The online trading industry is witnessing an alarming rise of fake trading platform providers, opening concerns for both traders and investors. These platforms typically appear on websites of unregulated scam brokers, which they use to deceive customers and steal their money.

We recommend you read our article and learn more about the hoax platform phenomenon. Understanding what fake trading platforms are, how to identify them, and what to do in case you have fallen prey to one is crucial for all marketgoers.

What is a Trading Platform?

A trading platform is a software or web-based interface that allows traders to buy and sell financial assets like currencies, stocks, commodities, indices, and cryptocurrencies. It serves as traders’ gateway to the markets, providing them with access to real-time market data, charting tools, and order execution options.

Traders can open positions, set stop-loss points to exit the market if the prices change against them, buy and sell at predetermined future prices, and utilize leverage to boast their potential gains.

Furthermore, they have the option of setting up a trading bot with predetermined strategies and letting the program trade for them. With the proper programming and risk management techniques, human intervention is not necessary. 

Popular platforms such as MetaTrader 4, MetaTrader 5, and cTrader include a wide range of cutting-edge tools such as automated trading, live market reports, a customizable interface, fast order execution, sophisticated charting, multiple timeframes, etc.

How to Distinguish Between Real and Fake Trading Software?

First and foremost, check a relevant list of fake trading websites. In case your provider appears there, immediately cease all communication and withdraw your funds. Should you experience any difficulties, see the last section of the article on how to act in such circumstances.

If you have doubts about a certain platform, follow these steps to distinguish between legitimate and fraudulent ones:

• Check your provider’s regulation and license. Legitimate trading platforms are authorized by reputable financial authorities in their respective jurisdictions. A fake online trading platform is never regulated.
• Look for reviews, ratings, and any negative feedback from other traders regarding the company’s business. Beware of fake endorsements such as the Elon Musk trading platform scam.
• Fake trading platforms often provide false contact information. Therefore, be sure to verify the contact details and confirm their legitimacy.
• Check security because transparent firms use robust security measures to protect traders’ funds and personal information. Ensure you have two-factor authentication and encryption.

Fake Crypto Platform

To identify a fake crypto platform, look for unrealistic promises of high returns and easy profits with minimal risk. Fraudsters resort to cunning marketing tactics and fake testimonials to lure unsuspecting traders. 

A fake crypto trading website is usually full of misleading content and lacks relevant legal documentation and contact information. Be sure to check your company’s registration and license before depositing funds.

Fake Forex Platform

Similar to crypto fraud, duplicitous Forex trading platforms promote currency trading with high leverage and favorable spreads. Financial swindlers running these schemes tend to target individuals interested in profiting overnight. 

They typically guarantee unrealistic earnings through MetaTrader fake software by presenting fake trading history. Again, to make sure you are dealing with a legitimate company, check regulations and credentials.

Risks of Using a Fake Online Trading Platform

Using a fake trading platform is extremely risky. It can lead to devastating financial losses. You are deprived of security tools such as negative balance protection, fund segregation, leverage caps, and a compensation scheme contract.

Say you deposit funds on such a platform. You start trading and see some results. After a while, you may decide to pull your funds, which is when issues start cropping up. Unregulated brokers may manipulate prices, deny your withdrawals, or even refuse to return funds. It’s important to follow the steps we outlined in the next section.

What to Do If I Lose Money to a Fake Trading Website?

If an anonymous online swindler has gotten the better of you by duping you into using a fake platform, do not despair. There are a few things you must do as soon as possible in that case. Note that recovering your funds is achievable, but only if you take immediate action.

• Report the incident to the relevant financial market regulator, financial ombudsman, and local law enforcement. They may be able to investigate the case and take legal action against the scam broker. In some jurisdictions such as the UK, you’re entitled to compensation if proven that you have been defrauded.
• Consult with a qualified attorney and explore your legal options. You may be eligible to press charges against the fraudster and shut down his devious operation.
• Inform the community about the running scheme. Write a comment on high-traffic trading forums to warn fellow traders and investors about the lingering platform hoax.
• Contact a chargeback company. Professional assistance is necessary to recover your funds, so consult with experts on the matter.

To sum up, let’s outline our main points: fake online trading platforms pose a serious threat to online traders. Each day, new cyber traps appear, luring unsuspecting traders with promises of hefty gains in short periods with little to no risk. These dubious minds exploit popular financial assets such as Forex currency pairs and crypto tokens.

Stick to regulated providers with credible backgrounds and verifiable license certificates. We urge you to stay vigilant, do your research, check honest testimonials, and follow the tips we have mentioned in this article.

In case you need help to retrieve your hard-earned funds, please book a consultation with Scam Brokers Reviews. We boast a team of experts who handle such cases on a daily basis. Whether you need assistance with the chargeback procedure or crypto tracking using CipherTrace, we got you covered. Contact us today and get your money back!