Forex has been touted as an excellent way to make money fast. However, it does have its downsides and risks. Aside from the inherent volatility of the forex market, there are many forex frauds as well as forex withdrawal scams.
You may think you have made a lot of money with a forex broker only to find they won’t release your funds. If this happens, you will need assistance to get your money back. First, you need to approach regulators and authorities with information and an in-depth statement of your case.
Cryptocointrace experts can provide you with assistance if you have been affected by a forex withdrawal scam. Our team of researchers knows what to look for when investigating a crypto or forex trading scam. We can provide you with information and guidance through our intelligence reports that will help you get results. Contact our Cryptocointrace professionals today for a consultation.
Forex is short for “foreign exchange” and involves trading currency pairs, for instance, the US dollar and the Euro. It is the world’s most active market with several trillion in transactions per day, but it is also among the most volatile. The value of a particular currency can change in minutes after a disaster or an election or some other development.
Despite the risks, it is possible to make money on forex. Large, institutional investors have an advantage in this market, but individual traders can make some money if they gain experience and learn how the markets move. However, forex withdrawal scams do not target these traders because they are more sophisticated but they focus on novice traders who have heard that they can make a bundle fast on forex trading.
Forex trading is risky. That is one reason why people enjoy it. Trading currency pairs can be more exciting for people who like fast trades than buying and holding blue-chip stocks, for instance. Understanding these risks can help consumers avoid forex withdrawal scams because it can keep them from believing the extravagant promises fake brokers give them about guaranteed high returns.
The first step is understanding that, given how volatile the forex market is, there is no such thing as guaranteed high returns. Any broker who promises to make a certain amount of money for a client in forex is probably a fake and should be avoided.
Currency can turn on a dime. A government may take action to buy up currency without warning. This can send shockwaves through the market. A seasoned forex trader could hear the economic report from a country and predict this, but if this report is released in another country while the trader is bed, they could wake up to see huge losses in their forex holdings.
This is why forex is appropriate for fast trades, but it can be hard to see how the currencies are going to be affected in just one day. In addition, large investors move the market wildly which can be frustrating for an individual trader.
Forex is a risky and volatile type of trading that is not designed for people who can’t afford to lose their investment. Unfortunately, these are the type of people targeted by forex trading withdrawal scams.
The volatile nature of the market is not a drawback for these fraudulent schemes, but a kind of advantage. They address the fact that forex is risky and promise to be a guiding beacon to novice traders and will help them win in the competitive forex space.
Forex withdrawal scams would not flourish if there were not a multiplicity of desperate people trying to make fast money. There will always be a large number of consumers who will look to risky methods as a way out of financial predicaments and they tend to fall for these scams without doing thorough research on a broker first.
That is where the services provided by Cryptocointrace are valuable. Our team of experts will consult with you and help you determine whether a broker is legitimate or not. In addition, our reviews provide guidance on which brokers to look into and which to avoid.
For those who don’t mind the inherent risk of CFDs, it is important to trade only with a well-regulated broker. Research brokers and find those with high caliber licenses. If you work with a regulated broker, you will have recourse in the case of a broker complaint or a CFD scam. A regulator can do their own investigations and take disciplinary actions against the broker.
However, if you trade with an unregulated broker, you have only law enforcement that can help you and not regulators. This may seem alright, but keep in mind that the authorities are often overloaded with CFD scam cases and it may not have much time to spend on your case.
Law enforcement may be sufficient, but it is important to act fast in the case of CFD scams. Those who perpetrate financial fraud tend to hide behind multiple identities and are experts at laundering money. If the broker has some accountability through a license with a regulator, they are less likely to disappear and are more likely to return your funds given the right kind of pressure.
The best way to avoid forex trading scams is to work only with a regulated broker. While you are at it, insist on the only top-tier broker. Avoid those that have a third or fourth-tier license. The higher the quality of license, the more likely the regulator has checked out the broker to ensure they are legitimate and the more accountability the broker has. The regulator can fine or take the license away from a broker if they need to. This protection is essential.
There is no absolute guarantee that a well-licensed broker will not behave fraudulently or that there will never be a dispute with them. In these cases, you need to consult with Cryptocointrace professionals who can draft an intelligence report that can aid authorities dealing with the forex withdrawal scam.