{"id":7336,"date":"2023-07-22T05:27:53","date_gmt":"2023-07-22T05:27:53","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=7336"},"modified":"2023-07-21T07:48:34","modified_gmt":"2023-07-21T07:48:34","slug":"forex-frauds-how-to-prevent-it","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/forex-frauds-how-to-prevent-it\/","title":{"rendered":"Commodity or Forex Frauds: How to Prevent it ?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds.webp 1200w\" sizes=\"(max-width: 1125px) 100vw, 1125px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-1024x576.png\" height=\"633\" width=\"1125\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/07\/forex-frauds.png 1200w\" sizes=\"(max-width: 1125px) 100vw, 1125px\" class=\"wp-image-7340 sp-no-webp\" alt=\"forex frauds\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>Forex frauds or commodity trade frauds have gone up with the advancement of technology and increased interest in financial markets, forex trading . The ease of access to global markets and the allure of quick profits make forex trading an attractive investment opportunity for many. However, as with many lucrative endeavours, this field has not been immune to <a href=\"https:\/\/www.irstaxapp.com\/erc-employee-retention-credit\/\">fraudulent schemes<\/a> designed to exploit unsuspecting individuals. Understanding the tactics forex trade fraudsters employ is crucial in safeguarding your investments.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Watch the True Stories on Commodity &amp; Forex Frauds<\/h2>\n\n\n\n<p>CFTC puts up the video below on its\u00a0<a href=\"https:\/\/www.cftc.gov\/LearnAndProtect\/videos\/index.htm\" target=\"_blank\" rel=\"noreferrer noopener\">website<\/a><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"True Fraud Stories: Hunter Wise\u2019s Silvery Slope\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/43FTPuTCDTY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Five Common Tactics of Fraud in Forex Frauds<\/h2>\n\n\n\n<p>Here are five common tactics that these unscrupulous individuals often apply:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1.Offering Too-Good-To-Be-True Returns<\/h3>\n\n\n\n<p>One of the most common tactics used by forex fraudsters is the promise of excessively high returns with minimal or zero risk. Any legitimate financial advisor will tell you that high returns always come with high stakes. Therefore, anyone promising sure profits, especially if they&#8217;re exorbitantly high, is a tell-tale sign of fraudulent activity. Remember that forex trading, like any other form of investment, cannot guarantee returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Aggressive Sales Tactics<\/h3>\n\n\n\n<p>\u00a0Fraudsters often use high-pressure sales tactics to rush potential victims into making decisions. They often present a &#8216;limited time offer&#8217; or a &#8216;once-in-a-lifetime opportunity&#8217; to get you to invest without proper research. The sense of urgency can lead to irrational decisions, which is what these con artists bank on. Legitimate forex brokers will give you ample time to think and decide without pressure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Unregulated Brokers<\/h3>\n\n\n\n<p>The forex market operates across various jurisdictions, which presents opportunities for fraudsters to set up unregulated brokerage firms. These firms may offer enticing trading conditions and sophisticated-looking platforms, but they operate outside the regulatory framework that protects investors. Always ensure you trade with a broker regulated by reputable financial authorities like the Financial Conduct Authority (FCA) or the Commodity Futures Trading Commission (CFTC).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">How to check if the broker is registered with CFTC ?<\/h4>\n\n\n\n<p>In order to prevent a fraud in future , the first thing you must do is to visit&nbsp;<a target=\"_blank\" href=\"https:\/\/www.nfa.futures.org\/basicnet\/\" rel=\"noreferrer noopener\">this page<\/a>&nbsp;on National Futures Association (NFA) website ,which conducts registration and examination of intermediaries under the supervision of the CFTC, to check if the broker is registered with them . You can check following things from regulator&#8217;s website&nbsp;<\/p>\n\n\n\n<ul>\n<li>Registration<\/li>\n\n\n\n<li>Disciplinary or regulatory history<\/li>\n\n\n\n<li>Financial information<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">4. Manipulation of Trading Software<\/h3>\n\n\n\n<p>Some fraudulent brokers manipulate their trading software to create unfavorable trading conditions. For example, they may alter the bid-ask spread to ensure the trader is disadvantaged. They may also manipulate prices and slippage to cause losses. In some cases, they may even prevent traders from withdrawing their funds. To avoid falling prey to such schemes, one should consider trading with well-established brokers with a proven track record and positive reviews from numerous users.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Non-Transparent Fee Structures<\/h3>\n\n\n\n<p>Fraudulent brokers often hide their fee structures, making it difficult for traders to understand the costs involved. These costs can quickly add up, eating into your trading profits without your knowledge. A legitimate broker will always provide a transparent fee structure and ensure you understand all the costs before trading.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Watch the Binary Trade Fraud Video<\/h2>\n\n\n\n<p>CFTC also puts this video on its website.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"The Truth Behind Binary Options Fraud, Episode 1: Dissecting the Scam\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/jSXhekolvx8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">What is Binary Trade in Commodities?<\/h3>\n\n\n\n<p>In binary options trading, the trader is essentially predicting whether the price of a particular commodity will be higher or lower than a pre-determined price at a specific time in the future. It&#8217;s called &#8216;binary&#8217; trading because there are only two possible outcomes &#8211; &#8216;yes&#8217; or &#8216;no&#8217;. If the outcome aligns with the trader&#8217;s prediction, they make a profit. If it does not, they lose their investment.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-background\" style=\"background-color:#c6fee7\">Suppose you believe that the price of gold, which is currently $1,900 per ounce, will rise above $1,950 per ounce by the end of the trading day. You decide to buy a binary call option for $50 (your investment) with a payout of $100 if the price of gold does indeed rise above $1,950. If at the end of the trading day, the price of gold is $1,955 per ounce, you&#8217;ll receive $100, making a profit of $50. However, if the price of gold ends up being below $1,950, you would lose the $50 you invested.<\/p>\n\n\n\n<p>In conclusion, increasing forex trading fraud or <a href=\"https:\/\/www.irstaxapp.com\/2023-irs-scams\/\">scams  cases<\/a> calls for vigilance and comprehensive due diligence. Protect yourself by verifying the credibility of brokers, understanding the potential risks associated with forex trading, and avoiding investment decisions based on aggressive sales tactics or unrealistic promises of high returns. Remember: if something seems too good to be true, it probably is. Stay informed and trade wisely.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Forex frauds or commodity trade frauds have gone up with the advancement of technology and increased interest in financial markets, forex trading . The ease of access to global markets and the allure of quick profits make forex trading an attractive investment opportunity for many. However, as with many lucrative endeavours, this field has not [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[54],"tags":[],"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/7336"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=7336"}],"version-history":[{"count":2,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/7336\/revisions"}],"predecessor-version":[{"id":7341,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/7336\/revisions\/7341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/7340"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=7336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=7336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=7336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}