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    Why is it so easy for fraudulent brokers to deceive a trader?

    Our today’s review is devoted to the extremely relevant topic of deception of traders by dishonest brokers. This phenomenon is gaining more and more scale as more and more people become interested in Forex trading. Fraudulent actions from unscrupulous brokers have dozens of different variations and can lie in wait for an unsuspecting trader literally at every turn. This happens especially often if a person did not initially check the broker’s reputation, but simply started trading in Forex with the first intermediary.

    The psychology of most people is such that the predominant desire of a beginner trader is the desire to improve their financial position, therefore the thought of an easy and quick profit overshadows the beginner’s ability to think sensibly, weakens their vigilance and significantly reduces the degree of critical thinking. A person opens an account with enthusiasm, essentially entrusting their welfare to some organization about which they know nothing. Why is it so important to pre-check the reputation of a brokerage company, and how can the average trader do it?

    First of all, it should be borne in mind that a bona fide broker, unlike a fraudster, must necessarily have a license from a central banking structure, which is an official permission to conduct brokerage activities. If it turns out that there is no license, then there is a reason to believe that this company is already suspicious. Of course, a novice trader often contacts such organizations out of banal ignorance of the specifics of the Forex currency exchange, but when the trader comes to understand what is happening, it may be too late, because it is likely that you are dealing with a Forex broker scam.

    We would like to note such an important nuance, awareness of which should always accompany a trader. If you are hooked by a fraudulent broker in Forex, then it is far from possible to return the money stolen from you without any problems. As they say, forewarned means armed, that is, it will be many times better if you can immediately avoid such a scenario and not cooperate with a Forex broker scam in principle, but choose a reliable company with an impeccable reputation in the trading environment. However, if this has already happened, then our recommendations will help you on how to get money back from Forex broker scams.

    Popular types of fraudulent schemes by brokers when trading Forex

    We invite our readers to first familiarize themselves with the most common types of fraud practiced by Forex broker scams. The popularity of all these methods is quite high, and knowledge of how exactly scammers turn their schemes in practice will come in handy for any novice trader. Understanding how the main mechanisms for withdrawing your money are arranged, you can get a clear picture of events and think about further steps to return funds to your trading account. So, below we list the

    Favorite techniques of Forex broker scams:

    • unmotivated and unforeseen refusal to the trader to withdraw his funds;
    • unreasonable zeroing of the trader’s account when there are no open positions;
    • deliberately complicated verification process, which is unrealistic to go through;
    • using the bait for the trader in the form of “free cheese”, or “brokerage bonus”;
    • difficulties with withdrawing a large amount of money from a trading account or complete impossibility to do so;
    • a statement from the Forex broker scam that the trader has exceeded the withdrawal amount and therefore cannot withdraw funds from the account at the moment;
    • emotional motivation of the trader to replenish the account, followed by illegal withdrawal of money and blocking the account.

    So, as you can see, our list includes at least seven main fraudulent Forex brokers. If you are informed in advance of what each of the schemes given here represents, you will be able to recognize a threat to your wallet at an early stage, and, perhaps, you will not become a victim of unscrupulous brokers at all. What is an unexpected refusal to withdraw funds? This happens when a trader wants to receive his money, but a Forex broker scam only simulates processing of your withdrawal request, and then enters the request as “completed”. Where do your finances go? It is believed that they are transferred to the offshore accounts of fraudsters.

    The second common scheme is the absolute and completely irrational zeroing of the victim’s account, when the trader does not even trade. Forex broker scams do not bother themselves with any plausible explanations for their actions, money simply evaporates from the trader’s account. Lawyers who often deal with such cases argue that this fraud scheme is widespread among dishonest offices, where Forex broker scams do not even care about the appearance of a normal reputation for their clients, so the trader will not receive any intelligible explanation of why the money disappeared from the account.

    The deliberate complication of the verification process is a real test for the trader’s nervous system, because fraudulent brokerage firms begin to require more and more documents confirming the identity of the trader and his right to trade on the exchange. It often comes to the point of absurdity when Forex broker scams even request those documents that are superfluous during verification. It is impossible to complete this stage, the fraudulent broker will not allow the trader to go through all the procedures necessary for trading and withdrawing funds and, again, will easily block the trader’s account for nonexistent reasons.

    A promise to “give” a trader a “brokerage bonus”, which may consist in a double replenishment of the account, also, in fact, often turns out to be a trick of a Forex broker scam. In this case, the attackers are betting on elementary human greed, and this technique justifies itself, judging by the number of traders caught by this bait. The essence of the scheme lies in endless obstacles on the way to the withdrawal of the “bonus”, as a result of which the promised money remains a phantom reward that the trader is not given to receive. And as a result, this leads most traders to a state of irritation and increases the risk of impulsive actions.

    The next two points are interconnected. Difficulties with the withdrawal of a large amount of money and the statement of a Forex broker scam about exceeding the withdrawal limit are an annoying obstacle for any trader. Imagine this scenario: a person tried to choose the optimal trading strategy, learned to analyze the market, but no honest efforts saved them from losing money. Forex broker scams’ algorithms are pre-programmed in such a way that the trader will be specially informed about exceeding the limit, even if it does not reflect the real state of affairs.

    And finally, the last clever move from Forex broker scams. Inspired by the first successful deals, a trader is gently pushed to make a large replenishment of the deposit, motivated for further success, and then suddenly the account is blocked under artificially created pretexts. In this situation, fraudulent brokers can accuse the trader of violating the rules and, with a clear conscience, freeze their account and take the money for themselves. As we can see, there are many schemes of fraud in Forex, how now to get the lost money back?

    Legal ways to get money back from Forex broker scams

    Even if any of the scenarios described above happened to you, do not fall into the abyss of despair. There are absolutely legitimate methods of returning funds stolen by a fraudulent Forex broker. However, an important point should be noted right away: when you are just planning to start cooperation with any brokerage company, you need to pay special attention to that item in the list of conditions, which says about replenishing a trader’s trading account. If there is no option to transfer funds from a bank card, then this hints that in front of you is a Forex broker scam. Any doubts about the broker’s integrity are best viewed as a red flag, so it would be wiser to contact another intermediary.

    The procedure by which the injured party can ask the issuing bank for the money that disappeared through the fault of an unscrupulous broker is carried out only if it is possible to use a bank card to transfer funds to a trading account. This gives the trader the right to demand a forced refund in the framework of the chargeback operation. The trader does not need to prove their innocence, the main thing that the deceived person must do is to draw up a well-grounded statement, which will confirm the fact of the theft of money by a Forex broker scam. For this, the bank can offer a number of different options, expressed in the form of codes, where the trader themself chooses the basis of their complaint.

    As a rule, consideration and thorough investigation of a conflict incident between a trader and a fraudulent brokerage firm takes a rather long time period, since the burden of providing evidence of the legality of their actions falls on the Forex broker and, surely, not on the trader who is being the victim here. Of course, a trader needs to be patient and self-possessed, because the money may not come back to their account very soon. If the guilt of a Forex broker scam is proven, the bank will oblige the guilty party to return the money to your trading account. And, of course, in the future it is worth eliminating your behavioral blunders when choosing a broker.

    Summing up our today’s review, we want to draw your attention to the fact that you always check the broker before you start trading Forex. A meticulous study of the conditions of work with a particular company, ascertaining the purity of the company’s reputation in the market will allow you to avoid problematic consequences, in which some people even turn to the help of lawyers specializing in such matters. Knowing your legal rights and the ability to use the obtained legal information will help you feel confident in the validity of your claims in order to successfully recover money from Forex broker scams.

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