CFD, short for “contract for differences” is a procedure made in financial trading whatever the changes in the clearance between the open and closing trade prices are settled on a cash basis.
What CFD actually is?
There is no transaction of securities or physical goods with CFDs. CFD is a forward-thinking trading strategy that is used by experienced and skilled traders only. Legally it is not allowed in the USA.
It allows investors/traders to trade in the price variations of derivatives and stocks. The financial investment that is derivatives is derived from underlying assets. In CFD the investor “bets” on the assets or securities that fall or rise.
With huge money flowing in CFD and Forex market attracts unregulated brokers with a lure of earning big amounts in a short time.
CFD is for experienced players. For a newbie, it is impossible to win in a long term. Vast numbers of unregulated brokers are also involved who manipulate prices so that new investor loses money fast and demand infusion of new funds.
Fraudsters see this as an opportunity to scam people with CFD offers. They imitate to be real and reliable brokers. As soon as you make your initial deposit the scammers will stop communicating with you anymore. Be sure to deal with a legitimate and authorized broker and not a scammer.
Is it possible to earn money with CFD trading?
If you are an accomplished and experienced trader you can make money. Since it is a gambling sort of thing luck plays an important part also. There is a risk/danger involved at each step and it is more risker for beginners.
No doubt with fair luck people does make huge amounts of money. More the people who hear about successful traders also jump to try their luck. People without experience also bet their money on CFD trading. This is where the trouble begins.
Those who are inexperienced and have very little knowledge of how the market works end up losing all of their money. It is better not to be one who loses all his investments.
Why do investors become victims of CFD brokers?
The only and main reason is lack of knowledge of the market and their little or no experience.
Like any other gambling game, few might have got lucky the first time. But as a gambler does not always win so does a CFD investor. If an investor loses funds the second time, to regain his lost fund he tries and tries again and loses all his funds at one point in time.
One of the biggest reasons why people are falling prey to the CFD scam is due to a sharp increase in unregulated brokering platforms. Unregulated platforms cheat gullible and innocent investors and disappear.
How to avoid CFD fraud?
Avoid unregulated and illegal CFD brokers. Trade only on regulated platforms. Read reviews at our site before investing. Study the market and gain experience. Invest the least amount that you can afford to lose. Most importantly, do not permit the “agent” or “broker” or anybody to trade on your account.
Do your research before investing. Research broking house history and who is controlling the company.Research what you expect from trading. The more research you do, the less is the chance that you will be scammed.
Have you been scammed by a CFD broker?
If you have already been scammed your first thought naturally is how to recover your scammed funds? Many people do not know that if they are scammed they can get assistance. Many people do not inform others fearing they will be laughed upon.
Is it probable to get the true assistance that will reimburse your money back?
With increasing and advancing technology CFD fraudsters are traceably provided you get the right and experienced assistance. It requires technical knowledge and experts in the field.
This is where Report Scam Community comes into the picture. We can provide you right assistance. We have a team that deals in these types of cases. Your complex transaction disputes will be handled by our team. Do fill out our free consultation form and we will build a strong chargeback case for you.