With the development of the foreign exchange margin market, false foreign exchange fraud occurs frequently, and even some cheated investors do not know that they are in the foreign exchange black platform, in this case, more and more novice foreign exchange traders are at a loss, mistakenly thinking that most foreign exchange platforms are fraud platforms, and hide away from foreign exchange when they hear foreign exchange. In order to help you better understand forex and forex fraud, Tian Yan Jun has specially compiled the most comprehensive forex issues in history.

The outline of this paper is as follows:

I What are the methods of forex fraud?

II How to identify and avoid Forex margin fraud?

III How to choose a legitimate and safe Forex dealer?

IV Is MT4/MT5 a scam we hear about?

V How do we defend our rights after forex fraud?

VI Other information related to forex fraud

I What are the common foreign exchange (margin) fraud methods:

Fund trusteeship

It is called surrogate operation. Money into the designated account by the brokerage on behalf of the operation, it seems to be very easy, but in fact, the transparency is very poor, you do not know how to operate, at the beginning of the platform will give you a false impression that it is easy to make money, so that you relax your vigilance to chase gold to prepare for subsequent fraud.

If we can achieve high returns just by keeping money in custody, can we get rich easily? Always remember that there is no free lunch at any time.

Group tape

After investors deposit money, they can use the platform provided by the brokerage to place their own orders. The service provider may provide a group, in which a teacher will provide information and guide the user, step by step.

At the beginning, the user is profitable, driven by the interests, coupled with the guidance of crooks, users will deposit more and more funds, and then the black platform in the background operation so that users began to lose money, this time the brokerage may for various reasons to let users unable to withdraw money, or announced bankruptcy. Even some will have more in-depth fraud, such as letting you make up money after the warehouse explosion or threatening lawsuits to cheat another sum.

High return, low risk

Many forex black platforms claim to offer high and stable returns to attract investors.

Any investment is high yield accompanied by high risk, promising low risk or even zero risk at the same time can get high yield, this kind of fraud is obviously contrary to common sense, but unfortunately, many investors in the "high return" temptation have lost the ability to distinguish.

High commission, high bonus

Many brokerages will provide customers with certain rebates or bonuses to increase customer loyalty. The so-called rebate refers to the fees and spreads incurred in the course of trading, which are part of the cost of forex trading.

Foreign exchange fraud platforms have taken advantage of this, exaggerating the preferential efforts and even 100% rebate, and some platforms are vague, only saying that they return fees and hide the difference. When investors invest a lot of money, they will find that they have been cheated.

Spread scam

Forex spread scam is to play on the transaction cost, using the computer to expand the spread range, thereby increasing the transaction cost.

Even some illegal platforms will combine the rebate and spread, for example, he will first increase the spread by 50 points, and then tell investors that they can return the spread of 20 points, investors do not know the actual cost.

Pseudo-formal platform

Many Facebook or LINE investment groups have a lot of fraudsters lurking, investors from these channels to add some so-called "official customer service", they will send fake platform links, under the guidance of fake customer service, investors mistakenly think that they are through the formal platform trading, and finally found that continued losses and even the principal can not get back.

Before you start trading, be sure to verify the supervision and authenticity of the forex platform.

Automated trading scam

Intelligent automatic trading system, also known as EA (Expert Adviser), investors can achieve 24-hour automatic trading through the help of the system, without affecting other affairs.

However, some fraud platforms will use EA to exaggerate that their trading system is extremely powerful, safe, low fees, and can allow you to earn and lose money all day long, realizing your passive income, which is better than other well-known systems.

It is important to know that a mature trading system, the development cost is very high, not any small organization can solve, and there will be no stable system. If investors put their faith in some unvetted EA systems, it can lead to losses.

There will be no free lunch in the world, if there is really a good project that can make no loss, why should the platform share it with you?

Break-even guarantee

Similar to high return and low risk, such tactics as capital protection and interest protection are used to attract investors' attention by taking advantage of investors' desire for profit and not wanting to take risks.

Investors should be wary of such propaganda. In addition to capital preservation, some institutions even advertise that they can guarantee a certain percentage of return, which is a typical Ponzi scheme that eventually runs away with the money.

Similarly, there are some fixed income foreign exchange custody projects, artificial intelligence foreign exchange custody projects, AB warehouse insurance foreign exchange custody financial projects, etc. The common point of these projects is to claim that it is steady and easy to make money.

II Raise awareness and stay away from Forex scams

Although we can take certain measures to recover the losses after strayed into the fraud platform, the effect is usually not ideal, the funds are often unable to recover in full, and the work of rights protection, negotiation, reporting and so on consumes a lot of our time and energy, and ultimately it is not worth the loss, so the best way is to try to avoid being cheated.

III How to choose a legitimate and safe Forex dealer?

Here are some fraud prevention summaries:

Choose traders with at least one top-level regulatory license, such as the NFA in the US, the FCA in the UK, ASIC in Australia, the FSA in Japan, and FINMA in Switzerland.

It is recommended to choose established more than 10 years old dealers, have a history and reputation, usually relatively large scale, and have advantages in cost. It is not recommended to choose a dealer with a short history or a small scale.

Compare several large platforms, from the leverage, trading categories, transaction costs, software ease of use and other aspects of comprehensive consideration, choose the most suitable for their own platform traders.

Do not trust dealers or platforms recommended by acquaintances, any platform, and do a careful background check before making a deposit.

For known dealers, they should also check regularly, and do not rule out that the qualification or reputation of dealers will change.

Adjust the mentality of speculative windfall profits, do not blindly follow the trend, should be rational to look at investment, through learning investment skills to improve investment returns more reliable. Don't think about it too much. It is more reliable to improve your professional level and gain revenue than to rely on others. Only if you are rational and have enough professional knowledge can you deal with the tricks of the lawbreakers.

IV Is MT4/MT5 a scam we hear about?

MT4/MT5 are all trading software, they are just an ordering software. It can be understood that it is a system similar to Android, which can connect to different forex brokers.

There will be fraud, the key lies in what kind of foreign exchange brokers the user chooses, MT4/MT5 is just a software tool to provide orders, tools can not defraud themselves.

Note: there are many fraud agencies will fake MT4 or MT5 staff, guide users to the black platform trading, Xiaojun has received private feedback that MT5 customer service staff contact investors to help open an account and deposit money, in fact, it is a fraud agency to lure investors to black platform trading.

V How should we protect our rights after forex fraud?

If you accidentally encounter a fraud platform, do not panic, first try to recover the losses as much as possible. Collect more evidence and information, negotiate with the black platform, propose media exposure, if the platform still wants to operate, it is possible to return a certain amount of funds.

At the same time, the joint victims, it is recommended that everyone form a group, collect as much useful information as possible, and gather together the chat records, transfer records, key person contact information, document number, bank card number and other information of the cheated process. Due to the large number of people involved and the amount of money, the police will pay more attention. The earlier the report, the better to try to give the police time to freeze the funds of the illegal platform in order to recover the losses. Provide the collected information to the regulatory authorities or report the case, freeze the funds as soon as possible, and prevent the scammers from transferring the funds out of the country; Suppress the black platform through media exposure to remind investors to protect.

VI Other information related to forex fraud

A: Can I withdraw money from MT4/MT5? How to withdraw money in Forex trading?

In fact, these software is only a tool to place an order, there is no function of keeping funds, investors' money is deposited into their own choice of foreign exchange platform, to withdraw money to find the brokerage account, in accordance with the rules of the brokerage, and the software has no relationship.

A: MT4/MT5 will not have customer service staff to connect with you at all

MT4/5 itself is not connected to general customers, they are connected to the brokerage platform, so if you have received active contact from MT4/5 customer service staff, do not believe it.