Online Trading Scams: Do Not Fall Victim

Finding the appropriate broker might be a difficult undertaking for a novice investor. Be cautious and seek for reliable, verifiable sources of information while looking for the lowest South African internet trading platform. Spend some time performing general online searches, reading client testimonials and news articles to have a better understanding of the broker you are working with.

Make sure the broker is licensed

Brokers must register with a regulation in the nations where they conduct business. As a result, it is crucial to confirm that the broker you select is authorized and regulated. The Financial Sector Conduct Authority (FSCA) of South Africa or the Financial Conduct Authority of the United Kingdom are two examples of reputable regulating agencies (FCA).

Examine the broker's website

A benefit of broker regulation is that it requires transparency so that traders may make the best judgments possible. Making the amount of traders who have lost money with that broker known in terms of a percentage is one example of this openness.

Additionally, be sure the broker is listed with a real address. Brokers may conduct business online, but having a physical site shows that they are dedicated to their organization, their staff, and ultimately their clients.

Brokers who make it too simple to create accounts, make deposits, execute transactions, and get returns should be avoided, especially if there is no “paper trail”. Genuine brokers will request verified identification as well as other crucial personal data, such as bank account information, address verification, tax identification number, etc. Find the brokers website on WikiFX.

Watch your social media activity

According to a research, which bills itself as “the number one guide to forex trading in South Africa,” social networking networks are where 50 percent of scammers discover their victims. With the greatest reported loss coming in at roughly R650,000 and victims losing an average of R12,000, the report's analysis of more than 400 replies shows that Facebook and Instagram are the most popular hunting grounds for fraudsters and unscrupulous brokers.

According to the survey, 19.6 percent of frauds began on Instagram and 34.2% on Facebook. Nearly 20% of victims who were conned by people paid their con artists with Bitcoin, accounting for 47% of victims. 13 percent of all broker complaints were about JP Markets, a platform that the Gauteng High Court ordered to be placed under final liquidation after the FSCA filed an urgent application to liquidate the company and freeze its bank accounts for failing to pay out client withdrawals, fail to post client deposits to their trading accounts, and tamper with data feeds.

Are there any safeguards in place？

One of a broker's most crucial services is withdrawal and depositing money. These operations need to be simple and secure for you to do out. Typically, con artists stick to the same routines of

But a client site should make it simple for traders to deposit and withdraw money. Brokers who work with reputable payment companies that offer quick transfers and minimal costs can help with this. It's crucial to have access to your money whenever you want. Additionally, it's crucial to keep client money separate from operating funds and other investment types. Brokers should also safeguard their consumers by having an insurance coverage in place.

According to Dany Mawas of Infinox, Africa is quickly rising to the top of the list of trading hubs for all financial assets. As a result, he says, traders must be attentive about internet trading scams and make sure they do not fall for them.

Finding a solution

MyChargeBack.com, a market leader in fund recovery services, might be a potential answer if you find yourself at the mercy of con artists. The company opened an office in South Africa last year due to “... the steady rise in the number of inquiries we receive from consumers there, who have been unable to obtain refunds from merchants, from whom they purchased goods and services that were not provided as agreed,” according to Michael Cohen, MyChargeBack's Vice President of Operations. The company has recovered millions of dollars for clients in more than 150 countries while working with over 750 banks worldwide.

As a conclusion, WikiFX can be downloaded on both App Store and Play Store, to hlep to avoid online trading scams.