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 who abide by the forex market seek to join the industry and obtain few greenbacks. Unfortunately, there are many scammers posing as Forex brokers that act to help you but in reality need to acquire your sensitive information for deceptive purposes.
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 scheme. S2 Trade is basically a forex broker and promoter that was founded and managed by industry professionals. Their main aim is to influence novice or experienced traders through their dedication and skills, to be dependable and communicate effectively, and to take complete responsibility for their actions.
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, that can be reason to doubt him.
- Aggressive sales technique – Market broker or advisor pitches an idea and demands you act on it right away because it is a once-in-a-lifetime opportunity, it can be a major red flag. A reputable promoter or broker will let you take time to research and make decisions accordingly.
- Complication in documents – If you come across a sloppy offering of documents that contains typographical, grammatical, or other errors, it can be a red flag or the investment could be a S2 Trade scam.
Because an authorised private offering will provide you with everything on paper legitimately.
- Unlicensed promoters – If a broker approaches you to guide you about the Forex market, check if the person offering the investment techniques has proper licensure under state security organisations such as SEC or FINRA. 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 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.
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.
- 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 to 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.
- 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 deceptive policies.
Exercise due diligence on the forex merchant you are considering by adhering to the Background Affiliation Status Information Centre (BASIC), created by NFA. Recently, scammers have mastered 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 of huge profits in the forex trader’s mind will always bring new and more sophisticated con artists to this market.