Is Funds Recovery Possible for Online Traders?
So, you are interested in a career in trading. You think the idea of trading from your home is great and you believe that you have enough skills to make money in trading. However, you will have to sign up with an online broker before you can invest your money in any assets or financial markets. The phase where you have to sign up with the broker is the most challenging part for any trader. When you sign up with the broker, you have to deposit funds in your account, and you don’t want to do that unless you are 100% sure about the authenticity of the broker.
Also read: How to get money back from a forex scam
If someone could guarantee you your funds recovery even when the broker is not willing to give your money back, you wouldn’t have any problem signing up with the broker. So, can you recover the funds you have lost in the hands of an online broker? There are some methods that you can choose based on how you have lost the funds. So, let’s look into them one by one.
Funds Recovery – When a Legitimate Broker Mishandles Things
So, the first scenario is when you lose the money in the hands of a legitimate online broker. You see, everything is being done digitally when you trade online. Some errors may come and some mistakes will be made. Just because you are with a legitimate broker does not mean you will never encounter any problems with your account or trading activities.
Sometimes, things can go awry even when you are signed up with the best broker in the world. So, if you are with a legitimate broker, but your funds are not showing in your account or the broker is not allowing you to withdraw funds, you can solve the matter with the help of the broker.
You can just call the broker and inform them about the situation. Sometimes, they might require additional information from you to verify your identity before they release your funds. In other cases, they might have noticed some suspicious activity on your account. You can call them, clarify things, and have the matter resolved.
Funds Recovery – When It Is Your Bank’s Fault
In some cases, your online broker is completely innocent. When you are a new trader, small things can make you go in the panic mode. You deposit money in your account and you don’t see it for a day. That sends you in the panic mode and you want to find things out as soon as possible. You start thinking that the broker you have signed up with is a scam, but that’s not always the case. First of all, you have to keep in mind the method that you have used for depositing funds in your account. If you have gone with the bank wire transfer option, you will have to wait for your money to appear in your account for some days at times.
If you have used your credit card but the money has not appeared in your account, you need to call your bank immediately. In most cases, you will find out that your transaction was not processed in the first place. It is not the fault of your broker. You can hold your broker accountable only when you see the money in your account but you can’t get your hands on it.
Funds Recovery – When It Is a Fake or Fraud Broker
This is the most dangerous and unfortunate scenario. When you find out that you have sent money to a fake broker, you can be sure that you won’t get this money back with your personal efforts or by any means that have been stated above.
You can’t get help from your bank or any parties that are involved in the transfer of money. The broker is not going to help you and you know why. However, you have some companies that can help you with great strength in these situations. They can show you that even the biggest scammers return the money when they are approached by the right people.
So, when you find out that you have lost money in the hands of a fake online broker or scammer, you should get in touch with Money-Back as soon as possible. You can rely on a company that has been designed to help you with this particular scenario. Online scammers think they can’t be caught. They are not scared of you or even the police in your country. The only entity that can make them sweat is Money-Back because it knows where they are and how to get to them.
Consider This before You Deposit Money with an Online Broker
There certain things you have to keep in mind before you deposit money with an online broker. You are highly recommended to see if the broker is regulated. If the broker is not regulated, you should not send the money into your account. In addition to that, you should see if you are being offered safe methods of deposit. Moreover, you should find some information about segregated funds on the website of the broker. If the broker is keeping your money in segregated accounts, you can be sure that it is following the latest standards and protocols of the online financial industry.
Lastly, you have to make sure that the broker you are signing up with is protecting your information through encryption. When you send money, you have to provide the details of your credit card or bank. So, you want your broker to encrypt your information as soon as you enter it on the website.
It has been seen that most traders who have been scammed think that they can’t get their money back. They lose hope and start searching for another broker so they can start anew. However, you should not do that. You should not prepare yourself to fall for another scam. Instead, you should make the first scammer pay for its illegitimate activities by getting in touch with a company like Money-Back and reporting the broker and its mishandling of your money.