Top 4 Forex Scam Tactics Fake Brokers Use to Trap Investors

Fake forex brokers always have multiple plans to dupe investors, including even the experienced ones. Their financial scams have reached a point where investors have started venting their anger and frustration across multiple broker review platforms. The constant complaints surrounding too-good-to-be-true schemes duping investors have made headlines in many forex journals. Its time to stay vigilant against forex scam tactics that fraudulent brokers usually employ to defraud investors. In this article, we will talk about the top four forex scam tactics. Keep reading!

Understanding Top Forex Scam Tactics

Illegitimate Account Blocking

Fake forex brokers tend to block the trading accounts of traders using illegal means. Even if the trader has complied with the norms, some brokers block the account, giving inexplicable reasons. Mostly, it is observed that when traders see some profits, the forex trading account gets blocked, leaving them shocked and annoyed. It‘s a top forex scam tactic to trap investors. As a prospective investor, be sure of the company’s operations by checking its reviews on multiple platforms. Only when the review sounds positive should you look to deal with a forex broker.

Sudden Change in Withdrawal Rules

If a forex broker constantly changes withdrawal rules for investors, its a sign of a scam! These sudden changes are brought forward by a broker with the intention to trap profits. A forex broker may allow you to withdraw just a portion of the profit. To withdraw entire profits, you may be asked to deposit certain fees, which is unethical.

Trade Manipulation

Fraudulent brokers manipulate trade to attract more investments. They make unethical changes to their trading algorithm to show profit. This encourages investors to put in more capital. As the invested capital amount becomes considerably high, fake brokers would do something illegitimate to the algorithm, resulting in losses for you. This way, you can‘t withdraw your funds. The point here is that these brokers don’t put your money in trading. They divert it to some other accounts for their illegal means.

Deposit Pressure Despite Losses

Profits and losses are integral parts of a forex trading business. But if losses happen continuously due to wrong advice, brokers dont merit further deposits from investors. Despite that, investors keep receiving non-stop calls from fraudulent brokers claiming to correct wrongdoings. However, after receiving deposits, the status remains the same - losses for investors.

Wrapping Up

These are common hacks fraudulent forex brokers use to defraud investors. Use this as a guide to be prepared beforehand so that you dont fall prey to these forex scam tactics. A little awareness goes a long way in protecting your hard-earned capital. Have a thorough review of the brokers before selecting the one that is regulated by a competent authority and has adequate fundamental and technical analysis tools to determine precise price movements.

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