- PPF Points
- 2,039
There are certain things that if you notice early, you can get out of the mess that is getting scammed and not lose a lot of money and in addition have less stress. The most evident sign of all may be the lack of regulation. It could be pointed out as a scam if the broker is not endorsed by a well-recognized financial authority such as the SEC, FCA, or ASIC. Those who are the scammers are often located in an illegal jurisdiction or in a location considered so. They still do their business with impunity, regardless of lax or zero investor protection. Companies use marketing strategies to reach their goals in their market and it is no different as businesses go big. The side where the scam broker is baiting newbies is that they give a guarantee of huge returns. A successful trading system is the only way to achieve high profits; thus, there is no guaranteed profit. A tactic a broker might use is urging one to come up with more funds within a short period of time or not permitting to cash out the profits one has made which is a clear sign of a scam situation. In case of a rightful broker, there are no queries left unanswered and also no unjustifiable delays in withdrawing. Data which are incorrect or not there, the least or none contact information, and unprofessionalism in dealing with clients are all signs of a scam. It is even possible for you to run into bonus offers. In the event that you are not fully explained to about what a certain broker is offering or you are given heaps of legal jargons to read, be on high alert for this could all be signs of a con artist. Finally, that faint alarm ringing in your head; do not ignore it but rather trust your instinct. For instance, when you find out something is wrong, it usually is. Always conduct a thorough background check, study user comments, and let neither fear of missing out nor sweet words confuse your decision-making capabilities and stand in the way of you keeping your money safe.
