Over the last decade or so, the Forex market has grown epidemically. The reason behind the growth of the market is due to widespread technology and the internet all over the world. Correspondingly people abide by the forex market or s2trade for seeking to join the industry and bag few of the greenbacks solemnly. Mercifully, there are several Forex brokers available to help and satisfy a traders demand.
For instance, the S2 Trade scam can be a good example that has so far defrauded thousands of their clients but using multiple techniques to lure them in this scam . S2 Trade is basically a forex broker and promoter that was founded and managed by industry professionals. Typically, they gratify themselves in the consumer service department and also at their education center.
Red Flags of a S2 Trade –
Counterfeit strategies – Scammers posing as a S2 trade broker often pitch an investment trick that helps the trader to grow eventually in the long run. However, if a broker provides a tactic that is irrelevant in accordance with the market’s estimation, that can be reason to doubt him.
Aggressive sales technique – If you come across a broker or advisor who pitches an idea and demands you act on it right away because it is a once-in-a-lifetime opportunity that will not last for a longer period, it can be red flag . As any reputable promoter or broker would let you take time to research and make decisions accordingly.
Complication in documents – Circumvent an investment if the salesperson or promoter is not capable of providing you with anything in writing. Because an authorised private offering will usually be described in a private placement memorandum (PPM). However, you can recognise a sloppy offering of documents that contains typographical, grammatical, or other errors, which can be a red flag that the investment could be a S2 Trade scam.
Unlicensed promoters – If a broker approaches you to guide you about the Forex market, its norms, and several other things, always check if the person offering the investment and trading strategies has acquired proper licensure under state security organisations such as the Security and Exchange Commission (SEC) or Financial Industry Regulatory Authority. It may be suspicious if they do not hold licensure in accordance with market policy.
Asserting immoderate returns on high to no risk – It is imperative that every legitimate and inevitable investment come with a certain amount of risk. Also, commonly, investments that generate high returns are riskier than investments that capitulate low returns. You should always be sceptical about choosing such a broker that promises to give higher returns with little to no risk. You should always be sceptical of any broker or promoter who promises higher returns with little to no risk.
How can you protect yourself and your investments from the S2 Trade scam?
Initially, to prevent a S2 Trade scam, ensure to operate on an authorised platform that contains a KYC policy. A “Know Your Customer” policy is one of the most common and reliable processes undertaken by a platform for their consumers. It is essential for all the traders to complete this identity process, which imperatively helps to reduce the risk of withdrawing with a fake account posing as the account holder.
Avoid sharing your personal or financial information with a broker who claims to provide high returns if you work with them or in general.A legitimate broker would never ask for your sensitive information, no matter what, as it doesn’t have to be concerning in the process.
Acquire a unique ID and password for the platform. As scammers are eligible to hack into any device or account easily, changing the credentials would help you not get targeted by a fraudster.
Do not trade securities outside of the platform to which you have given your endorsement. If a counterparty lures or demands that you continue with the trading process outside the platform, refrain from acknowledging it. Once you start communicating outside of the trading platform you endorse and face inconveniences from counterparties, it will be difficult to recover.
Assume that if a broker or promoter provides you with low fees or a low price compared to the standard market value and also provides unbelievable offers, this can be fishy and suspicious. Con artists frequently post alluring ads to attract newcomers and less-experienced traders into their trading policies, where they try to steal the personal and financial information of the novice trader.
If you are a beginner to the trading industry, it is essential to associate with the verified merchants and promoters that can help you to provide strategies to upscale and even safeguard you from acquiring excessive loss due to volatility. You can identify an authorised merchant by inspecting their profile, which would contain a yellow badge that symbolises verification and legitimacy.
Conclusion :
Exercise due diligence on the forex broker or merchant you are considering by adhering to the Background Affiliation Status Information Centre (BASIC), which was created by the NFA (an industrywide, self-regulatory firm for the U.S. derivatives industry). Recently, scammers have mastered several new techniques in an S2 Trade scam by defrauding the systems of many authorised firms. Moreover, always keep up to date on new forex scams; fraudsters claiming to provide the temptation and allure of huge profits in the forex trader’s mind will always bring new and more sophisticated con artists to this market.
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