Scammers are targeting foreign exchange investors and proposing fraudulent schemes. Cyber-Forensics.net explains everything traders need to know before investing in the forex market.
The foreign exchange market is an over-the-counter marketplace that determines the exchange rates of various currencies globally. Given its ability to empower small bankers to large business organizations, the potential benefits of the forex market consistently attract new traders. And along with it, an unwanted set of clans: scammers.
Cyber-Forensics.net, a cyber forensics service for online scam victims specializing in forensics recovery, notes that the forex exchange market’s high liquidity, market transparency, dynamic function, and all-time availability make it an advantageous adventure. The platform operates on a few restrictive rules, with no central bodies and no commission that allows fraudsters to run their fraudulent schemes freely.
Peter Thompson, Fund recovery specialists at the firm, studied a high-profile forex trade scam involving a Florida-based trade group. When investigated, officials found the firm responsible for initiating a long-running fraud scheme between June 2013 and June 2020. Further probing by the Civil law enforcement revealed that the firm had cheated at least 220 customers and was charged for fraud and misappropriation of over $19 million forexes.
Cases like these have attracted worldwide attention and given life lessons to traders looking to grow. However, Timothy Benson, chief analyst at the same firm, suggests not to take any decision without gaining insight into forex market activities. When interviewed, he gave some tips for traders to avoid falling into forex scams:
How to Avoid Forex Scams?
Chief analyst Timothy Benson says, “Investors can easily avoid forex-related fraudulent schemes by verifying a company’s or broker’s registration with Trade commissions before investing into their schemes.”
If unregistered, the investors or individuals stay alert and avoid providing funds to such entities. A company’s registration status is usually available at available resources online. The platforms allow investors to research the background of industry professionals.
Avoid Flashy Websites for Forex Trading: Remember, “all that glitters is not gold.” Therefore, it is wise to avoid going to flashy websites that offer atrocious rates of returns and promise enormous automatic benefits in no time.
Never Underestimate Transparency in Forex Trading: Whenever considering any forex trade service, double-check the fees or commission charged by online brokers, get details of the market trends, and read about schemes correctly. Look for possible red flags like significant returns with guarantees, companies promising no-risk policy, etc. Never invest in any project at its face value.
What Do Investors Need to Know Before Investing in Forex Trading?
- Understand the business needs
- Start small and be specific
- Stick to the plan
- Begin with the right mindset
- Beware of existing scams and keep an eye on the forex market
- Analyze market performance before investing
- Choose a reliable forex broker
How to Choose a Forex Brokerage Service?
Two of the most important factors to consider before choosing the right broker are 1) Pricing and transaction expenses. With fierce competition among top brokers worldwide, Investors now have access to institutional-grading pricing with forex spreads (difference between broker’s sale rate and buy rate) as low as 0.0 pips at flat-rate.
Some brokers may also facilitate flat rates with round-turn commission costs compared to standard accounts with higher spreads. Typically, it’s a good idea to examine the fluctuating spreads rates for the financial products the customers want to trade before they decide to hire a broker and set up a variable spread account type.
Credible broker service can help with fast execution, minimum slippage, and a profitable trading strategy in the forex market. Another aspect to look for in a good forex broker is to ensure their 2) Financial regulations align with state-governed protocols.
Also, consider the following points when researching a forex broker:
- Regulatory Compliance
- Currency Pairs Offered
- Account Type and features being offered
- Customer service
- Trading Platform being used
- The benefits
What To Do If Scammed into a Forex Trade Scam?
Cyber-Forensics.net’s fund recovery expert Timothy Benson has actively talked about what resorts forex trade victims need to deploy if they happen to be scammed. According to him, the best approach is to:
- Report the matter to the appropriate authority.
- Consult a brokerage firm.
- Spread the word in the forex community about the prevalent scam to alert others.
- Contact fund recovery services.
Suppose the aim is to retrieve the lost funds in a forex scam, hiring leading fund recovery experts consistent with experienced lawyers. In that case, experts in dealing with forex frauds can initiate criminal actions against scammers.
The agencies like Cyber-Forensics.net have earned an excellent reputation in the fund recovery process- a firm that also guides legal actions to be taken against scammers. The service also helps forex trade scam victims arrange a discussion with a team of international law practitioners.
Cyber-Forensics.net is committed to providing the most accurate tracing service for victims of online scams. Cyber-Forensics.net empowers and simplifies the process of tracking down the cyber-criminals and assists in recovering the funds and creating an atmosphere for a negotiated settlement. Cyber-Forensics.net commonly deals with Bitcoin scams and Forex withdrawal problems. For more information, please visit https://cyber-forensics.net/.