How Regulated CFD Scams work?
If they are regulated CFD companies, how can it be a scam? Let’s explain… imagine you walk into a casino and you sit down at a blackjack table. You know in this situation that it is you versus the house. You are playing head to head against the dealer. Every time you win the dealer/the house loses money and every time the dealer/the house wins you lose money. This is clear an apparent to everyone who enters a casino and sits down at a blackjack table.
Now imagine when you walk in the floor manager explains to you that this casino is the most qualified expert in helping you win. Trust them, they know how blackjack works the best and they know how to make you money. Don’t call the dealer a dealer or perceive him as an advisory, he is really your playing manager. He and the rest of the house are going to tell you how to make money. You need to show him your hand and the house will tell you exactly how to play your hand… trust them, they are the experts.
If this occurred you would probably either leave the casino immediately, laugh in their faces or both. You know well and clear that this is far from the reality of how casinos work.
How a regulated CFD (contract for differences) company defrauds its clients?
Now let’s shed some light onto your situation, trading CFDs or Forex (FX) with a regulated company like EuropeFX, itrader, 24Options, IQ options etc. Let’s just use EuropeFX as our example company. EuropeFX is what’s called a Market Maker and they do just that, they create the market, in short, EuropeFX is the house and when you lose money they make money. To make things even worse, your dealer aka account manager gets paid his or her commission whenever you lose money trading. To make this perfectly clear the house aka EuropeFX and the dealer aka your account manager have one very clear goal: To make you lose as much money as humanly possible, because they more money you lose the more money they make. This is the gist of most regulated CFD scams.
EuropeFX is known to tell their clients “We are the experts”, and “We make money when you make money, so it is in our best interests for you to make money trading.” They are definitely the experts, in making their clients lose money however the notion that EuropeFX makes money when their clients make money couldn’t be further from the truth. They are know to tell their clients each and every trade to make, keep depositing money, “Markets go up and down, you’ll see the market will bounce back and you’ll make even more money” and if this couldn’t be worse they either tell their victims not to use stop losses or will not mention them at all. When funds are lost, here comes the margin call. Because you were trading through leverage (in a market created by EuropeFX) you need to deposit more money otherwise the account will be liquidated. Now the casino aka EuropeFX requires you to deposit more otherwise your account will be closed and your account manager promises the market will bounce back and you are going to make a killing. You will get all of your money back plus more. Rinse and repeat….
This doesn’t sound right does it? Well, it isn’t and if this happened to you then a company like Wealth Recovery Expert, who has experience is recovering lost funds through a regulated CFD scam artist / legal thief like EuropeFX can help you get your money back.
What can I do?
But why do you need help from an outside company? This is a great question, not only do regulated CFD trading companies like EuropeFX have their process of extracting the lively-hood of their unsuspecting victims but they also know how to work the system to cover up their tracks and walk away Scot-free. Only someone who knows how they operate and understands the various systems in place will be able to help you get your money back.
If you have any questions, fee free to book a free consultation here.