Scam Futures Brokers are unscrupulous companies that solicit investors for investment in commodities and futures. These scammers often pose as the Federal agency overseeing U.S. commodity markets and direct customers to wire funds to fictitious exchanges. Oftentimes, victims are led to believe they have opened an online trading account with a real exchange. However, this is not always the case. The following are some ways to spot a scam.
Typical scam methods involve a member of a discussion group recommending the services of a particular broker. This is done because the scammer is attempting to increase the profits of other victims through affiliate plans. Typically, such a post will contain a link to a messaging app. Once the victim has been lured into an affiliate plan, the scam broker won’t share the difference with the trader.
The scammers typically claim that their website is regulated and contains information on their legal obligations and trading risks. This may be true, but it’s important to be aware of the risks associated with trading cryptocurrencies. Scam futures brokers may also ask for your payment information in the legal section of their webpage. Then, they may suggest that you pay your deposit directly into their wallet. This is another red flag. Scam brokers are often able to conceal this information, so avoiding them is essential.