Empire Swiss experts say how detect scamBarry Copeland 31 / October / 22 Visitors: 72
Forex is just one of the financial markets and has all the qualities of an industry. Profits here are directly proportional to risk, nuance and accuracy are very important and the cost of error is high. Together with Empire Swiss experts, we'll explore how crooks prey on and deceive newcomers.
Forex pyramids and MLM
An ancient venerable scheme known in the English-speaking world as the "Ponzi scheme". It was born a long time before the Forex market, and swindlers use currency trading as a pretext. Victims are promised a guaranteed high income and cheated out of their money by any means. At first the "depositors" are paid an income, which appears from attracting more and more new victims.
Empire Swiss comments: a pyramid scheme can only theoretically be a working scheme. But in 99.9% of cases it will be crooks who will steal from you at the most unexpected moment. If you see the signs of a pyramid scheme, walk away.
Forex Mutual Funds (PAMM)
You are offered to invest in a certain fund operated by supertraders who can provide you with high returns with almost zero risk? Congratulations - you've found the crooks again.
Empire Swiss comments: As in the previous case, the word Forex is used here as bait. In the nineteenth century, such con men would have offered to buy Panama Canal stocks. Nowadays, pure finance is more popular. As we noted above - the profit is directly proportional to the risk. Not just in Forex, but everywhere. That's why those who have low-risk businesses are able to borrow from banks at the most moderate rates.
Manipulations with Bid/Ask spreads
Disguised as a real Forex broker, the scammer on his trading platform puts such spreads on currency pairs, which negate the potential profit of the trader. In addition, the trader has to pay another commission, which aggravates his situation.
Empire Swiss comments: The spread cannot be too large. Financial authorities of many countries regulate this question and watch the legal participants of the market. But there are a lot of Forex brokers all over the world, so there is a chance to run into such "colleagues.
Scam artists offer "precise information" for a small or large fee about where the market will soon turn. Especially talented ones manage to keep the victims believing in their effectiveness for quite a long time, until they gain their trust and "rip off" them for a large sum of money.
Empire Swiss comments: Currency markets are very volatile and difficult to predict, but it cannot be said that they are completely unpredictable. Currency rates are influenced by many fundamental factors, which can be tracked and taken into account. This makes it possible to demonstrate the correctness of such "signals". We recommend you to avoid offers to buy "signals" together with the work at a particular trading platform.
Trading bot scam
It is possible to trade "manually", but the good thing about electronic trading is that it can be automated. Experienced traders use bots that perform operations according to preset schemes. With this kind of talk, scammers can sneak up on you, selling bots that don't work.
Empire Swiss comments: The arguments of the cheaters are absolutely fair - the machine will more reliably execute your trading strategy. But the bot may not work correctly. It can be inefficient. Or it can trade to your detriment and for the benefit of criminals. We recommend developing bots yourself or entrusting this work only to the most trusted and proven people.
Failure to return money
Your broker gives normal conditions. His quotes are average for the market (you checked). Trading is going well. Somewhere you earn, somewhere you lose. But at a certain point you cannot withdraw money from the deposit. Something is not working. You write to the support service, they begin to feed you with breakfasts. And then they stop answering altogether. And even block access to the "trading system".
Empire Swiss comments: Such crooks, as a rule, work without a license. Or with the license of some distant state, so that it is not clear where to run with the complaint. We strongly recommend not to cooperate with brokers that exist only on the Internet.
Scammers use schemes that are as old as the world. If you decide to engage in stock trading in any form - Forex, stock trading, indices, cryptocurrencies, whatever - study the experience of your ancestors. And always check those with whom you are going to deal.