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Forex is one of the most popular trading types. However, like any other investment-related industry, there are huge risks of being deceived when dealing with an Internet-based trading platform. Forex withdrawal scams are the most common causes of financial failure for traders. The main disadvantage of any virtual trading platform and remote association is that you never know for sure that you are dealing with a reliable investment firm. Therefore, anyone can find themselves in a situation where they cannot receive their money invested or earned through trading. And this is where chargeback services come to the rescue.
However, before contacting a funds recovery company like Global Fraud Protection, you should be 100% sure that your broker is a scammer and there are no objective reasons why you cannot withdraw money. So, before you panic, consider all possible legitimate withdrawal denial scenarios:
- Make sure you have successfully passed the verification;
- Check the maximum and minimum amount of allowable withdrawal;
- Sometimes the transfer of funds takes more time than you expected;
- Problems with the transaction caused by the bank;
- You may have violated the rules for bonus redemption.
Forex Withdrawal Scams – How Does It Work?
This type of scam is quite varied; among the most common withdrawal issues are:
- Balance lock;
- Inability to pass verification for mysterious reasons;
- Zeroing an account;
- Crazy commission rates that were not mentioned in terms of cooperation, etc.
You may not even realize that you have contacted scammers for a long time. To your questions about where your money is, the broker will respond with dubious excuses like “You are in queue for withdrawal” or “Money has been sent, and you’ll get them soon.” This trick is used to buy time because it is known that the speed of decision-making is an important aspect of successfully resolving fraudulent cases.
Why Is Brokerage Regulation Important?
The regulator provides legal protection for traders and investors in disputes and investigates their complaints. Regulatory authorities also audit the broker’s activities for non-compliance with its licensing requirements. According to most trading websites, forums, and blogs, regulation is the first thing to look for when choosing a broker. This is why most scammers tend to show off their licenses and acceptable regulatory status. However, don’t rush to invest your money under the impression of pleasant lies.
Many scammers forge documents and share fake data. So before cooperating, check the integrity of the information provided on the official website of the mentioned regulator. It only takes a few minutes, but it can save thousands of dollars in your bank account from scammers. Also, it often happens that scammers manipulate truthful data. They may indeed be registered with a reliable regulator, but their license may be expired.
Top-Tier Regulators – FCA and BaFin
However, not every regulator can indicate the reliability of a broker. There are many offshore financial authorities that should not be taken seriously, for example, St. Vincent and the Grenadines FSA. When researching information about trading, investigate the regulators that are the most demanding and difficult to obtain a license. FCA and BaFin are great examples of reliable European regulators you can trust. FCA is a British regulator founded in 1985. Its main goals are:
- monitoring and auditing the activities of financial institutions;
- investigations into disputes between organizations and private clients;
- compliance with fair and transparent business conditions;
- annual audits.
As for BaFin, its main activity is focused on brokers based in Germany. The aims of the governing body also inspire confidence in a broker regulated by BaFin:
- supervision over compliance with the standards for the provision of services provided by financial institutions and companies;
- monitoring the solvency and fulfillment of obligations undertaken by German financial institutions;
- control over the reporting of brokerage companies and much more
However, remember that broker claims that the FCA or BaFin regulates them may be fake, so check the information carefully to avoid being deceived.
Your Broker May Suddenly Disappear – What To Do?
If you have complaints about the broker that violated any terms and conditions of cooperation, please get in touch with Global Fraud Protection – a reliable funds recovery company. Don’t let the scammers go free – fight against Forex withdrawal scams together with a team of experienced lawyers.
