FOREX DEALERS AND SCAMMER

Forex is an interbank foreign exchange market where currencies of different countries are traded. Interbank means that in any case the final entities through which currency trading takes place are banks. Market participants also include large multinational corporations, hedge funds, individuals, etc. However, all of them ultimately send orders to the bank, and only the bank can make a currency transaction. That is, the ultimate entities through which currency is bought and sold are banks licensed to conduct foreign exchange transactions. Banks can buy and sell currency in two ways: through the exchange and off-exchange. Through the exchange is currency trading, for example, on the Exchange currency exchange, which has.

Individuals do not have legal access to the currency market and there is no such access mechanism. The currency itself is not traded, only information about the currency, its price and markings are traded. This is the market where MetaTrader terminals are used.39 Article 4.1 of the Law on Currency Transactions is specifically dedicated to this market and states that currency traders have no right to trade, and all transactions must be carried out "through a personal account opened in their name". In other words, the trade of currency traders is that they bet on the rise or fall of the price of a currency pair and compensate their clients' accounts with the difference received, without bringing their transactions to the currency market, as there is no mechanism or legal basis for this. The word "broker" means intermediary and is used in Forex trading; since Forex is an over-the-counter market, brokers cannot exist in the Forex market. The combination of the words "forex broker" is also improperly used by forex organizations to engage customers in gambling activities

Forex can be divided into bank forex and dealer forex. To bank forex we can refer the market of the 1st level, i.e. the currency market itself together with the market of arbitrage conversion operations; to dealer forex the market of the 2nd level. In turn, dealer forex can be divided into licensed segment and offshore segment. Offshore forex dealers are divided into two types: moderate fraudsters and aggressive fraudsters. They are united by the presence of leverage from 1/100 to 1/2000 and direct deception of clients, the possibility of which arises due to the fact that these firms are registered offshore. Offshore zones have minimal government regulation of business, and companies registered there may not disclose accounting statements and other data. Aggressive scammers call customers with cold sales scripts, coerce them to sell property, take out loans and transfer money into their accounts. Moderate scammers attract customers through online advertising. Both of them manage to zero out the trading account of their clients within a few minutes or hours, thanks to a large leverage, because of which a small fluctuation in the market leads to a stop-out, when the dealing center or broker forcibly close the trader's trading positions at the current market amounts.

Every year forex scammers steal about a million people. On average 10 thousand dollars lost per person. For the last 20 years the total amount is already more than 1.5 million dollars. Almost every month a new forex "company" appears on the Internet. For example, recently in the U.S. three forex fraudsters stole $30 million from investors under the pretext of trading on the foreign exchange market. A federal court in the Southern District of Florida has already handed down an indictment. They developed a scheme in which they offered victims to invest in Global Forex Management. The defendants promised the victims that their funds would be invested through an Echadi company called IB Capital and showed fabricated trading results. But in reality, they just took all the money for themselves. Also recently, for example, Indian police said they arrested two people in connection with a massive forex fraud in which criminals collected about $1.7 million from 70,000 victims. The scammers offered investors to invest in a high-yield trading scheme in the forex market, promising huge profits in a short period of time. However, instead of trading, they transferred the money to their bank accounts.

For example, recently in the U.S. three forex fraudsters stole $30 million from investors under the pretext of trading on the foreign exchange market. A federal court in the Southern District of Florida has already handed down an indictment. They developed a scheme in which they offered victims to invest in Global Forex Management. The defendants promised the victims that their funds would be invested through an Echadi company called IB Capital and showed fabricated trading results. But in reality, they just took all the money for themselves. Also recently, for example, Indian police said they arrested two people in connection with a massive forex fraud in which criminals collected about $1.7 million from 70,000 victims. The scammers offered investors to invest in a high-yield trading scheme in the forex market, promising huge profits in a short period of time. However, instead of trading, they transferred the money to their bank accounts.