The Snake Pits of Forex Trading | Beware Retailer Traders!

Today, we will talk about a more “high-end” and seemingly “professional” broker scam. This scam exists in the trading process and cannot be easily distinguished, especially by novice traders, as it is a long-laid scam.

Although signal trading is common in forex trading and could be legit, some syndicates use it to cover up a scam. The customers' orders are only accepted through this method within the internal brokerage platform, but they are neither registered nor docked onto the international currency market. The monetary losses incurred by traders are accumulated and hidden within the brokerage and platform itself. The syndicate can continue making money if the investors keep making losses.

To make things seem more convincing, some syndicates would hire a “fund manager” or a “trading guru” to guide the participating traders and as a marketing tactic to attract new participants. Even though most of these “mentors” do not charge any commission, they could give baseless trading signals to stimulate higher trading volume among the participants – because they have another role as an introducing broker.

For more information about what an introducing broker does and how they make profits, read this article: https://www.wikifx.com/en/newsdetail/202210113634769975.html.

Often, traders are blinded by a platform's promotional campaigns, such as return spread commission, rebates, bonus deposits, and gifts, but it is important to know that there is never free lunch in this world. Overall, a general consensus is that a brokerage firm will not implement a loss-making business strategy. Therefore, on the face of it, it seems that you are making extra money, but what you are earning is actually your own money, to begin with – there is no net positive return.

The truth about the so-called deposit bonus is to trick traders into continuously depositing more funds into their accounts so that they can afford to lose more, which will contribute to the syndicates' profits. Furthermore, some scam brokers may just attract traders to deposit money, and they disappear overnight – with the funds! That is the biggest nightmare of all retail traders.

The main reason is that many traders are just starting and do not know much about foreign exchange trading. Sometimes a handsome platform bonus or tempting deposit terms are too tempting for one to reject. Whether you are a novice or veteran of the foreign exchange market, you should always check the information about the foreign exchange platform via the WikiFX free mobile application or www.wikifx.com to ensure that you and your funds are in good and trustworthy hands!