Foreign exchange trading is an adaptable market; as a result, many people invest their time, energy, and money in it. Some investors use strategies that they follow to crack a profitable deal. However, the investment market is a technical field where each individual requires some guidance because the field involves tremendous risk. After digitalization, trading markets have advanced phenomenally.
Investors, traders, and newbies are treated equally in this market. Every day there will be a new challenge and a new battle. But, of course, it depends on how you are tackling it. For once, we may imagine that everyone is playing well in the field, but when you deal with dishonest brokers and try to withdraw your funds, the request is declined every time. Is it some kind of forex withdrawal scam? Let’s see.
What is Forex withdrawal?
The most straightforward one-liner understanding of forex withdrawal is when you want to liquidate your generated profit from the trading account. Traders and investors, especially newbies, fail to calculate risk and hence suffer a lot. They keep higher profit expectations but instead, all they get is unbearable loss. Other than losses, when an account is opened, several other significant matters are directly proportional to market risks, such as incorrect taxes, excessive fees, and forex withdrawal issues. It is when traders realize that they have overlooked a bigger aspect.
Forex withdrawal problems can be genuine, but certain deceitful brokers are taking advantage of an open opportunity.
How withdrawal works?
Withdrawals are a complicated process because there are certain rules and regulations that you need to be aware of. We will arrive at that later but first, understand when you should be alert or are facing a forex withdrawal scam.
Suppose you want to liquidate your funds:
- The first and foremost step is to send a request to the particular platform or exchange. It will register it within 24 hours,
- But there is always an exception; sometimes, the transfer amount takes time to reach your account, and the process gets delayed.
- If you have created an account but haven’t paid any commission, fees, and taxes, they generally hold your funds back, and without limitation, the overdue gets deducted from that amount.
- Commonly, any business transfer takes at least 3-5 working days to provide you cash, but sometimes it gets delayed because of government holidays or local bans.
- Hey!! All your focus should be here now. Understand that when your amount is held back for more than the stipulated period, it could be a withdrawal scam.
How do these scams work?
Many of you who are duped by this scam wonder, ‘what just happened?’ You might feel clueless, and that’s obvious; why shouldn’t you? So here is the answer to the most valid question on how these scams work.
Also read: How Much of Your Personal Savings Should You Be Investing?
It is crucial to clarify that forex trading has become popular, and many positives are attached to this trading program; however, scams are not restricted in this field. Scammers dupe beginners easily because they are unaware of the conditions that occur in the market. They are excited to start something new, and in the haste, they are chased by some deceptive brokers who even allow them to earn profit in the beginning to enhance their goodwill in the market.
Eventually, the fraudulent brokers will try to hijack your account,
- A broker with bad intentions will try to access your account by convincing you that they’ll make you eligible for a withdrawal.
- They will let you know when to request a withdrawal.
- They will impose additional fees and taxes on your funds to earn more commission.
- When the trader is ready to liquidate their asset, the broker starts ignoring them, dodging calls, and avoiding all sorts of communication.
- In simple words, they will dupe you easily and disappear.
How to identify that your broker is a Fraudster?
Frauds are uncertain and they can happen anytime and anywhere. Determining the situations where we can develop the sense that we are into a fraudulent maze is a critical matter. Here are certain common characteristics of a fraudulent broker;
- They are unethical brokers because they do not have licenses and are not registered.
- Usually, honest brokers don’t make any promises, but they do.
- If you go through their website, all the necessary information is missing.
- The customer support service is always unanswerable on calls, texts, or social media platforms.
- Such brokers mostly have negative testimonials that strengthen our doubt about forex withdrawal scams.
How can we avoid withdrawal scams?
We are not normalizing the statement, but cybercrimes have become a never-ending thing; if the cyber department catches one scammer, hundreds of others are wandering out there. Therefore, spreading awareness is better because the digital world is unsafe. If you are a beginner, you should be more alert because scammers have their pre- workings and a list of data from which they can identify your overall personality and the weak point where they can chase you. So here are a few deals that one should know about
- One permanent homework is to research before tying up with any broker
- It would help if you asked them for any license or registration
- Returns should be based on market standards. If they are asking more, it isn’t very secure.
- Don’t fall for fake promises. Always remember that any ethical broker will not promise anything to their traders.
- You should know about his goodwill and credibility in the market.
Summing Up
This article belongs to forex withdrawal scams, and we have covered all the basic answers you want to know. Also, the mantra for safeguarding yourself from such scams is to research more and be aware of your surroundings. We cannot depend on anyone because you never know who will cheat you at any point in your investment journey. Additionally, if you notice anything strange with your trade, report the platform to the authorities and verify account transactions with your banking partner.
Thank You for investing your precious time. Hope you like it; stay connected.
