There are hundreds of Forex and CFD platforms in the internet. Some of them are licenced by different financial authorities – for example the CySEC in Cyprus, Bafin in Germany, the FCA (Financial Conduct Authority) in England. There are also some companies without a licence. Especially some of the companies without a licence have been involved in differend scam cases during the last couple of years.
Lured by the promise of huge returns people all over the world invest in forex and CFD trading and hope to make big profits. But more and more traders are losing huge amounts of money because of CFD and forex scammers.
Investors shouldn’t wait too long if they do not feel comfortable about their FOREX and CFD broker. They should contact an experienced lawyer and ask for advice or support.
According to the statistics of the ACTION FRAUD british citizen lose around £1.2 billion because of differend kinds of investment scams every year.
Investors should always pay attention on following aspects:
FOREX and CFD regulation
One of the most important aspects is to check whether the companies are licenced by a financial authority – for example the CySEC in Cyprus, Bafin in Germany, the FCA (Financial Conduct Authority) in England.
Generally it is safer to invest in a licenced company, because even not every unauthorized company is trying to scam you, it is better if investors are able to contact a regulatory authority in case they have some issues.
There are also some cases in which individuals are just pretending to work for a licenced company. In some cases there are clone companies that use the name and the good reputation of regulated firms.
FOREX and CFD warning lists
Another very important aspect is if the trading platform is already on a warning list of a financial authority. Not every warning means automatically that it is a scam company, but in general investors should be careful if they find a warning.
FOREX and CFD companies and Over-promising
Sure all investments come with some risks. Alarm bells should be ringing especially if the individual offering the investment is downplaying the risks or promising/“guaranteeing“ too good returns.
In general if something sounds too good to be true, investors should better think twice before they invest.
FOREX and CFD scam – pressure to deposit money?
A reliable and legitimate Forex and CFD broker does not pressure the clients to deposit more and more money. Even if the broker has many really good reasons why a trader is supposed to deposit more and more money a responsible trader should not invest all his money into risky deals. Spreading the risks is one of the most important rules.
FOREX and CFD Withdrawals
Scam brokers often advise their clients not to withdraw their money. Investors should take their own decisions about withdrawals.
FOREX and CFD broker – experiences of other traders
A list of Forex and CFD platforms:
AAFX Trading
Lottmarket
CMC
FSCM
Option888
Boursemaker
Etrader
Toptrader
FXGrow
Capotrade
Tradecentrum
Fibo Group
Tickmill
FXpro
Opteck
Xtrade
Easymarkets
Fortrade
Adblue