CFD Trading Scams

The Disease – CFD Trading Scams

The Cause

Victims fall prey to experienced scammers.

The Disease Deterioration

No one answers your calls or emails for several days.

How Do You Feel

Optimistic when you’re “making money” at first and cheated when you can’t contact the broker.

How Do I Know if I Have Been Infected?

If your money is gone and the broker is nowhere to be found. 

How to Avoid?

Be wary of unregulated brokers, lifestyle ads, and cold calls. If it’s too good to be true, it is. 

Solution if Infected

Already infected? Get in touch with the Scam Doctor to help you recover your funds. 

What is CFD Trading?

CFD trading is the buying and selling of CFDs (contract for difference). Traders speculate on financial markets, such as shares, forex, indices, and commodities, with the advantage that ownership of these assets is not required. 

Instead, you generate profit from the price movement when trading CFDs. Traders can speculate on these movements either up or down, and how correct your forecast is determines what you gain or lose. 

This type of online trading has become more and more popular, as anyone can do it from the comfort of their own home. But with increased amounts of traders and brokers comes an increased risk of CFD trading scams that are easy to fall prey to. 

Is CFDs Legitimate?

CFDs are a legitimate investment and trading product, which means the problem with CFD trading scams has nothing to do with the practice itself. Instead, the issue lies with shady businesses posing as legitimate brokers. 

These scammers often set up offices to appear legitimate, and they aggressively pursue clients, using various methods to get them to trade. Common strategies include email, text messages, and calls to lure victims. 

Another primary source of CFD trading scams comes from unregulated social media advertising. Despite efforts from giants like Google, Twitter, and Facebook to avoid it, there are still plenty of non-regulated brokers advertising their services on these platforms. 

Whichever way they try to trick unknowing victims, the outcome is always the same: these fake businesses steal the trader’s money and vanish. 

Common CFD Scams

Some of the more widespread CFD scams include the following.

Cash Deposits

Cash deposits are no longer standing in the online trading world, as current regulations prohibit brokers from receiving cash. The reason for this prohibition is that there is no record to prove you made the payment. Unsavory brokers will ask you for cash and then claim they never received the payment. 

Requotes

The most well-respected brokers have no requotes on their platform. Requotes prevent you from entering a trade because the broker doesn’t want you to, which generally occurs in situations when you are likely to profit from your trades. 

Unnecessary Withdrawal Regulations

It’s necessary to create an account when you sign up with a broker, but you should never have trouble withdrawing money from it. Fake brokers place many unnecessary withdrawal regulations on your account that make it nearly impossible to get your money.