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Thread: Forex Fraud

  1. #1
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    Forex Fraud

    What is Forex Fraud / Broker Fraud?


    Even those who have been in the game a long time might not have an understanding on how brokers can scam you out of your hard earned cash. Here are some ways which they do it.


    Targeting the Gullible & Not Even Placing Your Trades


    Some fraudulent brokers don't actually make the order which you've placed. They pocket that money hoping you 'lose' all of the money which you've put down. As most people are impatient and don't exercise self control; given leverage where they can control up to 500 times their starting capital and the promise of making tens of thousands in months from your initial $2000 deposit, it's no wonder that most people crash out of the market. These companies, if you could even call them that, are fraudulent operations suckering in the gullible, 'money blind', individuals who inevitably go on to lose all their money. For good traders who have made money in their account may (or they may actually get a successful withdrawal) run into problems. The fraudulent broker may manufacture an excuse why they can't pay you, or state a reason why your trade wasn't eligible i.e. 'scalping'.


    The CFTC (Commodity Futures Trading Commission) (United States) has stated "among them solicitation fraud, a lack of transparency in the pricing and execution of transactions, unresponsiveness to customer complaints, and the targeting of unsophisticated, elderly, low net worth and other vulnerable individuals."


    Other Forex Fraud


    ...May include:
    • Ponzi Schemes
    • Misleading or False Advertising
    • Managed accounts which are not professionally/properly managed
    • Shady pricing practices in executions & transactions
    • Withdrawal problems
    • Software to profit in Forex which doesn't work (and the seller knows when their software doesn't work yet they still sell it)
    • Stating Forex is a low risk investment with high profits. Some comments may include, 'Easy way to make $400 a day'. It would be easy to make $400 yes, with the right strategy, risk management, knowledge and account size; yet the probability of making $400 consistently from a small $3000 account is near zero.


    What does the National Futures Association have to say?


    "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically."


    Closing FX Fatcat Comments


    There are sharks out there to take your money. These include Forex brokers, Forex services, Forex Signals, Forex Software and also other traders who want the money in YOUR account. Forex is a near zero sum game (we say near zero because the broker takes their commission, so one actually starts with a negative). By zero sum we mean the money you make comes from someone else and the money you lose goes to someone else.


    Keep your wits about you, use wisdom, keep on your toes, do your due diligence in researching all the aforementioned, and last but not least, from all of us at FX Fatcat: Trade safe, always.

    Markets can remain irrational longer than you can remain solvent.

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    Thank you for the advise/tips, most especially for reminding.


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    Forex trading is gaining popularity because of its ease of making money. People if apply their basic knowledge with some experience they can take good decisions with Forex and get lots of profit out of it. But sadly, there are many scams running around which are fooling innocent aspiring traders. By reading this post I want to say that we must share it and spread this awareness among all the people who are into Foreign exchange.

    A person should not invest the cash in hurry. Do proper research to avoid losing your hard earned money!

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    This is really useful information. Because people often want to get money so strong, that they can believe to everyone, who promises them money.


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    It is wise to spend more time in selecting the best broker. There are certain issues about secure online trading that you should take into serious consideration like transaction cost and entry execution rate are the important key for my successful trade. I trade with ECN account type at Tickmill broker, in related on spread it has to favor short term trading method such scalping. ECN brokers get pricing feeds from multiple institutional market participants and display the best quote on their trading platform. With quotes flowing in from numerous institutional sources, spreads on the bid and ask can get extremely tight and can even reach zero. This tight to zero spread pricing will particularly benefit both scalping or day trading activity.


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    Less information is the main reason of being a victim of such scams. You need to update yourself first and then start your business so that no one can befool you. You can contact me for more information on business tactics and increasing online sales @ SellingOnlineToday


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    Quote Originally Posted by jammiecutts View Post
    Less information is the main reason of being a victim of such scams. You need to update yourself first and then start your business so that no one can befool you. You can contact me for more information on business tactics and increasing online sales @ SellingOnlineToday
    Yes people just want to trade and earn money without being taking care of genuinity of the broker, there are regulations but the strictness of it depends from country to country.


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    Reading about the frauds in Forex I'm afraid to start my career in this business field. Thanks for writing down all the information about earning money using Forex and tips to be safe from frauds and cheaters.

    Check out free online ads sites here - buysellcart(dot)in

  9. #9
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    There is no doubt that there are frauds in the market, but in any business it is there, Its your way of dealings with these things dont fall for exaggerated claims and try to engage with real brokers.


  10. #10
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    Quote Originally Posted by vic84 View Post
    There is no doubt that there are frauds in the market, but in any business it is there, Its your way of dealings with these things dont fall for exaggerated claims and try to engage with real brokers.
    There is definitely a way to dealing it and that’s through Winchargeback, as it was not long ago for me to be stuck in binary option trading scam, but I got my life back thanks to them. I tried doing everything to get my money back or even have some sort of settlement, but the broker never allowed it. So, I went ahead filing my case in front of Winchargeback Company and set out all the data/proofs, it was just 10-12 days within which my case was not just studied, but was SOLVED! Therefore, I received my money back with ease!


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