Look out !!! The internet that has allowed us to trade anytime and anywhere is also the best place for scammers to lurk around. If you’re reading this post because you can relate to a situation where you feel that you have been fooled in the course of your trade, then worry no more because we understand the fact that being scammed is a more painful experience than losing a thousand positions in the CFD market. We are not here to scare you off from digitally performing your trade.
We are here because we wish to help you. We shall serve you the finest information that could help you spot hidden trading CFD malpractices so you won’t have to experience fraudulence all the time.
Appetizer: The General Situation for CFD Scams
Since transactions for CFDs are generally carried out through the help of brokers, most scammers would disguise themselves as legit CFD brokers. No, we are not saying that all CFD brokers are scammers. Our point of discussion here is your careful selection of CFD brokers because there will be moments where the fake CFD broker could secretly take all your trading resources because you failed to scrutinize both the broker and the contract.
The Main Dish: How to Spot CFD Scammers
If your cravings for the most important lesson in your trading CFD scam tutorial was boosted by the fact brokers can disguise themselves as scammers, then brace yourself because you are about to grab a dose of the spicy facts behind anomalous transactions.
1.Precaution yourself from dealing with brokers who charge commissions aside from spread.
Right now, you are probably aware that brokers earn money via spreads. Through this (spreads), brokers can already obtain sufficient money from their clients because it enables them to manipulate its flow by either making a tight spread or a loose spread.
- Never disclose fund withdrawal information to brokers.
A trusted broker will only require you to provide pieces of information regarding yourself and your deposits but they will never ask about your means and procedure of fund withdrawal. Even if you regard your broker as a partner, you have to keep in mind that any kind of deposit in your account (whether in the form of profit or deposit) is all yours as a client. Thus, your broker should have an off limits access towards withdrawing them.
- Say “No” to requotes
Requotes should never be included in every client’s dictionary especially when you do your business online. Why? That’s because requotes mean that your broker has entered a transaction without your approval. If this happens, they disallow you from getting into a particular market. As soon as they have already enjoyed the benefit of earning enough money, they start giving you a notice for requotes.
- No to Untraceable Cash deposits
Because of the dangers of online fraudulence, cash deposits via money transfer facilities are no longer a thing in the CFD trading industry. The truth is that brokers are not allowed to accept cash transactions as per the latest broker regulation. This then means that you should never ever make any cash deposit to your broker no matter how much proof of cash transaction is shown to convince you to do so.
The Dessert: How to protect you from Scammers
Are you full yet? Better not be because we still have a serving of the sweetest strategy to keep you away from fraud. You heard it right! You can protect yourself from experiencing the painful dilemma of having your money stolen by scammers with the help of lawyers and experts who can run after the scammers and get your money back. This can be done by carefully searching for the best online broker on the internet and enrolling yourself to a site that offers such services