​Scams Under VAM: A Trigger for Failure Rate at 100%!

All platforms reliant on the valuation adjustment mechanism (VAM) are tacitly accepted as scammers in the forex market. However, the widespread lack of this knowledge among novices leads them to hefty losses. Therefore, this nasty scam is disclosed herein for your reference.

Similar to a zero-sum game, ‘valuation adjustment’ refers to a situation where profits gained by one of two sides are lost by the other. Yet the scam based on this is a blow to traders as a ‘negative-sum game’ because of unfair game rules in the forex market.

Promoting the pattern of STP/ECN fraudulently, scams based on valuation adjustment take users orders as a direct hedge against each other on the same forex platform instead of launching them to the market. In this way, the total losses suffered by clients convert into all gains enjoyed by scammers.

Illegal platforms take reaping profits as their goal, thus imposing losses on traders by approaches such as slippages and mandatory order deletion even though users orders can be profitable.

Features of valuation adjustment scams are listed as following:

1. Platforms are not efficiently regulated but operated under a cloned license or beyond permission.

2. They usually have been built up recently.

3. Slippages often happen, which is more frequently seen by lucrative orders than unprofitable ones.

4. Quotes of scammers are different from those of other forex brokers.

5. Withdrawals are hampered.

6. So-called ‘tutors’ unveil their plans of making orders even trade on traders behalf.

7. Cracked versions of MT4 with relatively low prices are employed.

Please keep the notion in mind that forex platforms described above are illegal, which aim to make money before running away. As a result, a 100% wipe-out will ram into traders once they are in!

As a reminder, WikiFX is ready to help you search the qualifications and reputation of forex platform to protect you from hidden dangers in the risky forex market! (bit.ly/wikifxIN)