Forex Scam

Forex Scams

The Forex market can be risky and since the industry itself isn't very well regulated, it can be hard for an everyday person to determine whether they've been duped. If you suspect you've been scammed, we can investigate your case and expose the fraud. Our expert investigators will work hard on your case, analyzing every piece of evidence they can gather. We'll then provide you with a comprehensive report outlining our findings and empowering you to take the next steps towards retrieving your losses.

Forex scams are unfortunately common, which is why it’s important to understand how these scams operate and what steps you can take to protect yourself. That’s why we at MoneyBackPro are dedicated to empowering our clients with the knowledge and tools they need to avoid Forex fraud altogether. We believe that informed investors are better equipped to make sound decisions and avoid falling victim to scams.

What is forex trading?

Forex is the single largest traded market globally, with up to five trillion traded each day and is considered decentralized because there is no central processor for trades– in other words, there is no entity that acts as a central exchange like the NASDAQ or the NYSE. Instead, orders are completed by millions of traders using millions of various forex brokers around the world.

Foreign currency trading is one of the most leveraged markets in the world as well. In the US, regulations limit a person to 50:1 leverage. In other countries, they have zero limits on leverage. It is not uncommon to see some non-US brokers offer 1000+:1. Due to these factors and a few others which we will discuss, this is why scams can be so prevalent within the foreign exchange market.

Is forex trading a scam?

In the investment world, forex is the wild-west of traditional financial instruments. However, most of the participants are massive institutions like banks that help companies manage cross-currency rates for payroll or buying goods. But it is by far the most accessible and cheapest investment for anyone to make. A futures broker may require a $5,000 minimum investment; whereas many firms in the foreign exchange markets require as little as $1. Day trading stocks in the US requires a $25,000 minimum balance; forex does not require this

The ease of access to significant leverage, and the fact it is open 24 hours a day all make it the most appealing market. But this also attracts many of the bad actors. Some countries regulate forex markets – but not always to the same degree as the US. Many countries have little to no regulation and allow anyone to open a brokerage account in their country. There are many, many bad brokers around the globe – so it’s often best to stick with brokers that are based in the US, EU, or UK.