Forex Fraud and Mortal Lures of Irresponsible People

Forex Fraud and Mortal Lures of Irresponsible People

Forex fraud is mostly done by people on certain grounds and sometimes for their own sake. Recently forex trading has become very popular and many stock traders are moving their money from the equity market to the forex marketIndeed, the forex market is claimed to have a lot of money in a fairly short time.

Forex Fraud

Forex Fraud and Mortal Lures of Irresponsible People

Because most forex traders do not have an in-depth understanding of how the forex market works and what the forex broker’s function is, it is quite easy for forex brokers to fool traders through several fraud schemes. Even many experienced traders fall because of forex broker fraud that is well formulated and implemented.

This forex broker fraud can come in various forms, but the end result is the same, that is, traders will lose their money and the forex broker’s pocket is full of funds from traders and they will usually run away before being caught.

Forex is the largest trading market in the world with around $ 3 trillion in funds changing hands every day. Most forex trading is sold freely on the cash register and there is no accountability. Over the years, fraud has come and gone. With serious actions from the CFTC (Commissions on Securities Trading Commodities) and the formation of 1982 national regulations, many popular frauds have long been stopped. However, the new is always ready to fill the void left by the old.

OLD FOREX SCAMS

Forex broker fraud that was implemented in the past involves the manipulation of bargains / requests for computer spreads. The bottom line is the spread between the price of the offer and the request basically reflects the commute commissions that are processed through the broker. The point is that spreads are very different between brokers and differences between currency pairs.

Because brokers usually do not offer spreads of two to three normal points in USD / EUR for example, but the difference is seven pips or more then any potential profits generated from investments are well eaten by the commission.These commissions find themselves in the broker’s pocket.

At present it is not unusual to find a broker who claims he is taking a commission. But don’t be fooled by this promotion. He is still making money from the spread spread that is now set only smaller spreads are allowed. However, there are still retail forex brokers that are not regulated by CFTC, NFA or their home countries and it is quite easy for these companies to pack and disappear with their money when facing investigations of irregularities.

Many US-based offenders are still ready to deceive traders with various types of fraud. And believe me, forex broker fraud never disappears altogether.

MERGER

Forex fraud is then a merger carried out by brokers. Another subversive scheme used by some forex brokers is the merging of funds. Individuals cannot track the actual performance of their investments without their unique account records.merging funds provide the opportunity for forex brokers to pocket most of the investors’ money without being noticed by their clients. Brokers get financial benefits during trading and eventually disappear with client’s money.

Actually there are several ways that traders can use to find out about this kind of fraud like brokers do not allow money withdrawal money. In addition, the guarantee of high performance levels that are usually higher than those offered by brokers must also be viewed with considerable skepticism.

AUTOMATIC TRADING SYSTEM

At present most of the forex broker scams are trading systems. Most of these systems have not been tested by independent sources for formal reviews. Their trading system optimization parameters and codes are usually invalid and in the end this system generates random buy and sell signals.

TRADERS ALMOST ALWAYS LOSE

There are many brokers out there that promise the world but not with their realization. They perpetuate the illusion that has been established that forex is just a form of gambling without understanding or thinking needed. Forex scams are often heralded by many people who have just entered forex.