Forex Withdrawal Scam
A broker may win us over, and convince us they will transform our modest deposit into a small fortune. They may have a professional-looking website. They may have plenty of testimonials and claim to use the most advanced trading platform.
However, the kick is that once we deposit our funds, we may never see them again. When our request for a withdrawal falls on deaf ears, then we know we are dealing with a forex withdrawal scam.
What Is a Forex Withdrawal Scam?
A forex withdrawal scam is exactly what it sounds like. A scam broker may pretend to offer forex trading only to hold onto deposits. If clients request to withdraw money, a forex withdrawal scam may offer any of the following excuses:
- You have to trade a certain amount of money or earn a specific level of returns first
- You have to pay high fees to withdraw your money
- You have to pay taxes on the money, so the forex broker will withhold a certain amount
- Your account has been suspended because of security issues
- There are technical difficulties on the day you happen to want to withdraw money
- You find you can’t contact the broker–they seemed to have cut off communication or disappeared
How Does a Forex Withdrawal Scam Work?
A forex withdrawal scam works by encouraging people to trade forex. Even though forex is a highly complex, volatile, and risky form of investing, its central concept is pretty easy to understand. It’s comparing and trading currency pairs.
However, that’s where the apparent simplicity ends. It takes a lot of time, experience, and work to make money trading forex. Any forex broker who tells you it’s easy is kidding you. If they claim to have the expertise to make a fortune trading forex, it’s time to check their credentials and license. It’s safe to say they have neither.
It’s almost a waste of time to talk about forex trading when describing a forex withdrawal scam. Actually, no trading goes on at all if we’re talking about a forex withdrawal scam. They merely want to convince people to open an account, deposit as much money as possible, and then they’ll make off with the money.
Back to the excuses described above. When the customer requests a withdrawal they’ll either make excuses or disappear. Virtually none of the excuses listed above will be made by a legitimate broker.
The only one that could be true is technical difficulties. Security questions can arise, but with a legitimate broker, there will be follow-up, service, and updates. You will be given a reason that your account is suspicious. With scam brokers, this is an excuse to run away with your money.
It should be noted that no legitimate broker should be withholding a portion of your money for tax reasons. After all, a broker isn’t an employer. It’s up to you to pay your own capital gains taxes. They could claim the account was frozen because of tax problems or debts. This is also not true of brokers but of banks or credit cards.
It’s amazing the kind of fees forex withdrawal scams think they can charge. These aren’t just withdrawal fees, but inactivity fees, spreads, and commissions. Simply researching registered brokers will give you an idea of reasonable fee rates.
Forex withdrawal scams and other types of broker scams count on people not doing research and thinking they can get away with charging insane fees. Unfortunately, many do.
How Can You Spot a Forex Withdrawal Scam?
Too often, people only realize they have been caught up in a forex withdrawal scam when it’s too late and they already have their money. However, there are ways to spot fraudulent brokers before you even sign up for an account. Here are some warning signs:
- Not regulated
- No transparency
- Offers only high-risk assets
- No terms or conditions
- High fees
- False guarantees
- No contact information
- Lots of strange requirements and high fees for withdrawals
If You’ve Lost Money in a Forex Withdrawal Scam, Talk to Us
Broker Dispute professionals are the people to contact if you suspect you’re dealing with a scam broker or another type of fraud. We have the expertise and the technical solution to unmask information about crypto scams. We will launch an investigation and create a report that will boost your claim and assist you with fund recovery.