Forex is one of the most widely used tradable assets in the entire trading industry. Its versatility is highlighted by the fact that billions of dollars of tradable assets are exchanged using the custom tools that are developed directly from Forex-based assets. The popularity of Forex has also had some negative ramifications to the trading industry with multiple fraudulent companies forming their platforms to take advantage of traders who use Forex as their daily driver to conduct their international business trades.
The fraudulent forex market has expanded so much so that The Investment Center broker Nick Bauer has analyzed the various methods used by fraudulent platforms to extort money and assets from users without any hesitancy. After weeks of analyzing the many sides of the fraud industry, a few aspects were narrowed down that pretty much described the methods used by some trading platforms and a couple of brokering firms to commit fraud. This doesn’t simply include just extortion but also small incremental thefts of assets from user accounts.
So what does one lookout for when evaluating possible fraudulent platforms? As discussed before, the fraud spectrum is vast and not all platforms use the same method. However, there are key elements of a trading platform that you as an individual trader can inspect before signing up to determine whether it would be worth your while if you choose a specific trading platform.
Keeping The User Informed
One of the many ways fraudulent platforms take advantage of their users is by locking out a user for some time without informing them. Practically every platform might indeed need some time off for maintenance purposes but in the case of trustworthy platforms, users are informed of any pending maintenance issues before the system is taken down for a specified period.
Fraudulent platforms will not inform users about the looming shut down which how they might take advantage of vulnerable users who did not secure their accounts in time. It is probably best to stay clear of platforms that do not keep the user informed about any operations relating to the user base and shutting down of services for maintenance is part of that information.
One of the most important tools of any trading platform is security systems set in place to safeguard user data. A fraudulent platform might advertise security systems set in place for the user but they might not tell the user how their data is processed. A trustworthy platform will provide a detailed description of how every bit of data related to your account is handled. It will also assure that no third party will access your data without your approval.
Many reputable trading platforms indeed offer deals for their customers on specific occasions but the extent of discounts must be taken into account before buying into the deal. You can tell if a platform is trying to extort you if its deals are below the average market range in terms of price to performance. Even in high discount deals, the variations should not be more than 10%. Anything higher and you should keep looking for new trading platforms just as a precautionary measure.
Trading platforms represent the future of the trading system. With more and more firms supporting trading platforms, analysts predict that the regulatory authorities will be able to stamp out the few fraudulent sites within the coming years. While it is impossible to remove any fraud from a particular industry, it is possible to avoid it by following the necessary steps.