Is there a forex crisis in South Africa?

The amount of Forex scams is increasing, as trading is becoming a trend throughout South Africa. The trend started in 2015 and has had a steady incline ever since. The scams become a lucrative option when brokers started using the internet to market this lavish lifestyle and career path. Scammers would use these advertisements as a basis to get people to give them money to invest in the market. The clients would then receive a percentage of the profits, but in most cases, were unable to withdraw the money. Clients are usually met with additional fees and complicated processes in order to retrieve their return on investments.

Recently two brothers have taken this to the next level, by using Bitcoin to scam people out of Billions of Rand. Two brothers from Durban, South Africa, aged 17 and 20, have reportedly scammed South Africans out of 3.6 billion Dollars. The brothers started a trading company, where South Africans would give them money to trade in the cryptocurrency Bitcoin. The brothers then disappeared with the money, as soon as, profits hit Billions. Some are saying the brothers fled to London, however there is no trace of them.

This is only one of many Forex scams in South Africa, the rise in crisis are increasing at a dramatic rate, especially in the wake of the pandemic, which leaves people desperate for money. Since the pandemic started there have been many money scams in general, but has the pandemic progressed, more and more Forex scams began to emerge. People have lost jobs and homes due to the pandemic, therefore they have become easy targets for Forex scammers.

In Nigeria, there is currently Forex scam crisis, due to the amount of scams that has been going on since 2015. Recently two brothers have been caught scamming around 3500 Nigerians out of 5.3 million Dollars. They started a Forex trading company, guaranteeing 20% return a month. The brothers however, did not flee and are now facing charges of fraud.

Traders should never trade out of desperation, or with money they need. They will, almost certainly, lose all their money on the market, never-mind the scammers. It is important that people look after their hard earned money and protect it from scammers and reckless spending. When someone tells you they can make you money from nothing, it is most certainly a scam. It is not how much money you make, but what you do with the money you make.

Trading Forecasts:

GBP/USD EUR/USD Nasdaq

It appears there is a strong downtrend approaching on all three of these pairs. Traders should sell the downtrend, as soon as possible. If they cannot get in on the downtrend, they should wait till the trend is over and get in on the uptrend.