Online Trading: Beware of Forex Scams Trading, a Booming Business
Forex and Crypto trading has been booming since the beginning of 2023. Many individuals are keen to take control of their financial situation, and as a result a boom in the trading practices can be observed. In theory, Forex and Crypto trading is a way of building up assets and generating additional income, which is an obvious motivation at a time of widespread inflation. In practice, however, recent statistics show that less than 1% of traders generate significant and consistent profits. Given that around 9.6 million people actively trade worldwide, this means that fewer than 100,000 people in total manage to stay successful in this economic practice.
France’s Autorité des Marchés Financiers (AMF) considers that three simultaneous crises have been the cause of international inflation: the health crisis, the energy crisis and the political crisis have impacted the state of the sector and helped generate high interest rates and a decline in the availability of liquidity. However, this did not prevent private investors from investing their capital in trading, and as a result, the Forex and Crypto sector remained buoyant despite the market’s inherent disruptions.
The AMF had already published a report outlining developments under the Sapin II law. Specifically, Article 72 of the Law on Transparency, the Fight against Corruption and the Modernization of Economic Life, of December 9, 2016, prohibits the direct and indirect advertising of financial products such as CFDs, binary options and Forex trades. This law has not prevented trading platforms from becoming popular with individuals, who often fail to appreciate properly the risks involved in trading.
Staying Alert to Forex Scams
Although popular and regulated trading platforms state that the capital invested by individuals is at high risk, there is as yet no specific framework to protect those unfit to bet their savings, while at the same time guaranteeing the commercial interests of the entities operating these platforms. The very definition of fitness to trade is a matter of debate among regulators and other governmental and institutional bodies.
Given that the majority of people suffer massive losses when trading, it seems appropriate to point out that this economic activity is unreliable. Coupled with the fact that establishing a general regulatory framework around trading is a task in perpetual development, this leaves the door open to abuses and scams.
Our network has already taken stock of the future objectives and new recommendations of the European regulator, ESMA, and highlighted the abusive techniques used by certain unscrupulous brokers to profit from their customers’ capital losses. Our recommendations remain unchanged: extreme solicitations to invest more and promises of secure gains are generally the gateway to abusive behavior by brokers towards their customers.
Our Forex lawyers defend your rights
The lawyers in our network are specialists in asset recovery in Europe. Our expertise lies in investment law, and our practice focuses on defending Forex and Crypto traders.
• In what kind of situations do we intervene in?
The Financial Fraud Lawyers network represents individual traders who invest through entities regulated by the financial authorities and who have suffered asset losses as a result of potential abuse by brokers. Our experience in recovering lost funds and assets has proved satisfactory, and we have successfully assisted many individuals in recovering their assets.
• How do we handle litigation?
Law Firm Mikov specializes in non-contentious resolutions with brokers. This means that the procedures initiated to recover your lost investment are out-of-court. Should your situation require criminal proceedings, we will redirect you to specialized members of our network.
• Do I have a chance to get my money back from forex scams?
In addition to your legal representation before the broker and the relevant authorities, we offer a detailed technical analysis of your case, with the support of our partners who are experts in the economic and financial markets. To protect our interests and yours, we only take on cases where we believe we have a good chance of success.
• How to estimate your chances of recovery?
We offer a free preliminary analysis of your documents relating to your situation with the broker. If it appears to us that the broker has committed violations, we will be able to defend you against his actions. We also offer a technical analysis service for more complex files, for which our financial expert partners assist us.
Disclaimer:
The Financial Fraud Lawyers network aims to inform private investors (traders) of potential malpractices by Forex and CFD brokers. Our mission is to assist and protect traders when they encounter brokerage practices that go against their interests.
Our articles are intended to warn, share and inform the public about the legal risks of Forex and its players. Trading financial products and CFDs as well as investing on online platforms carry legal risks.
The article was written in good faith, based on public information and client testimonials valid at the time of publication. Our articles concern the protection of the interests of individuals on online investment platforms and are published in accordance with our right to inform the public about our activity. This article is not to be considered legal advice.
