How to Recognize a Scam from a Legitimate Online Trading Platform
How to Recognize a Scam from a Legitimate Online Trading Platform
We can all agree that the internet is a sketchy place, I believe. We’ve all come to accept that life isn’t always black or white; instead, most of the time, it’s somewhere in the middle. You will either have a good time or a bad time depending on what you try to do or find online, especially if you are not careful.
Today, we’ll discuss online trading platforms and how to determine whether a particular platform is trustworthy or a scam. We now have a lot of trading platforms that are built to steal your money as a result of the growth of cryptocurrencies and trading in general, which has led to platforms that are simple for beginners to understand and use.
We can rely on strict regulatory requirements for both online and offline trading to some extent rid the market of con artists, but since technology is advancing, so are the con artists. Because of this, it is difficult for these regulatory bodies to stop them all, and because of this, we should all do our best to educate ourselves. Having done some research, click HERE to see best legit online trading platforms. .
Now, if you’re just starting out in the world of online trading, especially if you’re looking for a reliable trading platform, you should be aware of a few things that will help you distinguish between scammers and real traders. To assist you with that, the options listed below can be found below.
How to Recognize a Scam from a Legitimate Online Trading Platform
see also The Clear Truth About Dealno1 Platform
How to Recognize a Scam from a Legitimate Online Trading Platform
1. Basic check
Before we begin to discuss some complicated topics, there is one thing that each of us can and ought to do whenever we begin the search for a trading platform. You must realize that while doing it this way is the simplest, it can still be of great assistance to you.
You can distinguish between legitimate and fraudulent trading platforms right away by using the basic search method. It is entirely up to you how you conduct this fundamental search, but there are generally two options: either you look for online user reviews and discussion threads relating to a specific platform, or you visit their website and check for their credentials, registrations, and validations from reputable regulatory agencies.
The first of these should take you no longer than one hour of your time, but the financial savings will be incredible. This is not a hi-tech search and it is nothing that will get you too deep into their operation, but it will provide a clearer picture of the trading platform you are thinking of going with.
How to Recognize a Scam from a Legitimate Online Trading Platform
2. Check authorities.
They are used by some online trading platforms to get started and give them something to show you that will make you feel better. You must be aware of the authorities that con artists most frequently impersonate, and you must flee as quickly as you can if you encounter them on your trading platform.
Vanuatu, the BVI, and the Seychelles are the bad governments that the majority of con artists use. Most of these and other similar authorities can be found on online gambling sites that accept cryptocurrency as a form of gambling currency. These are shell authorities that are created for these purposes. If your online trading platform takes any action against you, these authorities will not and cannot assist you. Look for online trading platforms that are regulated by the FCA if you want to find a reliable one. They are the ones who can defend you, initiate penalties and investigations, and do a lot of other things for your advantage.
3. The pressure
If you already have an account with an online trading platform and it or its brokers are pushing you to make bigger deposits and start or continue trading with a bigger account, you should take it as a red flag. Not all trading platforms can be seen through in the beginning, and you may even decide to go with one that seems the best.
After some time, brokers on that platform or the platform itself start suggesting you increase your deposit and open several positions with bigger investments. Most of them will start with small deposits and then increase the deposit amount because there are new and bigger opportunities awaiting. Do not do that, and if this happens, you should consider this trading platform a scam.
4. Can you withdraw your money?
If you suspect you are on a scam online trading platform, especially after reading this then you need to stop trading immediately. Try to withdraw your money and see if the platform will allow you to make a withdrawal of whatever is left there. If you are not allowed to withdraw then do not hesitate because there are means to fight this. If you made deposits over a bank transfer, Visa or Mastercard, Skrill or PayPal there are means to get your money back.
You need to go to your bank and start a chargeback procedure. The same thing will apply to Skrill or PayPal. Start the chargeback procedure and be patient because there is a good chance to get your money back. The most important thing is to stop trading and that you still have money in your trading account.
5. How did you make your deposits?
Another thing that should be a red flag when it comes to certain online trading platforms is the way they take your deposits. Any legitimate and good trading platform will offer you several ways to make your deposit, and they will include what we already mentioned above – bank transfers, master card or visa payments, Skrill or PayPal payments.
If you run into an online trading platform that takes only crypto payments and other shadier ways of depositing, then you should stay away. In this case, your options for refunding your money are very slim to none, which is why you will need to hold on to traditional ways of depositing money. If there is the possible use of your cards, with them, you get more protection as well.
How to Recognize a Scam from a Legitimate Online Trading Platform
How do I know if I’m a victim of a trading scam?
If any of the following happened to you, you are probably the victim of a trading scam:
If you answered yes to one or more of the above questions, there is a really good chance that you are indeed a trading scam victim. All of the above are key indicators that you have been the victim of an online trading scam.
Why? ” Because
A, there is no investment opportunity under the sun that can make a 300X return in a week.
B. It is impossible for a juvenile investor with no prior trading experience to become rich with just a few hours of work a week.
C, no legitimate brokerage would try to prevent you from making a withdrawal. It is your money!
D. No professional trading company would put their customers’ money at risk by providing an insecure password like 123456. And E, how does your broker make money if he doesn’t charge fees unless he is scamming you?
In other words, if your broker is making impossibly outrageous claims about the profits you can make, tells you that you don’t need experience, prevents you from withdrawing your money, provides childish passwords, and doesn’t charge fees, he/she is ripping you off. On the other hand, an honest broker will be straightforward and explain the risks that you might lose all of your money, especially if you are inexperienced.
How to Recognize a Scam from a Legitimate Online Trading Platform
Still not sure if you were defrauded?
How to Recognize a Scam from a Legitimate Online Trading Platform
Is Your Broker Regulated or Unregulated?
Many of the Forex, Binary, Cryptocurrency, or CFD businesses are not regulated. If they don’t have a trading license, it is impossible for them to trade on your behalf. To be clear, if you went to the London Stock Exchange and wanted to buy stocks, they wouldn’t let you since you are not licensed, right? In fact, you’d have to hire a licensed broker who’d charge you a fee for placing trades on your behalf. In our experience dealing with hundreds of trading companies, we have never encountered a legitimate unregulated trading platform. Every single one has been a scam.
How can you tell if your broker is regulated?
I’ll tell you how you can know. Regulated companies clearly advertise this on their websites. If you want to check this, go onto your trading platform website, scroll down to the bottom, and look for any indication that they are regulated (for example, Cysec, FCA, or Asic). If you don’t see it, they are not regulated. And even if they are, they may not be regulated in your country. For example, while Europe FX is regulated by Cysec, they also operate in Australia, where they are not regulated.
authorized by the Cyprus Securities and Exchange Commission (License No. 198/13)
Does your trading company do business out of Vanuatu, Belize, or even Estonia?
If so, and your company is based in one of the above countries, this is a key scam indicator. The reason they choose these countries is that they are known for lax enforcement and government corruption, so they have little to fear from law enforcement.
If you are not certain if your trading company is a scam, please schedule a free consultation with one of our wealth recovery consultants and we will help you determine if you have been the victim of a trading scam.
How to Recognize a Scam from a Legitimate Online Trading Platform
Legitimate Online Trading Platforms
In this post, we address the important question of whether or not there are legitimate online trading platforms. Today, more than ever, you can be browsing the web and bombarded with ads telling you that you can make money trading online. Advertisements frequently claim things like making 3X or 4X your investment, that you do not need to be an experienced investor, etc.
So the first question we must answer is: Are there any legitimate online trading platforms? The answer to this question is: it’s complicated. I’ll explain.
Online trading platforms can be broken up into 3 categories:
Identifying legitimate online trading platforms:
How to Recognize a Scam from a Legitimate Online Trading Platform
If you want to ascertain whether an online trading platform is legitimate, there are a few steps to take.
First, go to the brokerage site and scroll down to the bottom of the website. You want to see if the broker is regulated. If they are, they will write who they are regulated by and their license number. Now, go to Google and type in the name of the regulator. On the regulator’s website (i.e., ASIC), you should be able to search their registry. Highlight and copy the URL of the brokerage website, then paste it into the broker search function on the regulator’s website. If they are indeed regulated, they should show there.
If the company is not regulated, they are almost definitely a scam (99.9% of the time), and you should look elsewhere to invest. Keep in mind that it is highly preferable that the company be regulated by a regulatory body in your country. This way, if you ever have an issue or a dispute, you can easily file a claim as a local. This can simplify the resolution process.
Next, just because a company is regulated does not mean they are a legitimate online trading platform. For example, you can have a regulated company that is regulated in one country, but the regulatory reach does not extend to your country of residence. This means that they could check out as regulated, but since the financial regulatory authority they engaged has no jurisdiction in your country, they could be scamming with impunity. If you aren’t sure if they are regulated in your area, check the regulator’s website or call them directly to ask.
How to Recognize a Scam from a Legitimate Online Trading Platform
Identifying honest brokerages
Keep in mind that a regulated company can still be dishonest and be scamming their customers. Always search google for the name of the brokerage with the word scam and see what others are saying. If you see dozens of complaints. For example, a legitimate forex brokerage will never provide investment advice. The reason for this is because it is against the rules as they have an inherent bias. They make money when their clients lose money.
Are you ready to trade online?
Finally, if you are in the position where you don’t know yet how to determine if a brokerage is a legitimate online trading platform, you are probably not yet ready to invest. Why? Because you are likely an inexperienced investor, and inexperienced traders nearly always lose. So what to do? Get eductaed. Visit places like babypips.com for education of forex trading and learn the ins and outs before transferring money to a stranger over the internet. Learn how to trade, how to research a brokerage etc.
Get rich quick
If you see an ad that makes claims of doubling or tripling your money in a short time, you are looking at an ad for a scammer. When it comes to investing, there are no get rich quick solutions. They simply do not exist. But the thieves play on the naive and the desperate to sell them a dream. Even Bernie Madoff, the notorious ponzi scammer only promised returns of 10% a year. Why, because he was scamming educated investors, and he knew that if he told them he could make more than that, they would immediately know he was scamming them. Because even 10% a year is very high in the world of investing and trading.
“How to Recognize a Scam from a Legitimate Online Trading Platform: The above are few pointers you should be looking for to help you identify legitimate online trading platforms: I hope the information in this article was helpful. If you think you may be a victim of an online trading scam, please start a chat below.”
See also
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