How to Avoid Forex Trading Scams
The latest scam in the forex industry involves fake online brokerages offering low interest rates on their clients’ money, then charging their clients thousands of dollars in fees, and then claiming the money is “not in their account”.
The scammer is claiming to be a broker from a UK company called EFG.
He claims to be offering low-cost interest-only loans, which are often used by people who have just recently graduated from university.
He then claims to have a company that sells “unconventional” forex loans at 0% interest rates, which he claims will allow his customers to get a “real loan”.
He even has a link to an investment broker to show he is one of them.
To make it look legit, he’s also been sending out emails to the members of his email list offering a 30-day money back guarantee.
The email addresses used to send the emails have been taken from EFG’s website.
In reality, EFG is an online brokerage that offers low-interest loans.
If the broker is offering an interest-free loan to a new investor, then the loan should be considered an interest free loan.
It should also be noted that EFG doesn’t have to pay any fees.
In other words, if a customer pays for the loan, he/she will be repaid within 30 days.
But in practice, it’s not a guaranteed repayment, since the loan is not guaranteed.
In this case, the scammer also claims to “offer loans with a 1% fee” for customers who are in the US, but it’s also possible that he/her is offering loans with no fees at all.
The scam has been going on for several months now, but its been so prevalent that there is even a site called “Forex Fraud” that offers to help people get out of the scam.
The site also has a “Payday Loan Calculator” that will show you how much you can save on a loan.
In the meantime, it seems the scam is continuing to be spread on the internet, with a website for the UK being updated with the scam’s latest incarnation.
There’s also an online “Forextra” broker who is also offering low rate loans at low interest, and claims that it is “unlimited”, meaning you can get a loan at any time.
It also appears to offer “unpaid commissions” as a way of tricking customers into paying for the loans.
There have also been similar scams in Australia, with the Australian Securities and Investments Commission recently launching a sting operation targeting the UK-based EFG broker.
The commission is expected to cost the Australian economy $1.3 billion.