Forex trading is one of the easiest ways to make money, and many people with day jobs finally leave them once they become proficient in forex trading and become full-time forex traders.
Compared to the rest of the traditional financial markets, forex trading is the easiest, as it offers fewer options and is easy to learn. The simplicity of the forex market, combined with its high rate of volatility and liquidity, attracts many to take a keen interest and make substantial profits.
No wonder the forex market is one of the most sought-after markets, with a daily trade volume of more than $7 trillion.
Regardless of the ample opportunity offered to those who wish to participate and make quick money, several scammers will indulge with ill intent to rip off those who wish to enter and make honest profits.
The number of honest and genuine forex brokers or brokerage firms is lower compared to the number of fake forex brokers or brokerage firms. And unfortunately, many fall victim to fraudulent scams.
James Smith, 34 (names changed), a school dropout and an employee at Target, has been married for five years and has a seven-month-old daughter. By nature, James did not believe in savings; however, after marrying, the thought of owning a home started creeping in. He no longer believed that living in an apartment was good enough and desired to show that his family deserved more.
It so happened that during an evening break, he happened to chat with one of the customers, and during the conversation, the customer revealed he was a forex trader and had made a sizable sum of money.
After gathering a lot of information, he was convinced that he would make a lot of money by investing and trading in the forex market. Through the conversation, he came to know that the forex market was practically open 24 hours a day, seven days a week.
It was March when James started searching for an online forex broker and brokerage firm. He selected the one that assured realistic returns, as directed by the customer he had met a few days ago.
Our experts wish to point out over here that regardless of how you choose the broker, you must carry out further research. It is not enough to just check whether they are registered and regulated. Scammers use deceptive means that might lure in their victims and rip them off.
He had invested $30,000 in the forex trade and traded when he was not working or had a shift. As he started gaining confidence in his trading skills, he realized that had he been told about such investment and trading opportunities, he would have made quite a lot of money.
Since James did not believe that he could trust himself with the money he made while trading, he did not withdraw any of his money from the trading account, which has now grown to a sizeable $75,500.
As he continued trading, he also started to check for a home that he could afford. He had shortlisted a few and kept it a secret; he wanted to surprise his wife, who was now carrying his baby.
It was in December that he had to file his income tax when he felt the fatal blow. The forex brokerage company had charged him astronomical fees, carving out a good amount of the money that he had traded.
When he confronted the broker regarding the charges, they said he needed to pay them; otherwise, the firm would be compelled to send IRA agents to his doorstep.
A cold fear gripped him; if he were to pay the amount of money that he had made while trading, he would end up losing a chunk of the money, and the very thought scared him.
However, he knew that his IRA could tax him to death if he did not act quickly. Although James had not completed his education, the streets had taught him well to be very careful and how to deal with finances.
He approached his local certified public accountant and asked for a way out. Even the CPA was astounded by the amount of money that the firm was charging him as professional fees or commissions.
As his CPA further investigated, he was relieved that the forex broker could not charge him such a fee and that the IRA could not be involved due to legal terms and conditions.
On further reading all the terms and conditions that the forex broker had laid out, the CPA was convinced that it was a pure scam.
As per our experts, it is critical to do your homework, including the terms and conditions. There are several forex brokers and brokerage firms whose licenses have been revoked due to fraudulent activities. Just because they show their certificate to run their trade, it does not necessarily mean that they are running an honest business.
While researching, take care that the forex broker or brokerage firm is not involved in any legal litigation, and also check if the license is valid and is being registered and regulated by either the local government or a renowned private agency.
James was given two options by the CPA: either he could approach the local law enforcement agency and seek their help, or he could seek professional financial fund recovery agencies that would provide quick results to recover his lost funds.
James chose the latter, and he approached a trusted and reputed financial fund recovery agency. The financial fund recovery agency has taken all the details and is pursuing the case.
By the time James approached the financial options recovery agency, his wife had already given birth to a girl who was six months old.
After taking a detailed account of all the scams, the case is being persuaded, and the chances of James recovering his lost funds are very high. They are updating James as and when there is a development in the case.
While selecting a reputed and registered forex broker or brokerage firm is not enough, you should do a background search on the selected forex broker or brokerage firm.
Beware of coercive and pressure tactics that are popular with scammers. If someone tries these tactics, then refrain from entertaining the call any further.
Vivek is a published author of Meidilight and a cofounder of Zestful Outreach Agency. He is passionate about helping webmaster to rank their keywords through good-quality website backlinks. In his spare time, he loves to swim and cycle. You can find him on Twitter and Linkedin.