warning signs, the one that deserves the most attention and will prevent the most damage is looking for a trading license. Unlicensed or poorly licensed brokers are responsible for many of the forex trading scams.
Unfortunately, since most people are not aware of the various types of regulators and which are the most reliable, it can be easy to fool a prospective client with a fake claim of a license or a license from a third-tier regulator. Therefore, it is important to check claims from a prospective broker. Visit the regulator’s website to ensure they are actually licensed and also research the regulator to see if it is a reliable one.
Keep in mind that no broker can guarantee returns, particularly on a risky asset like forex. If you notice that any trading deal or broker promises a certain return, scroll on by and do not pursue it further. This is a blatant untruth and should not be a basis for trusting someone with your money.
If the broker makes excuses when you ask to withdraw your funds or claims you need to pay outrageous fees, it is important to get a fund recovery agency involved right away. If the broker no longer communicates, that may indicate that they may have blocked you and a fund recovery agency can be helpful in tracking them down.
What to Do If You Have Lost Money in a Forex Trading Scam?
If you have lost money in a forex trading scam, it is imperative to contact a fund recovery agency. They can track down the forex trading fraud, uncover who is actually behind the operation and work with authorities to get your money back.
Why ChargeBax Is the Best Solution for Fund Recovery from a Forex Scam
ChargeBax has extensive experience dealing with victims of forex trading scams and other types of fraud. Chargebax experts have dealt with numerous chargebacks and have helped our clients retrieve funds from crypto scams, forex scams, and merchant frauds. We have a strong working relationship with banks, government agencies, and banks and will help you pursue your claims and achieve fund recovery success.