Scam brokers continue to be sophisticated and invent more and more new ways of scamming. It has come to the point that fake brokers are already successfully using even high technologies!
We are talking about scammers who disguise themselves as STP brokers specializing in margin trading. These companies offer services for the purchase of forex contracts and other CFD instruments.
Why you need to check the license
It should be said right away that you can easily cut off even the most “advanced” swindler brokers. To do this, just check if they have a license. The company that regulates the broker should also be indicated. In case of problems, the trader can contact the regulatory company, which must resolve any controversial issue.
Attention! When checking a broker, you need to pay attention to the availability of a license, and not to the duration of the company’s existence. It can work on the market for decades, but this fact does not confirm the legality of the actions of the brokerage organization.
Imposing services and recommendations is a sign of fraud
Another way to identify a swindler is the maniacal desire of company representatives to impose their services and recommendations. Some regard this behavior as aggressive marketing, but often the broker’s active “tips” are at odds with common sense and the market situation. Consequently, traders who use the broker’s intrusive advice are doomed to losses.
How to get away with your feet?
If a trader has not checked the broker and paid attention to indirect signs of fraud, after a while he will still understand that he is being bred. But in most cases, he will not be able to get away with his feet in time. This is due to the cunning of the broker, which, instead of the “withdrawal of funds” button, left the trader only the opportunity to “submit a request for withdrawal of funds”, which will be satisfied no one knows when. In such a situation, the trader can only watch how his account gradually decreases. As a result, it will decrease to such an extent that it will become insufficient to execute the withdrawal request.
Summing up, it remains to say that having already fallen into the hands of a fraudster, it is very difficult to get out of them. Therefore, we recommend that all traders always be responsible when choosing a brokerage company. If you had a similar negative experience, share your story and the consequences of such “cooperation” in the comments below this article.