Learn The Inside Scoop of How Forex Broker Scams Work
Forex broker scams are happening all over the world. Due to the increase in technology, the frequency of them happening is at its peak. When hiring a broker, you can never be sure if the person is a fake or someone you can trust. However, if you figure out how these scams work, you can get into the minds of a forex broker and stay a step ahead of them. Being aware of how forex broker scams work enables individuals to know whether their forex broker is a scammer and how they can protect their money from them.
Forex brokers are basically people who are professionals in the field of Forex marketing and help you in making a lot of profit. These individuals have years of experience and know every bit of the market. While working with a broker can be handy for an investor, if their broker turns out to be a sham, they might just end up losing all their life savings.
Scam brokers have stolen more than $120 million in a year from well-experienced investors – so look out to who you are handing your money. Forex broker scams happen in various ways. People use different methods and techniques to scam people and run away with their money. They make you believe that they are going to help you in making a profit, but in reality, all they do is run away with your money.
For instance, they promote pyramid schemes, they act like they know all the knowledge regarding the market when in reality they do not, and they do not have any background history as well. They claim to be the best ones out there, but that is never the case. If you are someone thinking of hiring a forex broker, you need to understand how these scams work. Have a look down below at a couple of ways brokers might scam you.
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How Do These Forex Broker Scams Work?
Forex broker scams work in multiple ways. These people are experts in scamming people and know how to convince you to trust them. Their confidence is at its peak that it gets so overwhelming and makes you believe them. These scammers have scammed hundreds of people out there and use different methods to do so. If you are interested in learning about how these scams work, then keep on reading. We have made a list of some of the tactics these scammers use to scam you and run away with your money.
The first step these scammers make is to make you fall into their trap through heavy marketing as well as advertising on different platforms that you use. They use various marketing techniques to make you believe them. They have a lot of budgets set for marketing as they know this is the biggest way to scam people. Their marketing tactics also include sending people tons of emails as well as ads.
These ads are all about convincing people to get in touch with the broker that is going to help them flourish in the forex trade market. The ad convinces people that the broker is not even going to charge a hefty fee in return. It also highlights how the broker has years of experience in the field and knows exactly what to do. The emails they send are elaborate ones with lots of detail regarding their experience, which is all fake. The emails might seem copy-pasted as well. Each and every word written in the emails is nothing but fake.
Now, people who have been in the market for some time know that these ads are fake. However, young traders are not aware of such scams. They end up contacting the person and doing as they say. This is because they do not know how things work in the market and end up losing their investments, let alone know how to recover the assets. Scammers actually know very well that this is the easiest way to scam young scammers, which is why they use this method on a very large level and on almost every platform.
This is one of the biggest reasons newbies should do their research regarding the market when investing money. They can never be sure what might happen to their amount. When hiring scammers, they should ask around and keep in mind the different kinds of tactics these people use. Remember, these scammers are experts at manipulating people and know exactly what words to use to make people believe them. This is why it is important not to trust and contact brokers through every ad you look at or email you receive.
When you are investing in forex trading, one thing you need to keep in mind is that the market is a complex one. You can never be 100% certain about what might happen when you trade. This is the one factor most people forget when they are hiring brokers. Fake brokers market that they trade in a manner that you only receive profits, no losses at all. When an ad comes up using such words, then that is where you should understand that it is fake.
There is no need to trust the person now. Remember, marketing is so common in the world of forex trading that, at times, it is hard for people to understand whether it is real or fake. Even if an email you receive seems real to you, contact the person but do not hire right away. Do a thorough interview.
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Forex Account Managers
When choosing a forex account manager, you need to be very careful because this is going to decide whether you will make profits or go through loss. Sure, there are a lot of real managers out there, but the number of fake ones is too high. Now, in order to make sure you are in the right hands, then you can hire a forex account manager through a genuine broker. If the broker you opt for is reliable, then he is going to make sure that the account manager he is offering is reliable too.
To make sure you are in the right hands, it would be best if you learn some trading on your own as well. There are lots of trading platforms out there that can help you with this. The benefits of a managed forex account are high too. It is the best way for all those people to learn how to trade forex. The benefits of having a managed forex account are ample, but the main problem is that there are a lot of account managers who scam people. Such scams are much worse than forex broker scams in some ways.
Account managers use tactics to convince their victims into investing as much money as possible, even all their savings at times. Sounds absurd, doesn’t it? Well, they convince people that people actually end up investing this amount. At times, these people even suggest people take out a mortgage on their house or secure loans so that they can invest as much as possible. Once a person does this, then this means ruining their life for good.
Did you know that even a real forex account manager can wipe your entire account through incompetence? This means that an account manager has so much power, which is why you need to be highly careful when hiring someone. Now, to avoid such scams, it is important for you to differentiate between a normal managed forex account and a pooled one. A normal managed account is the one that is in your name, and the money directly goes from you to your broker.
However, in a pooled account, the money goes to your account manager, who is then in charge of pooling the money from different clients into a trading account. This account is then controlled by the manager. These pooled accounts are a lot more susceptible to scams. Anyone can make a fake account statement, and with a pooled account, you can never be sure where your money went.
Moreover, many of such accounts guarantee a huge return on investment; however, when it comes to forex trading, there are no such guarantees. Whoever makes such statements is going to scam you, that’s it. These forex account managers claim that their money is in good hands, which is not the case at all. These managers also scam people by investing their trades elsewhere, which is mainly going to benefit the scammer, not you.
Forex Trading Robots
We live in a world of technology where everything around us is now technology-based. Who knew 20 years back there would be robots and innovation would be on the rise. Sure, we did imagine stuff, but we never knew that it would become a reality. In the world of forex trading, a robot is basically a program that uses technical skills in order to enter into trades and make money while the trader relaxes. Once you press the button, the robot runs continuously and keeps on making trades through its mathematical algorithms.
In simple words, the robots run automated mechanical systems all the time. It doesn’t matter if the person is in front of the computer or not. The main problem is that these robots have pre-wired thinking, and they do not compensate for the changing market conditions. In the world of forex trading, anything can happen at any given time, and you need to be careful with making trades; however, that is not what these robots are equipped to deal with.
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Many robots are not made for all environments and recognize the change in the trading environment, which makes losses. These losses can actually be huge. In reality, the scam doesn’t really happen because of the robot itself but the way they are marketed. Scammers out there sell these robots and systems as if you will flourish in the world of trading once you purchase them. This is the main reason why they sell these robots for affordable prices, which vary from $20-$5000. Robot scams are happening quite commonly out there, yet people end up purchasing these robots, thinking that they will make tons of money once they invest in the robot.
It is a must for people to check the ability of the robot before investing in one. Remember, the robot is going to make automatic trades which means even while you are sleeping, the robot is in the process of making trades which can result in huge losses. The examination of a forex robot includes parameters as well as optimization codes. Now, if both of these are invalid, then the system of the robot is going to make random trades through buy and sell signals which are random as well.
This will mean gambling, that’s it. Scammers offer such robots and promise that you will be making huge returns with little to no effort. At times, they claim the robot is even able to examine the price volatility, which is not true. These sellers also add fake testimnationals on their websites in order to make traders believe them. Professional trades out there do not really suggest people use these robots; however, if you want to, you need to do your research and test the robot yourself to make sure it works.
Get Into The Minds of A Scam Forex Trader & Save Your Investments
The forex marketing environment is highly dynamic, and there are a lot of ways you might get scammed. Make sure to keep in mind the ones mentioned above and do your research regarding other minor ones as well. When you are investing in the market, you need to do your research regarding each and everything. It is not something that is easy. In reality, it is quite complex and hard to understand. TheClaimers tries to shine a light on people out there who are getting scammed in the market on a regular basis because of forex trading brokers. Remember, these brokers use the best tactics to make someone trust them, which is why it is important to be skeptical at all times and never ignore any red flags. It is best if you are careful at all times and keep all factors in your mind.
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