Forex is an exciting market that deals with something that is relevant to everyone’s life–currency. However, even though we all deal with currency, that doesn’t necessarily mean that forex trading is easy to understand or profitable for everyone who is just starting out.
Unfortunately, few consumers realize this when they sign up with a forex broker. Many are promised that they will make double-digit percentage gains in a short space of time. Forex is often touted as an easy way to trade and that you can get access to your gains fast. However, this is only part of the picture and is based on distortions perpetuated by many unregulated forex brokers.
Because of this problem, our experts have evaluated forex brokers and have compiled a list of those to avoid. Many of these brokers are unregulated, although a few may have solid licenses and are simply behaving in a manner that does not befit a legitimate trading service.
Before selecting a forex broker, it is important to do research and understand the difference between real forex trading and fraudulent forex brokers that simply want to make money through client fees without using their money for real trading.
If you are trying to get a withdrawal from a forex broker scam or have a complaint, you need a team of experts who can ask thorough questions, follow the right leads and do a complete investigation into the incident. CryptoTrace works closely with regulators and authorities and can find information that will be useful to them and ultimately to you.
Forex is incredibly popular and was top on the list of online trading services before recently taking second place to cryptocurrencies. However, forex is still number one in terms of the size of its market. There are $6 trillion in forex trades made daily from individual traders to businesses and governments buying and selling huge amounts of currency.
The huge size of the forex market keeps it in the public eye and guarantees a certain amount of popularity. Another possible reason why forex trading is always trendy is that people feel confident that they understand it and can make money at it.
One reason for this confidence is that it is concerned with the fluctuation between currency pairs. Basically, traders bet in favor of one currency and against another. This is a relatable situation for anyone who has had to convert one foreign currency to another and has waited for a better rate. In a sense, this is an application of the concept behind forex trading.
However, exchanging money on a European vacation is not really like forex trading. The real forex market is incredibly fast paced and it never sleeps. Traders who go to sleep with a winning trade may find it wiped out in the morning because a country’s government decided to buy or sell a large amount of currency.
Unless one keeps track of all of the world’s current events, it is hard to foresee a move like this, at least for novice forex traders. There is no guarantee that a cataclysmic event or a decision by a government won’t render a trade worthless.
In reality, it can be quite stressful to follow the forex market and it takes a significant amount of trial and error before a forex trader starts to make some money.
However, unregulated forex brokers would have prospective clients believe that profits can be made in days and that forex trading is something everyone can understand. Worse yet, they guarantee certain returns, when in a volatile market like forex, there are no guarantees.
No two forex scams operate the same way, but in creating this review and in our work with broker complaints, we see many forex scams and the following account is a typical case.
A forex broker who has no license, but may have a flashy website, attracts customers through a social media ad that says anyone who clicks on a link can make a forex trade that is guaranteed to double their money in 48 hours. The customer is intrigued, decides to take a chance and clicks a link that leads them to the broker’s website.
They may see a bot or a form that will ask for all of their information, including email and possibly bank account information. They will be asked to open an account to take advantage of the deal. The customer may find that they can’t fund the account with a credit card, but only with cryptocurrency (which they can pay for using a credit card) or a bank wire transfer.
Two days later, when they were supposed to have doubled their money, the forex broker will tell them their trade was successful, but there is a rule that they can only make withdrawals the first week of the month and it is the middle of the month. In the meantime, if they make additional trades, they can make even more money.
The broker will tell them they made or lost money on trades, but each time, they ask for more deposits. When the first week of the following month comes along, and the customer asks for a withdrawal, the broker may tell them there is a technical problem with their account. Without warning, the customer may be locked out of their account and unable to access their money or communicate with the broker
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The previous story is unfortunately quite common. These are some red flags, and if any broker fits this description, avoid them:
If you have deposited money with any of the brokers on the following list, ask to withdraw your money right away. However, if they do not honor your request to withdraw money, talk to CryptoTrace immediately.
Don’t go it alone. Crypto Trace experts have worked with numerous clients who have a broker complaint and want to retrieve funds. Consult with Crypto Trace experts today and provide a full account of what happened so we can get started drafting an intelligence report. The sooner we can help you, the more likely your crypto scam complaint will be met with positive results.