Forex fraud: what to fear
Unfortunately, fraudsters are everywhere. The Forex market in this case is no exception. What is to be feared on the stock exchange? First of all, brokers can deceive you because they have direct access to the market by offering to start trading using their own account. They have several ways to mislead the trader.
Known methods of fraud in the forex market
The first is the so-called. “Tightening quotes.” When opening a quotation in a calm market, different brokers can make up 2-3 points, but in a sharp market the difference may be several dozen points. The most interesting thing is that the broker can freely see what your margin call level is and where you have stop loss. Therefore, it is only necessary to reach the quotation for them, which will lead to the operation of the system, and you to losses. In whatever direction the price would then move, it will not have any meaning for you. In this way, brokers can gradually destroy the entire deposit of their clients.
The second way (no less common) is a “turn”. Your ability to make money on forex is not profitable for a fraud broker, since he loses his money in this case. Therefore, as soon as you earn good money, a “turn” may occur. What it is? Just a profitable position will be electronically changed to the opposite, its volume will be increased, and your feet will be eliminated. Of course, most of the deposit will be lost, and the trader will not be able to prove anything!
The third way to deceive the trader is to become his opponent. The fraudster-broker simply will not bring the client’s position to the real market. Broker while counting on the loss of the client. If this does not happen, he can use the first or second method of deception.
Forex Fraud and Deception
In addition to brokers, you may also be deceived by various dishonest funds that offer to invest in the trading process, but not to trade on your own. As a rule, at first they show a good return, but then the fund suddenly disappears in an unknown direction. Accordingly, to return your money will not work.
Fans of illegal work on Forex may be private traders. They pretend to be experienced traders and offer to invest money in their trade, promising huge profits to trusting people. They completely copy the actions of scam funds, but they do not create a guaranteed and quick income. When a certain amount is collected, they disappear.
That is why, when starting to work on Forex, be careful. Trust only reliable and trusted brokers, do not cooperate with unfamiliar companies and people. It also does not hurt to consult with a professional lawyer and financier on all major issues.