With so much money circulating around the world, it should be expected that many rotten individuals would seek to misappropriate it. In fact, over the past 10 years, many different and creative schemes and scams have been plotted by such people, in order to steal from unwary investors.
These schemes have been most prevalent in the Binary Options industry, but have also occurred to a greater or lesser extent in the Forex market. In every case, knowledge is the best remedy against falling in these traps.
Here we present the 6 main types of scams in the Forex and Binary Options Industry: Such a thing should already have been known to be absurd because no matter how sophisticated a program is, it cannot ever predict the future. And, even though the market can be fairly predictable, it still contains many hidden variables. This is particularly common among beginners.
Well-intended companies always warn their investors of the risk involved in Forex. As any investment, risk is also a part of this game, and traders should never invest more than they would be willing to lose at any given moment. One of the worst and lowest types of scam. This type of scam is most common in Binary Options where investors eventually find themselves with nothing left.
At the same time, one can more easily identify this type of scam when they compare information with trustworthy sites like Reuters. People who have fallen for this scam will usually try to withdraw their money. However, by that time, the company owners may have already disappeared or simply chosen to ignore that user, never to hear from him again.
Certified and regulated companies have a much lesser chance of being guilty of this scam. Many companies offer huge bonuses upon deposit. The truth is those bonuses often cannot be withdrawn until a certain harsh or impossible condition has been met. Sometimes they will demand the trader to trade a certain value before he can take it. By the time the money could technically be withdrawn, even if no other types of scam are present, the trader will have already lost everything.
Companies like Tradeo give their bonuses without such harsh conditions. Often, they will do this using sleazy psychological tactics including humiliation, insults, and rudeness.
Intimidated investors that either believe they will be able to recover their capital or are too shy to turn down such propositions, end up losing more before even realizing what had happened. This type of scam happens when investors want to withdraw their money only to be met with a series of impossible documentation demands by the broker.
The victim is often left without any recourse. There are many other types of scam practiced by brokers, but these are the main ones. Registration Data Company Number. Professional, scientific and technical activities Class Activities of head offices; management consultancy activities Administrative and support service activities Class Office administrative, office support and other business support activities Other business support service activities n.
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