Identify scams in Forex trading

Unauthorised Online Risky Forex Trades 

The forex FX market determines the value of one currency against the other, and the investors can take a position in any major currency and wait to sell it when the values rise. It is a multinational business where you hedge or speculate on the price movement.

In the last few years, many new websites have been launched that present apps or platforms to trade currencies by registering on their sites where the user may be asked to pay a hefty membership, signup and education fee to view the educational packages offered at the time of registration or to enter the webinars related to mentoring.

These firms ask the members to sign up new members to get commission or the membership fee waiver.  The business of such trades is not like the traditional stock market or real estate. Long-term investment in stocks can sometimes get huge profits, but FX can lead to losses even after years. 

FX trade is legal, but many offer false deals through spoofing, front running or ghosting, which extends the overall risks creating greater opportunities for bogus promotional schemes, exaggeration of profits and failed efforts.

In addition, some traders/brokers use manipulative methods to receive funds into transactions that lack transparency; moreover, there are unclear regulations over such pursuits. 

Many unauthorised online firms promise to deliver huge profits in a short time. They invest on behalf of the client, ask you to invest your money to gain earnings, and encourage you to invest in unapproved deals; while you become eligible to get your money back, they suspend the account. 

To avoid losses, one should stay alert and be aware of the manipulations. They create clone sites offering bogus trading in the name of reputable institutions to get new buyers or ghosting. They create the impression of increasing profits in a specific position to get more funds.

The method of front running allows the broker to place their order before the client invests their money in the same. Some sites seek fees to tell you about the favourable time, and some use robots for automated trades.

You should always check the registration number of the firm to avoid being scammed. The firm's representative may ask you to contact on their number, but they may not be working on the address mentioned on the website of the reputed broker firm.  

Some such offices are based overseas and may be inaccessible, but they appear keen on delivering huge profits. 

How To Protect Yourself?

• To avoid losing money, one should ensure the broker is registered and follows a transparent trade method. In addition, it is advised to choose a broker from the country that offers legal support to the investors.

• First, check the registration details (FRN number) and the history of the firm. Then, check the warning list and call the consumer helpline number to know more.

• You should also gain information about the available options regarding the disciplinary actions in case of conflict of interest or alternation in business practices. 

• Always make a call on the numbers mentioned on the sites instead of answering emails.

• Those selling the refund scams claim they offer the service for a cost, and their fake lawyer will always mention the huge amount of money you can earn by hiring them.

• If you get a call from a lawyer who claims he can get the lost money back, you should become vigilant. Anyone who can get your money back will not call you and tell you to get your lost money in your bank by transferring a small fraction of fees into their account.  

• Many victims lost chasing such mirage of receiving a refund sponsored/advertised by a clone site.