Forex managed account fraud – Avoid at all cost in 2021
Forex managed account fraud is very popular these days. Have you traded very successfully with a new offshore broker or recently opened an account with a managed account provider?
Your deposit has already doubled and you now want to cash out the winnings and celebrate a bit? Now the broker ignores your payment request and the customer service no longer answers. A short time later, your account is frozen and finally the provider stops its service.
Such stories make forex traders shudder, and yet unfortunately these things happen again and again. But in most cases the loss could have been avoided if you had just done a little better research in advance before transferring your hard-earned money to a supposedly reputable managed account provider or forex broker.
The best way to avoid fraud in Forex trading is not to transfer your money to a dubious provider in the first place. Be careful and find out about the provider of your choice in advance before you transfer a cent. Below you will find a few tips on how you can usually identify fraud in the Forex area in advance:
Forex managed account fraud – 8 STEPS of what you have to do to avoid it:
Forex managed account fraud can lead to you, losing money. That’s why we created those 8 simple steps that you have to follow, just to be safe.
Promised too high returns
Fraudsters usually try to lure you through the firmly anchored desires of quick wealth and prosperity. Dubious managed account providers advertise, for example, with profits of 50% per month, dubious forex brokers usually with very low spreads that are fixed in all market phases.
The trick with both methods is to get you to make a deposit that will never be withdrawn. The same goes for most Expert Advisors at dumped prices of $ 99 or less.
Just think logically!
If you have developed an EA that generates a monthly return of 20%, with a deposit of 10,000 euros you would have around 90,000 euros in the account after one year. After 2 years it would be around 800,000 euros Troubled to sell an EA for $ 99? Probably not, right? See also the effect of small but constant profits .
Basically, if it sounds too good to be true, it usually is!
Very little or no risk
If you hear these words related to Forex or Managed Accounts, you better steer clear of them. Forex trading or trading in futures in general is always subject to an increased risk. This fact cannot be denied.
Time pressure
The same applies if an offer is supposedly only available for a few days or even hours. This is particularly common with Expert Advisors at dumping prices. If you read sentences like: “Only 8 hours for $ 99, then $ 299”, you better stay away from it.
Company location, imprint and regulation
If the provider is obviously trying to conceal his identity with addresses abroad, or if no name, address or valid telephone number is given in the imprint, then stay away from it. The same applies to regulation. If the provider is not regulated by at least one regulatory authority such as the NFA, BaFin, FSA or CySEC, forget about the provider.
Recommendations
Do not turn off your brain just because a friend or acquaintance recommended a provider in which you are invested. This tactic is seen more often with dubious managed account providers. The first customers receive a very good service and also regular payouts. These customers then naturally bring more and more acquaintances to this provider through recommendations. If enough funds have been collected at some point, the accounts will be crashed and in most cases the funds will be gone. Just like the alleged account manager.
Forex broker experiences and reviews
Serious Forex brokers and CFD brokers are always proud of their service and publish their names, addresses and which regulatory authority they are subject to clearly and quickly for everyone. There is no attempt to hide anything here. Why even if everything is going well. The same applies, of course, to providers of managed accounts.
Basically: Find out
in advance about independent experiences and reviews of other customers. Contact existing customers and ask them about their experiences.
Read more about different financial frauds in our – Scam section
