A Forex trading pyramid scheme is a scam whereby the investor is recruited to sell a product to others. These products are of no real value. The actual purpose of these products is to promote the scheme and to get new people to join. The real profit is made by recruiting other people. Unfortunately, some forex traders have fallen victim to these schemes. Here are a few things to watch out for. This article will give you the inside scoop.
One of the first things to do is to be aware of the common warning signs that these scams operate. The easiest way to spot a scam is to check the reputation of the company and the founder. If you see any of these characteristics, it is likely that the forex trading pyramid scheme is a scam. The organization is not regulated and does not pay its members. However, some people are tempted to invest their money in the scam, which is why these schemes have become so popular.
A Forex trading pyramid scheme promises high returns for small initial investments. Nevertheless, in forex trading, the initial returns are based on the money paid by other members of the scheme. The early investors typically get a return on their initial investment and become motivated by their success. When the number of investors decreases, the scammers shut down the scheme. If you want to make a decent profit, don’t invest your money in a Forex trading pyramid scheme.
Forex trading pyramid schemes also promise huge profits without a lot of risk. There is always a risk, but forex is a business that involves substantial risks. It is also important to understand the risks of the forex market. No one can guarantee 100% profits. The only way to make money in the forex market is to invest money in a legitimate company that offers a genuine guarantee. And, don’t be lured by the big claims.
Another forex trading pyramid scheme is the 770 Capital scam. The 770 Capital broker promised to pay its affiliates 15% of the top-up amount they brought to the company. It lasted as long as the partnership deductions continued. But the pyramid collapsed, and the client lost their money. The scammers often refused to let them withdraw their money. So, it’s important to avoid forex trading pyramid schemes. The best way to protect yourself is to be cautious.
770 Capital is a forex trading pyramid scheme. The 770 Capital broker was a fake. The company’s owner was a wealthy businessman, but he was not a successful trader. The company’s profits were minimal. Despite these inflated numbers, the traders were unable to withdraw their money, and the brokers did not accept the withdrawals. Even worse, the 770 Capital company was founded on fraudulent activities.
The Global Trading scheme was a scam. The scammers claimed that they would sell cryptocurrency exchanges for higher prices. They took their investors’ money and disappeared. The company ceased operations in December 2014. Moreover, the scammers never let their clients withdraw their profits. They claimed that they would only allow the traders to continue to make profit. So, the forex trading pyramid scheme is a fake. In fact, it is a fraud.
A share scam is another common forex scam. It involves selling shares in a company that promises to make large profits when it goes public. The investors need to stay for a certain period of time to receive a commission from the recruiter. They will then leave the company, which is hurts the network marketer’s income. This is also a common practice for social media forums on forex. You can be sure that the people in the Forex group are trying to keep new members.
Another scam that uses a Forex trading pyramid scheme is managed accounts. These are companies that take your money and then do nothing with it. Typically, they invest it with the gurus themselves, not in the forex market. The gurus’ profits are only used to buy luxury items. In these cases, you are unlikely to ever get your money back. And if you do, there is no way to get your money back.