The bankruptcy of Online Brokers
Online trading and investment is an emerging best market place where users seek opportunities to make money and use their capital to double their wealth. Some brokers have as much customer’s registrations and huge investment from each at the beginning but it failed to keep its promise over a time which leads the investors worried on losing their capitals along with the profit they made. Such activities are getting controlled over time with the help of financial authorities to replace the capital investment of the investor and make them safe by collecting security deposit from the brokers when they register to start a business to deal with investors.
GETTING SCAM
When a large mass of users getting into a particular place or market, its common to get scammed due to lack of knowledge in checking the regulatory licence and trust score of the particular broker or platforms.
Scam can happen in many ways such as dishonest brokers, fake promises and dealing with not an advanced technology auto-bot(automated trading). Stories are there who lost their hard-earned money and family wealth in online trading and other investment plans, but now years went; Regulations of brokers according to the countries got tighten with the help of CFTC (Commodity Futures Trading Commissions) and NFA (self-regulatory National Futures Association). These regulations are power hold for the investors. It’s an unavoidable step to check the regulations and trustability of the particular broker before investing in it. Below you can find a list of brokers blacklisted and types of scams you should avoid.
If you got to know something fishy about the broker and you, like others to be aware of it, please leave a comment below or contact us via email.
Its a duty for the investor to invest their time first to read and understand the regulation of the trading platform. It means a lot to go through them, not only the testimonials in their respective website! The investor should follow the pages or website which have reviews on the trading platforms and let the public share their views and problems with the brokers on real-time. This helps others to know where they should deal with.
Tradingcritique.com FIGHTS against scammers by collecting valuable reviews from the users or victims. Please feel free to provide such pieces of information on the comment section or email us. We are still searching for the best recovery firm that would work on the behalf of trading victims. Let us join our hands together and fight against scam. If you are the victim, Leave your information on the form which is on THE Right and wait for us to suggest you a recovery firm.
Here TRADINGCRITIQUE.COM offers you awareness about n-number of scams involved in online trading.
Promises to the investors
In the beginning, investors are promised by the broker to assure 99% of market signal and real-time graph and access to all variety of stocks and commodities. But later privileges are shrunk and it will be distributed based on the value of the investment that a customer has made. It makes the customer worried and limiting their options on trading lets the user to deal with unexperienced stocks, that may end up in loss.
The Point-Spread scam
This scam is based on computer manipulation of bid-ask spreads. The point spread between the bid and ask fundamentally reflects the commission of the back-and-forth transaction treated through the broker. These spreads typically vary between the currency pairs. The scam occurs when that point spreads differs extensively among the brokers. Brokers can change the signal or graph and manipulate the price of the stock if they have access to it and end the trade in the wrong way. This got controlled over by regulations like NFA and CFTC.
Signal Provider Scam
SIGNAL PROVIDER SCAM is a modern-day scam. New to trade or beginners are the most affected ones from this scam. They like to do the trade but fail to wait or analyze the market and acquire the knowledge.
Some retailers or individuals who promote as a signal seller with an attractive website and have paid testimonials and reviews stating them as 99% accurate signal provider and get the beginners to attract into them for subscription in terms of daily, weekly and monthly. And once the investor paid for that signal, the signal provider will not provide the signals at right time or giving excuses like server issue, they get vanished from the client in few days resulting in the loss of subscription fees for the investor.
But there are honest signal providers who can be the best pick for traders.
An experienced trader will choose the signal provider but they do background work about the quality and trustability of the provider.
ROBOT or AUTO-TRADE
The modern way of explaining trades which are being placed by the computers with forex based developed AI (Artificial Intelligence) . It increases the adrenalin of investor and makes them trust that computer will place a trade and make profits even when customer is asleep or away from the trading time and inspire them with a handy mobile application to track the performance of the trade which is placed by Robot(Auto-Trade).
High-cost platform
In trading, both the experienced and beginners will always seek for the experience with a minimal investment like few hundreds, but some brokers start with minimal like $5000 which they show like trade-in snow.
This makes us fishy, Yes definitely. Investors always choose the best which allows them to get convenient with their taste of capital investment and trading experience with the platform not for the higher capital.
Never Leave You Out
When the investor thinks that broker or platform where he made his investment is not the right choice anymore or he wants to leave, but the particular broker did not allow the customer to get out by holding their balance and not responding to the customer’s withdrawal request, then it’s time to be alert. Immediately the customer should complain to the financial authorities and report to the concern department.
JUST A BALANCE
The brokers show always a profit! yes its always a profit and ask the customer to load more funds and it is just a number where customer can see but it’s not physically available for withdrawal. And these funds turns a lavish lifestyle for the broker with BENTLEY and PRIVATE JET and in few days they will vanish from the customer’s sight.
Always customers are advised to have their profit in hand. Don’t dump more, it will lead worse.
