CFD Trading Scams
The online world is quite fast and it is only getting faster with the passage of time. You now have millions of people from all over the world who are actively trading on a variety of online trading platforms. You might have encountered a few online trading ads yourself. Online trading provides people with a possibility of making money from their homes. The best thing about this particular activity is that you can make money fast if you are good with your trading skills. Not to mention the fact that you will not have to pour in a lot of money before you can start getting some returns.
However, the biggest problem of this online trading world is that you now have many CFD trading scams. I will explain to you what these trading scams are all about and how you can avoid them. If you have already become a prey to one of these scams, you still don’t have to worry because I have the solution to that as well.
Understanding CFD Trading
Before we get into the details of CFD trading scams, let’s talk about CFD trading for a moment. This is the easiest format of trading today, and also the most famous one. It allows people from any country to be in many financial markets at the same time. The limitation of the old way of trading was that you could trade in just one market at a time. On the other hand, when you sign up with an online CFD broker, you can trade in many financial markets. That’s because CFDs are contracts for difference, which means they are derivative trading vehicles that allow you to trade the value of assets without trading the assets themselves.
You don’t own the asset when you trade a CFD. This means you can open your orders in many markets at the same time. Some of the common and famous CFDs that you can trade today include stocks, commodities, indices, and many others.
How CFD Trading Scams Work
· A Fake Trading Bot
One of the ways these online scammers will get you is through the use of a pitch about some online software that they have designed to help you make money. They talk about this amazing software, which is apparently a trading bot, that can trade on your behalf and make all your trades successful. They usually start with the premise that some software developer was told by corporate clients to make some software tool that made trading easy. This developer usually ends up creating some algorithm that allows its fake trading platform to be successful with more than 98% of its trading predictions.
So, when people get to know about a trading bot that can make them money with a guaranty, they jump on it straight away. In reality, no such thing is possible. The online trading world is real and not rigged. You can’t predict trades in it just like that. You can’t predict the outcomes of online trades with that much accuracy just like you can’t predict the weather forecast with 100% surety. So, when you sign up with these trading bots, you end up on a regular trading platform where you have to deposit fees again to trade.
· Huge Leverages for the Lure
One of the ways fake online trading platforms will pull you into their traps is by telling you that you have some huge leverages on your trades. So, when you look at the leverages, they are really huge. However, I have to tell you here that a broker can only offer you so much as leverage. When you see things going beyond 1:1000, you can be sure that you are not signing up with a registered and regulated company. This is very huge and can’t be offered by any online forex broker just like that. Not to mention, new traders are not even aware of the concept of leverages fully.
They can end up losing all their money plus some more if they go with such huge leverages right from the start. So, when you notice that an online broker is all about its leverage and nothing else, you can be sure that you are about to be scammed.
· Big Signup Bonuses
Of course, if you are interested in trading, you first have to open a trading account with an online broker. To open that online trading account, you will have to put some funds in that account. That’s where you realize that you can get some huge bonuses. There are brokers that are willing to offer you 100% bonuses on your initial deposits. Do you know what that means? That means you can get 100% increase in your first deposit because of the broker. So, if your first deposit is $100, the broker will contribute another $100 and you will have a total of $200 in your account.
These are luring methods that work really well for traders who are still new to the game. The best brokers will not force you to sign up with them based on their bonuses. They have a million other things to brag about that are much more beneficial than a signup bonus.
What to Do When You Have Been Scammed
There are so many CFD trading scams out there that you can get scammed by one even if you dodge 10 others. However, when you have been scammed, you have to look into the options that you can avail. That’s where Claim Justice comes in. We are a great online company that can provide you with some great help with your money if you have already been scammed. We can teach you all about online CFD trading scams and how you can avoid them. We also have a team of professionals that is there to help traders get their money back.
We recommend that you contact us now and get expert help.