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What is Forex and how can Forex brokers scam their clients?

What is Forex Trading?

A detailed explanation of financial fraud operations through unlicensed Forex companies and why you should contact us, “the law firm affiliated with the Financial Supervision and International Financial Conduct Authorities"! Forex” is a financial market and another form of money speculation. Forex is short for - foreign exchange, also known as FX or the currency market.

It is the largest form of money exchange in the world, with about 4 trillion usd traded daily, and is open to major institutions and individual investors alike. The Forex market is a market where people can buy, sell and exchange currencies and speculate in global currencies and CFD's. Forex market participants include banks, trading companies, hedge funds, investment management companies, brokers and private investors.

Regarding how Forex works in international and global markets - foreign currency exchange does not have a central market. Instead, a foreign exchange market exists anywhere where two foreign currencies are traded. It is open 24 hours a day, five days a week.

This foreign exchange market exists to ease investment and trades. The most important major commercial centers are London, Paris, New York, Tokyo, Zurich, Frankfurt, Sydney and Singapore. All levels of traders, from central banks to speculators, trade currencies with each other.

According to some experts, without this mechanism in place, foreign trades and investments will be hampered. Since there are many currencies along with a few major players like the US Dollar, British Pound and Euro, this device provides a clearing house to exchange these major currencies.

But there are many concerns and questions on the mind of individuals who are embarking on Forex trading or even abstaining from dealing with it. To answer your questions, we first need to know whether Forex trading is legitimate or not? Or if it is really a scam or if it indicates the ability to make profits as a Forex trader.

How can a Forex broker scam the clients?
Originally, Forex trading, as a trade, is not a scam, but what links it to fraudulent operations are multiple tricks associated with Forex trading. The reason for the large number of fraudulent operations in the Forex market is due to the lack of regulation of this market, which is particularly difficult to regulate because it is the largest and most Liquidity in the world. They also trade 24 hours a day and do not have a central body governing the currency trading market. This makes the Forex market an easy target for scam artists. When the Forex market first became available to retail traders in 1999, the most commonly used scam brokers were those who would collect money from clients and then simply disappear. Most of these brokers were located in unregulated countries, which enabled them to avoid prosecution. As for whether this trade is legitimate or not, many have lost sight of it being an illegal trade as the Forex market can certainly be profitable. The Forex market trades approximately 4 trillion usd every day, and this market simply would not exist if no one was able to make profits from it. People often doubt its profitability because many traders are not successful in trading in the Forex market. This lack of success is often due to a lack of knowledge of the market and other factors needed for success, such as having a trading strategy.

In the end, Forex trading is surrounded by risks, and even with knowledge of the market, the trader bears all financial losses. Not everyone can trade through Forex, but if you have the right experience or you are receiving advice from someone who has a strong understanding of the market, it is certainly a market that will help improve your knowledge of the world and can definitely make big profits for you.

Because Forex trading is closely linked to fraud and scams, fraud is one of the biggest problems that everyone faces in the Forex industry. As with any new industry, there are a lot of people looking to take advantage of newcomers. They make things easy for them until they fall into the trap of fraud through Forex.

So why do people think forex is a scam?

Forex trading became available to retail traders in 1999. The first handful of years were caused by overnight brokers seemingly stopping activity without warning. The common denominator was that these brokers were unregulated countries. While some occurred in the United States, the majority appeared to occur overseas, where all it took to set up a brokerage was a few thousand dollars in fees.

Since 2007, brokers disappearing with customers money have been extremely rare. Over the past few years, Forex brokers have mainly been acquired by others, or closed shops were futures brokers whose clients were also able to trade Forex futures but not spot Forex

Scams are deliberate deceptions in order to obtain unsuspecting money from someone. There is a clear and significant difference between a poorly managed brokerage and a fraudulent brokerage. Even a poorly managed mediation can last a long time before something takes it out of the game.

Forex trading in the Kingdom of Saudi Arabia as an example of an Arab country:
Based on the decision of the Saudi government, Forex trading is basically illegal trade, unless it is done under an approved Saudi company, at which time you have full control over currency trading, otherwise you will be subject to legal accountability and lose your protection.

Fraud was the most important and largest reason that forced the Saudi government to ban and prevent Bitcoin and Forex trading, because of the risks fraught with them. Talking about fake contracts, illegal profits, unknown and unsafe trades, and often losing your money completely, is what forced a country like the Kingdom of Saudi Arabia to set strict rules, laws, and limits for Forex trading or dealing in electronic currencies such as Bitcoin, in order to protect the money of its citizens and preserve its national economy.

Therefore, the Saudi government has brought Forex trading and electronic cash transactions under the control of the Arab Monetary Agency, in order to avoid illegal marketing and platforms that claim to be authorized, when this is not the case This brokerage process will ease your trading, just make sure that it is a regulated company, this way it makes it legal and guarantees you that it is not a scam, because there are a lot of cases about fake brokers in the market and people losing money and time to it.

Do good research before choosing one and you will avoid legal problems. Forex trading should be safe and any investor will benefit from some restrictions to provide a safe environment where they can change currencies and continue working for their profits

Often the main and primary goal of everyone who trades in Forex is to make money and make a quick, inexpensive profit, but soon he collides with the painful reality and finds himself losing the majority of his money, if not all of it, due to many mistakes that Forex traders make. The mistake could be... Simple is expensive. As with any other type of business, Forex trading also requires some guidelines and principles that one must follow. Interestingly, Forex beginner's mistakes can be easily avoided if you can recognize them first.

The most common mistakes in Forex trading

Here are the most common mistakes in Forex trading

First: Lack of educational experience

The first and biggest mistake in Forex for beginners is not having a complete understanding of how the markets work. Forex beginners often think that just having a good trading strategy is enough. However, they always end up losing their money. This is the same as trying to create a business in a sector that you have no idea about. Looks familiar? Addressing this problem is quite straightforward in terms of solution, and there is not much to discuss. Study like there's no tomorrow, getting a good Forex education is extremely important! Beginners tend to read only a few good trading books and only a few articles before starting trading. They practice very little, forgetting that they are juggling a profession that takes years to master! In fact, novice traders tend to know so little about financial trading that they often don't know where to start. So how can traders avoid making the biggest and most common mistake in forex trading?

Second: Skipping the trading plan

You must have heard something about the positive effects of having a trading plan. The financial markets are no exception to this, and not having a Forex trading plan is one of the most common mistakes made by Forex traders. Perhaps, the reason for this is because traders do not have a clear understanding of what a trading plan looks like at all.

What is a trading plan?
A trading plan is a strict set of rules, half of which the trader relies on from his trading strategy, and the other half is derived from his money management strategy. It is as follows:

– Specific market conditions for entering the trade

– The amount of money to risk in a trade

– Specific market conditions to exit if you are wrong (stop loss)

– Specific market conditions to exit if you are right (take profit)

– Approximate time for the market to reach your target

- Write down and record everything

Third: Undermining money management

There are some things that a trader needs to ask himself, to avoid making those Forex trading mistakes -

Am I only investing my risk capital? (Can I afford to lose this money?)

What is the maximum percentage of my total investments that I am willing to risk on a single trade?

What is the maximum number of trades I can open at one time?

What profit/loss ratio does my strategy promise?

Does it match the risk/reward ratio for each trade?

Fourth: Setting the wrong goals

You have to do all things right, even if it means making less profit or doing it any other way, as long as it promises more returns? It's a difficult question, because what is healthier for both the trader and the account balance is to stop thinking about money altogether. If making money is a trader's only goal, especially in the early stages of their trading career, then chasing money may soon become the cause of failure.

Chasing money usually results in breaking the rules of your trading plan. In rare specific trades, breaking these rules may increase the return. However, in the long run, which hopefully is your financial trading plan, it almost always results in an empty account balance. This may occur in one of the following ways, or through a combination of them: overriding and over-analysis.

Finally, the best steps you can take to avoid making Forex mistakes are to study, research, plan, follow your trading plans, take notes on your progress, and do all of this while protecting your investments. Not following these simple techniques is the biggest mistake Forex traders can make. It goes without saying that you should practice as much as possible, before implementing your strategies.

Important information about fraud and fraud lawsuits in Saudi Arabia

Fraud and fraud lawsuit in Saudi Arabia

Fraud crimes in Saudi Arabia, especially financial frauds have become one of the most common problems that global financial institutions suffer from. These crimes caused economic damages to international and Arab institutions and companies which harmed the reputation of these institutions, their competitiveness and their economic reputation.

One of the sectors most affected by fraud and fraud crimes globally is the banking sector - It caused huge losses and depleted wealth and assets. According to recent statistics in Saudi Arabia, financial frauds amounted to 214 million Saudi riyals last year! This is compared to 520 million Saudi riyals for fraudulent activities in 2016,I t decreased by half in 2017 to 2,046 compared to 4,275 cases the year before.

Fraud in Saudi Arabia is also widespread at the individual level, which prompts those who are exposed to it to resort to the courts in order to obtain their stolen rights. In the following lines of our article, we will detail for you everything related to fraud through many points.

What is the definition of the crime of fraud?

The crime of fraud: a crime that represents an assault on property

Because the perpetrator aims to use fraudulent methods to seize the money of others,this causes the perpetrator to hand over his money to him under the influence of these fraudulent methods or by using a false name, or by impersonating an incorrect identity or by disposing of someone else’s money.

The crime of fraud is considered one of the most sophisticated crimes

Some of those criminals, work with sharp intelligence, and seek to create tricks and methods that suit the developments and precautions taken in order to pass their criminal acts under a cover that deceives others that their actions are legitimate. Currently, many of them use fake persuasion through social networks To seize people’s money, and the Saudi legislator addressed this in the Anti-Cybercrime Law.

It is known that the crime of fraud is based on moral effort, through which the perpetrator achieves the victim’s belief in him.

Likewise, in the crime of fraud, the victim hands over the money to the perpetrator through consent and choice, unlike the crime of theft, which involves seizing money without the consent of the victim.

What are the elements upon which the crime of fraud is based

The first: “Madhi” and its elements:

It must be proven that the fraudulent acts prompted the victim to commit acts harmful to his or her financial interests or the financial interests of others. Proving this relationship depends on the evidence, the diversity of the methods used, and the strength of their influence.

The second: “moral” is achieved by the presence of criminal intent, because the crime of fraud is intentional, it consists of two elements: 1- Will, 2- Knowledge.

With the emergence of modern and complex technology, fraud and financial crimes have turned into cybercrimes. It has turned to the virtual world, and recently electronic fraud crimes have been among the most prominent crimes on the Saudi scene. In addition to the purpose for which it was originally created, it's been used by fraudsters to carry out their shameful operations and help them hone their skills regarding committing electronic fraud crimes. For example, fake online shopping crimes have become extremely widespread, and a large number of people have fallen victim to these crimes.

What are the types of fraud crimes that can be filed for fraud in Saudi Arabia if they occur?

Commercial fraud

Business fraud is, quite simply, fraud in any business that resorts to deceptive practices to cause economic harm. Business fraud and customer fraud are closely linked. Consumer fraud may occur when, in the course of a commercial transaction, false statements of fact are made so that the person who makes false statements knows that the statements are false when they make them and the other party to the transaction relies on false data at their expense.

Electronic fraud

The most common type of online fraud is phishing. It is the process of collecting your personal information through emails or websites. They claim to be legitimate when in fact they are fake bomb sites. This information can include usernames, passwords, credit card numbers, social security numbers, etc'. Often, emails direct you to a website where you can update your personal information and because these sites often look “official,” they hope to trick you into revealing valuable information that you normally would not share and very often, it leads to identity theft and financial loss.

Spyware and viruses

Another type of fraud is done by viruses and spyware, and that is a malicious software that is downloaded onto your computer without your knowledge. The purpose of these programs is to capture or destroy information, destroy your computer's performance, or load you with advertisements. Viruses can spread by infecting computers and then replicating itself. Another dangerous type of online fraud that is often used to obtain personal information are windows or advertisements that suddenly appear above or below the window when you open some websites. Fraudulent websites or pop-ups are used to collect your personal information.

What is the penalty for fraud in Saudi Arabia according to Saudi law?

The Saudi regime did not deal with fraud and deception crimes independently of other crimes, rather, the matter is left to the judge’s authority to sentence the perpetrator in proportion to the extent of the fraud and its effects, without prejudice to the right of those affected to resort to the fraudster to obtain their rights in accordance with the law.

When you review some texts, you will find that the crime of “fraud” is criminalized in some legal texts in various chapters, which I mentioned, organized as a matter of criminal protection. Among them is what was stated in the first paragraph of Article Four of the Anti-Cybercrime Law, which stipulates the following:

He shall be punished with imprisonment for a period not exceeding three years and a fine not exceeding two million riyals, or one of these two penalties.

Every person who commits any of the following information crimes:

• Seizing for himself or for others a movable property or a document, or signing this document by fraud, or assuming a false name, or impersonating an incorrect character

• Although the legal scope of this text is limited in the field of information crimes, most recent forms of fraud use technology to achieve its evil goals of seizing the money of others through deception.

• If fraud crimes are coupled with money laundering crimes in the Kingdom of Saudi Arabia* the perpetrator shall be punished with imprisonment for a period not less than two years and not exceeding ten years or a fine not exceeding five million riyals or both penalties.

The organizer took into account the aggravating circumstances in increasing the penalty in seven cases identified by one of the legal articles including its commission by an organized criminal group, and the exploitation of a minor and the like.

• If the perpetrator of the acts is a director of a company or institution, or one of its representatives, or has a relationship with it, and his act was for the benefit of the company or institution, the company or institution shall be punished with a fine not exceeding ten million riyals. This is without prejudice to the penalty prescribed for the perpetrator, and a ruling may be issued depriving the company or institution from entering into purchase insurance contracts and implementing projects with the ministry or government departments for a period of five years.

• Article Three of the Penal Provisions stipulates crimes of fraud and breach of trust in financial transactions: Anyone who owns money, seizes it, destroys it, squanders it, wastes it, enables someone else to do so, or uses it to obtain for the benefit of himself or someone else, and this money was delivered to him as a trust, deposit, mortgage, agency, or any other trust contract, the penalty shall be imprisonment for a period not exceeding five years or a fine not exceeding one million riyals, or both.

• Penalties apply to attempting to commit any of the stipulated acts - Anyone who participates in incitement, agreement, or assistance in the commission shall also be punished, not exceeding the penalty prescribed for the original perpetrator.

You can file a fraud lawsuit in Saudi Arabia against the fraudster who deceived them, whether a company or an individual, by appointing a lawyer, a criminal specialist, or resort directly to the Public Prosecution to file a criminal complaint against the fraudsters.

SCAM BY FAKE LAWYERS

Warning against fake lawyers which claims to recover your money from fraudulent companies

What is a Forex lawyer? A person with an office or law firm, who claims to specialize in recovering money from fraudulent Forex companies. Although a lawyer is necessary in the legal procedures related to suing these companies, there are many scams that occur in the name of Forex lawyers.

For example: There are those who create websites and claim to be lawyers specializing in recovering the stolen money of victims of fraudulent Forex companies, but in reality it is a continuation of the cycle of fraud and money draining operations!

For this reason, the best place for anyone looking to recover their money is to contact the financial oversight and international financial conduct bodies in order to be guided, to clarify the method of work, and to authorize a specialized lawyer from the international financial oversight and financial conduct bodies to assist and guide him on the correct path to recover his money in the proper and legal manner.

Apply directly to financial oversight and conduct authorities

If the company is licensed, you can go directly to the website of the relevant regulatory body and file a complaint against the fraudulent company. Make sure to keep all documents and details relevant to dealing with the fraudulent company, as this information can help support your complaint and achieve justice in the event that the Forex trading company is involved in illegal activities.

Are there law firms authorized by the Saudi Supervision Authority to recover stolen money?

To answer the question about the presence of a law firm authorized by the Saudi Regulatory Authority to recover stolen money from Forex companies, we must first understand that Forex trading is not licensed in the Kingdom of Saudi Arabia. In fact, Saudi Arabia does not regulate Forex trading, but rather it is done by global regulatory bodies such as the Financial Services Authority in the United Kingdom.

Therefore, there aren't any law firms in Saudi Arabia authorized by the Saudi Supervision Authority to recover trader's money from Forex companies. Any other claim made by a law firm, is part of scam attempts, where people attempt to exploit the trust and false expectations of traders.

It is essential for Forex traders to be careful and deal with reliable and accredited lawyers, whose background and reputation can be well verified. They should also be aware of local and international laws related to trading with Forex companies and financial investments.

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What is Forex and how can Forex brokers scam their clients?

The most common mistakes in Forex trading

Important information about fraud and fraud lawsuits in Saudi Arabia

What is the penalty for fraud in Saudi Arabia according to Saudi law?

SCAM BY FAKE LAWYERS

This is the content of tab six.

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