The Bright Side Of Cfd Trading
With the passage of time, humanity has grown smarter and wiser whether it is education, industries, agriculture, science & technology and every other sector. Same is the case with the trading sector where it has grown from a physical asset market to digital/virtual asset world. Trading has not only provided a new platform to people who were already doing trading in physical markets but has provided opportunity to people who have access to internet and have even a few hundred bucks to spare and spend in different types of trades currently taking place online.
In online trading, CFD (Contract-For-Difference) has emerged as a unique and convenient trade for investors who do not have huge amount of savings in their accounts, but still want to make a living out of online trades with whatever they have to spare. CFD trading is a process where one does not have to buy assets/shares of a company but agree to pay the different through buying and selling of assets/shares at a decided date/time on high leverage. At times, these leverage can be from 1:500, meaning that an investor can trade for up to $250,000 CFD with only $500.
Dark Side Of CFD Trading
Just like every trade, CFD also has the potential of bringig people from rags to riches or riches to rags and people (whether new or experienced) are aware of this fact when they choose it over others. However, what comes as a surprise for investors is the fraudsters and swindlers who have even hijacked this trade to an extent where they are able to make a fool out of people and have them invest into something that does not even exist.
With time, these swindlers have become advance with their tactics and maneuvers to lure people and deprive them of their hard earned and life savings. As a result, people have not only become hesitant to trade in CFD(s), but have also started losing faith in any online business or trades to begin with.
How CFD Trading Scam Works
With so much potential in CFD trading, people are being attracted to this platform and as a result, there has been numerous brokerages that have come into being, offering their services in CFD trading and are constantly competing with each other. This is achieved by providing their customers with best services, leverage, benefits, facilities, and most of all, online content that is presented to potential customers through their website. And, this is how the fraudsters start their work:
Websites Rich With Content And Organized Format
The very first trap that the fraudsters set is by creating fake brokerage websites that look completely legit as they present customers with website interface and content, which looks exactly like how one would expect from a legit brokerage site. The reason behind this effort is to ensure that people do not end up detecting any mistakes or flaws on their website that can alert potential clients.
They Can Reach Out Through Phone Call As Well
These fraudsters are so pro with their scamming tactics that they even call people and pitch the same promises, benefits and riches to people to get them to invest their money and if they find someone interested, they make sure that person’s financial resources are sucked dry by the time they are finished scamming that unfortunate person.
They Sell What People Want To Buy
In order to turn prospects into clients, these fraudsters ensure that they say what people want to hear such as “how customers can make huge profits with investments as low as $250”, “Negative account protection”, “pilot CFD trading phase with zero investment”, “no withdrawal fees” or “leverage of up to 1:500 or 1:1000” etc.
When people see such offers, they cannot refuse or turn away and end up investing on such fraudulent accounts.
You Make An Account And Money Starts Flowing In
Once the people are trapped and have set up an account with such brokerages, the final bait is set and that is to have people invest in CFD and then show them that they have earned huge profits and transferring the difference (in positive) in these accounts. This makes people desperate to earn even more by investing more of their money.
When people end up investing a large amount, these scammers either stop responding to them or their withdrawal request and at times, even move their site to a different domain name, which leaves people wailing for their precious money.
Why People End Up Getting Scammed?
By now, we know how CFD trading fraud takes place at cfd trading but the real question is, why people get scammed in the first place and the reasons are:
Lack Of Opportunities In Physical Markets
The reason why people get lured into such traps is because there are not enough employment opportunities in any sector and as a result, many people are unemployed and desperate to make a living/fortune out of what they have left.
False Promises And Fortunes
When investing, people simply ignore to check the legitimacy of a brokerage and become blinded by the promises and fortunes such brokerages offer them. Furthermore, these brokerages make false statements of charging no fees for withdrawals or other educational programs, which again captures the attention of the customers.
Try And Do The Right Thing
It has become sort of a practice for people to take no actions once they have been scammed by such fraudulent brokerages. This kind of behavior serves as a source of encouragement for fraudsters like these and as a result, people remain unaware of such frauds and keep falling prey to these swindlers.
Although it is rare, one is able to recover their money after losing to such online frauds as it is really difficult to set any regulations for these kind of fraudsters at present, but if people start voicing their experiences in the online communities and report them to local authorities as well as entities such as FCA, which is an entity that shares reviews around a number of brokerages as well as fraudulent brokerages.
Furthermore, people can also try reaching out to Money-Back, which is an online organization, created by expert lawyers and psychologists to help people get their lost money back at very reasonable and negotiable prices.