How a scam broker scam your money step by step!

Wisdom

This is what I had experienced with a scam broker called "RoyalMarketOnline". I think all scam brokers doing the similar things to scam people's money until they find out it is too late. As being a victim, I would like to share this to those people who has a chance to view this post and hopefully I can save your money being scammed by these heartless and scam brokers.

Step 1: A promotional adv. on social media such as FB, Twitter....request you to download a mobile app called "SnapCashBinary"

Step 2: Open a new account at minimum amount at USD250.

Step 3: A financial adviser is assigned to follow up your account and he would ask a series of questions in trying to get to know you as much as possible, including your current job, personal background, financial status, credit card info. and fixed assets. Once the information is collected, he would assist you to do some trades with small amount of bets. Of course, every trade they instruct you to do, you would earn a good profits and even double your investment in a short period of time.

Step 4: During the trade, the financial adviser would request you to provide your credit card information as he claims this is used to verify your identity. But behind the scene, they try to swipe your credit card in secret to withdraw some money from the bank without your authorisation. After a few trades, the money has been transferred from the bank to their merchant account. Then, he would explain to you that you have nothing to lose as it is stored in your trading account. They also guarantee that all the money you put in is to make your capital gain more and more.

Step 5: This guys are well-trained and they don't provide you any direct line to customers. They would advise customers to communicate via Skype for ease of communication. If you don't have Skype account, they would call you directly and assist you to trade. The numbers they use are all IP number which can not be chased and reachable.

Step 6: Once the money is deposited to the account, you would not be able to withdraw it afterwards and they would try to convince you to trade as much as possible. Even you make a withdrawal request to the customer service team, the request would route back to the financial adviser and there is no way you can get your money back.

Step 7: Trade or not trade: If you trade, they would advise you to increase your bet to USD1K-3K at each trade and put you under an insurance scheme for investment protection. But of course, this is a sweet words without contract binding and the aim to build you a confident and convince you to trade with them. The first few trades you may make profits, as you increase your bet higher, you would end up losing all your money as the system is totally controlled by the scam broker. If you do not trade and make a withdrawal request, they would not also allow you to withdraw the money and would keep convincing you to trade. They even ask customer to provide them the account logon info. and would trade for them on behalf of customer's consent. Either trade or not trade, you would end up losing your money at the end.

The_Geek_MH

Well, your first mistake was to click on fastcashbinary, that signal service is a total scam.... sorry to hear about it though...

Trezo

It's clear that something's wrong here from the very start. The minimum deposit shouldn't be determined by a broker. You should choose the one you like.

Qwerastis

Broker is the one who makes you greedy by offers you much entrust than you go for the large investment. Never go for large investment if you make a wrong move than you loses your all the money and from which broker earns the profit. So think well before making any investment.

Ennennera

Offering bonus, which is quite unrealistic, is the first step takenby a scam broker in order to attract people towards himas people love to take things, especially money, in free. But folks! It is really hard to earn money. You have to face huge difficulties at the start of any business. Stay long!

The_Geek_MH

the bonus is not the first thing a scam broker does to attract new business but is one way of locking it in... the brokers use a lot of misleading information and promises of fast cash, that's the first step in a scam.

Ferin

You need to work with good protective tools whenever you get online as you can be attacked by malware, viruses, and hackers. Moreoever, most of the bonus offers also end up as a scam. The lack of adequate knowledge can lead you towards that situation. Am I right?

Qwerastis

The first and foremost tactic of the scam broker is to offer huge bonuses on order to attract the people by enhancing their greed. Moreover, they also send you emails related to the rewards. You have to stay away from such things in order to stay safe.

Qwerastis

In this article the author decribes the fators and the various ways about how a scam broker may scam you causing your investment to liquidate in no time, this article is worth reading both for the newbies and the experienced person as it will help both of them to take decision about selecting a broker.

Liverekh

It is all part of experience gaining in the market. It is good that you have shared your experience with other forum members. I appreciate it. This is relevant for all newbies. Unfortunately, scammers are around us and we need to pay high attention and to check each broker before we make a decision

Liverekh

I find this as a very good and informative article. In order to fight scams we need to spread word and understand their techniques used to scam especially new and inexperienced traders. Try not to learn about scamming on a hard way

Gook32

Excellent article and I think that everybody should read it well. There is such a huge number of scammers everywhere, that people need to be informed about their scamming techniques in order to protect themselves and their money from these terrible people

Liverekh

Most of the scam brokers try to engage people by offering fake bonuses and unrealistic profits. People become greedy after looking at these offers and they trust them. By giving the fake expectations, these brokers eat the money of people in a flash. Unfortunate!

Granithris

Unfortunately, such situations are not uncommon today, and many brokers still use rather old methods of fraud, but there are also those who invent such frank and crude methods of deception that you are surprised just breathtaking. So it's worth checking out the company you are going to cooperate with and in which you are investing your money. You have to trade on your own without listening to the broker or employee of the company. You must decide for yourself how much money you will use and when you will close the position. Although, if the broker has full access to the accounts, then you just can't control anything. Actually, this is scary, because these are the companies that make traders think that trading and forex is a complete fraud...

amirarab

If you dont want to lose your money at first you should recognize scam brokers
In my idea all of the scam brokers have some special features that help us to recognize them
these are that features:
Spread widening:
This is the all-time favorite of brokers! Spread widening typically occurs at irregular intervals. Broker may refuse to assign your position at a price that it quotes (even if it is thoroughly up-to-date) and safeguard themselves by imposing a wider than normal spread on the trader. There's nothing inappropriate with that if it's done publicly by the broker of course. In fact, nothing prohibits brokers from applying a broader spread than required to obtain several pips from the traders. What can you do to stop expanding the spread? Choose a broker not known for excessive expansion, or simply seek not to trade during high volatility intervals (important news updates).

Slippage:
It's not deceitful on its own, as the broker's liquidity suppliers can target market segmentation pretty fast and the broker can sometimes simply have no option but to execute your order at a slightly worse price. However, some brokers employ slippage for their profit and recommend you to purchase a currency pair at a price slightly higher than they will (or trade at a slightly lower price). The major difference in their constant benefit. Having a broker without slippages is difficult but you can try joining one with fewer. You may also seek to prevent market order trading and move to limit orders; add reduced slippage parameter in orders when using EAs.
Disproportionate swaps (overnight interest rates):
Brokers bill and charge overnight swaps regarding the difference between the currency pair's short-term interest rates and the central bank settings. Unfortunately, the disparity may not always be rigid – if the broker charges the swap from the investor, it will compensate more than required; however, if the broker pays the swap, it will pay less than expected. If the gap is very small (for example, EUR/GBP currently has 1.0 percent and 0.5 percent interest rates; USD JPY has 0–0.25 percent and 0.1 percent), the investor would have to be charged by swaps in both directions – irrespective of whether you're long or short on the pair. Strictly, on intra-day trading, go for no-swap accounts picking a broker by examining their trading conditions for better swaps which will prevent this trick.

Overleveraging:
This is not even a deceitful brokering technique – it's usually traders who just fall for the larger volumes. And the brokers are happy to sell such greater quantities, as they will boost their earnings per spread pip. Notice, do not overleverage yourself. If you can afford it, trade without any leverage (1:1).
If you are serious about trading Forex, you have to know the appropriate broker which has its trading platform (MT4 or anything else) linked to one of the inter-bank trading platforms on a bridge. So, how can we figure out that they are not? Here are some tips:

If you place your position and execution is too slow
If your SL is hit and the price is a long way off
If your order has been closed over or below your SL (slippage)
If you execute your pending order far from price (slippage)
If you can't close your order profitably
If the price varies from other brokers (prime),
If you trade well, and your broker wants to interrupt your business
I hope it be useful.

raajchavan

A sensible individual purchasing the football wagering suggestions will certainly acquire from a site which the extra hassle-free settlement choice instead than the one which has a tiresome settlement procedure.

Erik_D

That's so cruel. But I think there are still reliable brokers