First Option Recovery is a firm dedicated to eradicating forex trading scams worldwide. By the time you read this, we have recovered more than $19 million from various scam groups worldwide, with more than 3100+ cases solved. We have a solid foundation of over 120+ attorneys across 22 countries, and our private investigators are there working 24*7 across the globe to ensure high-quality recovery solutions for our current customers.
Forex (foreign exchange) trading, the act of buying and selling currencies, has been giving birth to many scams lately. The most common among them is the EuropeFx Scam. Since one currency’s value is constantly comparing and impacting another currency, currency trading administers in pairs. With legitimate businesses and high-profit yielding capabilities, forex trading can reap high profits in the long run if done correctly. Unfortunately, many online forex trading scams have been unearthing due to fake forex brokers posing as real ones.
Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) control these areas in the United States. Forex Trading is entirely legitimate and authentic (pretty much like our firm First Option Recovery), the business not being a rigged one as many claims it to be. However, the point lies in the fact that many young investors, owing to their inexperience, end up falling for different scams and losing their money.
Our team conducts thorough research about all the global forex trading scams that have been happening across the globe, and here they are presented right in front of you.
Many investors assume Forex to be a pyramid or Ponzi scheme; however, that exactly is not true. Taking into their advantage the traders’ inexperience, certain brokers create forex bots or exchanges, which act as a pyramid or Ponzi scheme. Manipulation and forex rigging are also growing at a fast rate. Since the First Option Recovery team has been quite active at busting all the Pyramid and Ponzi schemes, here’s what the experts say that you need to know about them.
A pyramid scheme works primarily on a networking basis where a product is sold to a particular person letting him know that the more new members he can bring to the table, the more his commission would be. In other words, the commission would be reliant on the number of new joiners. Whenever you see a product sales functioning so that your earnings from the product would be on the number of sales you have done, the method might well be a manipulative one, and you should stay away from it.
GET RICH QUICK SCHEMES
First Option Recovery does not know about getting rich quick schemes so far but got hold of all the get-poor quick techniques fabricated by the name of scams that provide insane returns. There are always many risks associated with these forex trading scams. One needs to know that Forex is a zero-sum game. In simpler terms, while you profit based on one currency, the person dealing with the other currency as the base currency will be making a loss. A significant commission has to be paid to the forex broker, owing to your profits, which will reduce the amount of money one makes even more. If Forex trading from a particular broker promotes a rich quick scheme, then there is a cent percent chance of it being a fake one.
FOREX TRADING BOTS
Trading in currencies often occurs in advertisements as being the face of getting rich quickly. The increasing number of commercials, primarily about forex bots, is a clear sign of negligence and misinformation among the new traders. Forex, as described before, is not a get rich quick scheme. The price fluctuations when it comes to currency depend upon many factors, including inflation rates, interest rates, government debts, terms of trade and the political scenario, to name a few. In such situations, predicting that a forex bot will do all the job for you is too much to expect. So far, no bots support all the automatic trades for you and reap high returns.
Research indicates that most retail forex traders are indeed making a loss. So when they end up reading all the advertisements regarding high profit-making forex bots, they lose their emotional discipline and spend their money on it. Little do they know that they are being lured into forex trading scams, recovering money, which can be pretty tricky. At First Option Recovery, we believe that a human mind is way sharper than a bot, and as a result, we dissuade you from the use of bots. All the processes that we follow to recover your funds are manual.
TRADING WITH THE HELP OF NON-REGULATED BROKER
Developed countries like the United States have highly regulated forex brokers, but forex firms are not regulated in developing countries. One can pay a thousand dollars and start a forex brokerage firm there. The broker then spends a lot on marketing his firm and asking young people to invest their money into it. After the money has been deposited and the firm has made enough money from the traders, it suddenly vanishes in thin air with all the money.
If you want to ensure your safety from such mishappenings, it is highly advisable to check the broker’s background and research as much information about it as possible. The broker should have a regulatory license and a valid phone number and office address. In case you face any difficulty, you need to check our portfolio at First Option Recovery that provides a detailed analogy of all the forex trading scams. It covers scams that caught so far and all the new ones that are yet to be out in the open shortly.
BUYING IN ALL THE INFORMATION
First Option Recovery believes in providing only valid information to its customers after spending hours and hours in research. Unfortunately, that is not the case when it comes to other forex brokers who end up providing all the false information by directly plagiarizing it from other sources. The forex trading market has a wide gap between beginner traders and experienced ones. Experienced professionals, primarily belonging to banks and hedge fund organizations, have access to all the latest market information and handle vast sums of money, posing them as having a significant advantage over the smaller retail traders who possess limited knowledge. It is thus noticeable that they make way less money than their professional counterparts.
Due to this information gap, retail traders buy all the misinformation regarding Forex provided across various sites and sometimes pay for it. It is highly advisable to follow the information only from legitimate news sources and not pay for irrelevant financial details.
More than 90% of the traders lose their money in forex trading due to bad money management, overtrading and a lack of knowledge. Another method of ripping a naive trader’s capital is churning, a phenomenon that holds low awareness among people.
One needs to know that a forex broker makes a certain percentage of commission every time a trader makes a profit. As a result, the broker encourages a trader to buy and sell Forex more often than what the trader can afford. In most cases, the profit earned significantly reduces owing to the number of trades. This phenomenon is known as churning. According to the law, it is illegal and unethical. Churning violates SEC Rule 15c1-7 and other securities laws.
WHAT TO DO WHEN YOU LOSE YOUR MONEY IN FOREX TRADING SCAMS?
Despite all the warnings, sometimes losing money is not in our hands. In such cases, basic things like filing a complaint can be an option. However, a better option would be to get your money recovered by directly contacting us. Our firm has been a nightmare for all the fraudulent forex brokers worldwide. It’s steadfast in improving its presence on a much larger scale, owing to the fantastic team of attorneys, bankers, and private investigators who have been a part of the team for more than a decade.
As a group in First Option Recovery, we go out of our way in supporting clients to recover funds from all across the globe. With a presence, secluded from the public eye (confidential agreements), and a top-class team of attorneys, bankers and private investigators, you can expect the best-in-class services from us without an iota of doubt. We do make sure that you sign a confidentiality agreement before we agree to work on your case so that all your information is safe from top to bottom to make sure that the money reaches you, and that’s when we get our due credit. Also, we are not just limited to forex trading scams. We can help you recover money from all kinds of scams, including crypto scams or even binary scams.