The Forex itself is legal; you can invest in this market, since it is a regulated and reliable activity. However, since Forex trading involves exceptionally high risk, mostly losses are inevitable but in some forex scams, the investment money back is possible.
Some traders are almost undercapitalized and cause to experience the problem of gambling and misuse of leverage.
Undercapitalized traders who have no informational advantage should understand the different reasons why they think they can beat the market in such a challenging trading environment.
In any case, a large part of the total number of complaints about money scammed by brokers, occurs as a consequence of having a low level of trading, rather than being true online scams (it is always easier to blame others as a first option instead of assuming our own shortcomings).
If bad traders spent as much time creating a consolidated trading plan and finding the right broker, as they did complaining about brokers in general, they could be better professional traders much faster.
Once you accept your losses, operate with a studied system and control the market, it will be much more difficult for you to fall into a Forex fraud.
Examples of Real Forex Scams Exposed in the Media
A very common form of Forex scam is viral news, for example, the story of a boy who became famous overnight.
According to New York Magazine, a young man from Queens earned millions as a consequence of trading the stocks he was trading during his lunch hours at High School.
What really happened was that he never earned any such income as all of his profit was earned on a demo account. That case can be used to scam the stock market, since everyone wants to become a millionaire quickly and easily.
What to do when faced with a Forex Scam?
Have you been the victim of forex trading scams? There are two types of recourse depending on whether the company that scammed you is regulated or not.
If the entity is regulated, you can call the the Financial Services Compensation Commission if any company scams us. It can be done both by email and by filling in a form.
If the entity is not regulated, you can go to the ordinary courts of justice in the place where the fraud occurred.
Keep in mind that these procedures are free and be wary of any entity that promises to release lost funds in exchange for a fee or multiple application fees.
Martin has been following the crypto space since 2013. He is a passionate advocate for blockchain technology, and believes that it will have a profound impact on how people live their lives. In addition to being an avid blogger, Martin also enjoys writing about developments in the industry as well as providing useful guides to help those who are new to this exciting frontier of finance and technology.