First Option Recovery is a firm dedicated to eradicating forex trading scams across the globe. By the time you are reading this, we have recovered more than $19 million from various scam groups across the world, 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 have been giving birth to a lot of scams lately. The most common among them is the EuropeFx Scam. Since, the value of one currency is always compared with respect to another currency, hence currency trading is always done in pairs. Being a legitimate business with high-profit yielding capabilities, forex trading has the ability to reap high profits in the long run if done properly. Unfortunately, a lot of online forex trading scams have been unearthed owing to fake forex brokers posing as real ones.
Being controlled by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the United States, Forex Trading is fully legitimate and authentic (pretty much like our firm First Option Recovery), the business not being a rigged one as many claim it to be. However, the point lies in the fact that many young investors, owing to their inexperience, end up falling for different types of scams and lose their money.
Our team has done a 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.
A lot of investors assume forex to be a pyramid or Ponzi scheme however, that exactly is not true. Certain brokers, taking into their advantage, the inexperience of the traders, end up creating forex bots or exchanges, which act as a pyramid or Ponzi scheme. Manipulation and forex rigging are also quite common. Since the team at First Option Recovery has been quite active at busting all the Pyramid and Ponzi schemes, here’s what the team says 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 number of new members he can bring to the table, the more his commission would be. In other words, the commission would directly be based on the number of new joiners. Whenever you see a product being sold in such a way that your earnings from the product would be based on the number of sales you have done, then the product might well be a manipulative one and you should stay away from it.
Get Rich Quick Schemes
First Option Recovery does not know about any get rich quick schemes so far but got hold of all the get-poor quick schemes that are fabricated by the name of schemes that provide insane returns. There is always a lot of risks associated with these forex trading scams. One needs to know that Forex is a zero-sum game. In simpler terms, while you make a profit based on one currency, the person dealing with the other currency as the base currency, will be making a loss. Owing to your profit, a major commission has to be paid to the forex broker, which will then reduce the amount of money one makes even more. This being said, if Forex trading from a particular broker is being advertised as a get rich quick scheme then there is a cent percent chance of it being a fake one.
Forex Trading Bots
Trading in currencies is often seen in advertisements as being the face of getting rich quickly. The increasing number of commercials, primarily pertaining to 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 a lot of factors including inflation rates, interest rates, government debts, terms of trade and the political scenario to name a few. In such a situation, predicting that a forex bot is going to do all the job for you is too much to expect. So far, no bots have been made to do all the automatic trades for you and reap high returns.
Research indicates that the majority of retail forex traders are indeed making a loss, and so when they end up reading all the advertisements regarding high profit-making forex bots, they lose their emotional discipline and end up spending their money into it. Little do they know that they are being lured into a forex trading scams, recovering money from which can be quite difficult. We, at First Option Recovery, 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 in helping you recover your funds is done manually.
Trading with the help of Non-Regulated Broker
Developed countries like the United States have highly regulated forex brokers but in developing countries, forex firms are not that regulated. One can literally 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.
In order to save oneself from such mishappenings, it is highly advisable to check the background of the broker and research as much information about it as possible. The broker should have a regulatory license and also, 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 that have been busted so far and all the new ones that are yet to be busted in the near future.
Buying in all the information
First Option Recovery believes in providing only valid information to its customers after spending hours and hours in research work. 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 the beginner traders and the experienced one. Experienced professionals, primarily belonging to banks and hedge fund organizations have access to all the latest market information and in handling huge sums of money, posing them into having a significant advantage over the smaller retail traders who possess limited information. It is thus seen that they make way less money than their professional counterparts.
Retail traders, due to this information gap, end up buying all the misinformation regarding forex provided across various sites and sometimes, end up paying for it as well. It is highly advised to follow the information only from legitimate news sources and not pay for any irrelevant financial information.
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 money is via churning, a phenomenon very few know about.
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 called churning. Churning is illegal and unethical according to the law. It violates SEC Rule 15c1-7 and other securities laws.
What to do when you lose your money in forex trading scams?
In spite of 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 across the world and has been steadfast in improving its presence on a much larger scale, owing to the amazing team of attorneys, bankers and private investigators that have been a part of the team for more than a decade now.
We as a group in First Option Recovery, is dedicated to helping clients 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 sealed from top to bottom that will make sure that the money reaches you and then only 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.