Common Methods Used In Forex And CFD Misconduct: What Investors Should Watch For

Online Forex and CFD trading can expose investors to substantial financial risk. Losses, however, do not necessarily indicate misconduct. Markets are volatile, leveraged products are inherently risky, and unsuccessful trading decisions can result in significant losses even where a broker has acted lawfully.

In some cases, however, the circumstances surrounding the investment may reveal a different picture. The relevant issue is not simply whether an investor lost money, but how the investor was induced to deposit funds, open positions, increase exposure and continue trading.

Certain patterns repeatedly arise in disputes involving Forex and CFD platforms.

1. Establishing Trust Before Requesting Larger Deposits