How to spot a fake trading company according to Mohamad Sheikh Suliman ?
As an owner of one of the largest and most successful Online Trading Companies, Mohamad Sheikh Suliman explains that there is a certain lingo that circulated about fake trading companies. Those sentences come in the form of promises of consistent and high profits, and that the risk is very low and so on.
Let’s be honest: there is no such thing as a 100% guarantee, and if it did exist, why would a fellow trader share their tips and secrets and share a "slice of the pie".
These offers may seem very attractive, especially for beginners. If the offer sounds "too good to be true" then it's most likely to be a fraud.
ONLINE TRADING COMPANIES
« The world's progression day by day has a huge effect on every aspect of our life. Everything from tools, food, transportations, business, and more, witnesses a development in an attempt to make life more convenient and easier. Online Trading Companies are no different. It is an online establishment that facilitates and allows the clients to buy and sell certain goods, Forex, cryptocurrencies, stock, commodities and more through an electronic interface. »
ONLINE TRADING SCAMS
Just like there is good and bad with everything in life, there are legitimate online trading companies and there are fraudulent ones. There are several forms of scams a company may use in order to scam strip innocent people out of their money. In some instances, the scheme is so elaborate and efficient, it actually takes the name of the person who created it.
How Online Trading company lure their prey
Usually, scammers would target beginners or traders without any education or a solid base in trading. The best way to avoid getting scammed is to learn and gather as much information about everything that has to do trading and to have a clear idea about what you’re getting yourself into before deciding to go through the experience solo, or even through a broker.
Once you’re familiar with the aspects of trading, you’ll seize to be a target for scamming companies.
Fraudulent companies would usually lead to believing that profits are really high, fast and consistent and would use sentences such as “Make an incredible amount of money in a very short time” “Start making profits now” and other sentences to hook the potential client and convince them to deposit.
Ponzi scheme
One of the most popular Scams known to men in business is called Ponzi after Charles Ponzi. The Ponzi scheme is a form of fraud in which people are lured in to make an investment, which is then used to pay off earlier investors, thus keeping people in a continuous loop.
How to spot a fake trading company ?
There is a certain lingo that circulated about fake trading companies. Those sentences come in the form of promises of consistent and high profits, and that the risk is very low and so on.
Let’s be honest: there is no such thing as a 100% guarantee, and if it did exist, why would a fellow trader share their tips and secrets and share a "slice of the pie".
These offers may seem very attractive, especially for beginners. If the offer sounds "too good to be true" then it's most likely to be a fraud.
How to spot a fake trading company according to Mohamad Al Sheikh ?
As an owner of one of the largest and most successful Online Trading Companies, Mohamad Al Sheikh explains that there is a certain lingo that circulated about fake trading companies. Those sentences come in the form of promises of consistent and high profits, and that the risk is very low and so on.
Let’s be honest: there is no such thing as a 100% guarantee, and if it did exist, why would a fellow trader share their tips and secrets and share a "slice of the pie".
These offers may seem very attractive, especially for beginners. If the offer sounds "too good to be true" then it's most likely to be a fraud.
Licensed vs Fake companies
Mohamad Al Sheikh emphasizes the importance of ensuring the company, or broker, that is chosen to work with is licensed.
A licensed company means it is regulated and it is subject to regulations and has a set of rules they need to comply with.
Second, learning about the company's licenses and how they protect you as a client. An unlicensed company, since they're not regulated, traders and clients can't file any complaints with any market authority because the said company is fake.
As a Licensed trading company owner, Mohamad Al Sheikh explains that this license and any information about the license shouldn't be hard to find. As a case in point, Mohamad Al Sheikh's trading company has full disclosure of its Licenses as well as its Terms and Conditions at the bottom of on the main page and is very accessible to everyone.
Mohamad Al Sheikh's own company, one of few reputable and legitimate trading companies, is a company incorporated in the UK, and licensed and regulated by VFSC (Vanuatu Financial Services Commission).
ADVICE FROM THE BUSINESS PIONEER MOHAMAD SHEIKH SULIMAN
According to Mohamad Al Sheikh, there are three golden rules one must keep in mind, at all times, in order to stay safe and not get swooped up by a scamming company.
The first rule of thumb is to put safety above anything. Al Sheikh advises not to run after big beautiful fake promises of instant wealth. After all, not everything that shines is gold.
The second rule is to be wary of companies that use sentences such as "the secret to success" and everything that falls within the same meaning.
Last but certainly not least, Al Sheikh adds that it's absolutely crucial not to download any apps unless you're 100% positive that it won't damage your device or leak any personal info.
Mohamad Al Sheikh shares 5 signs that one should look out for :
1- You're being spammed with emails asking for personal information.
2- You can't find any background. If learning from someone who refuses to provide any information about their background. Whether that person is a broker, an account manager, a trader, or a coach, always do your research before you put your trust in them.
3- You're paying for trading courses and strategies without any proof of legitimacy. A lot of people claim to have a lot of experience and would offer to give you a course in exchange for a decent sum of money. More often than not, these people wouldn't be able to legitimate their practice. These kinds of people are referred to as "Snake Oil".
4- You're receiving fake success stories. Sometimes, scamming companies would publish articles with fake news about a trader who became an overnight billionaire using a certain tool.
5- The companies do not mention anything about their Licenses. Fake companies, as the name suggests, are not real and are not licensed therefore, this makes them untraceable, and the client is unable to find any piece of information about the said companies, and of course, they are not subject to any laws or regulations, and therefore, the client can't file any complaints when scammed.
Educate yourself and avoid getting SCAMMED
When trading in Cryptocurrencies and FOREX, Mohamad Al Sheikh clarifies that there is no escape from potential losses. Anyone who says otherwise, either doesn't know anything about trading or works for a scamming company.
Beginners would usually start trading with a very small deposit, which sometimes is not enough, and some of them become addicted to "gambling" with Forex instead of trading, and some of these people are victims of poor use of Leverage.
Al Sheikh adds that any trade without skills or experience is essentially playing against the whole market. This market basically has an infinite amount of capital. This makes it not just difficult, but almost impossible to beat.
Mohamad clarifies that, in all honesty, all the reports about online theft indicate that the loss of the capital was a result of the client's poor knowledge and skills, and not the company's faults. So, in order to avoid being preyed on, a trader needs to do proper research and acquire the necessary skill. Doing this will allow them to become better at trading faster, and will definitely help them avoid being scammed by Forex companies.
Mohamad Al Sheikh explains that acquiring the skill is crucial, not just to generate profits, but also to be aware of the possible risks that come with this activity.
Once one accepts the idea that there are always risks of loss, and starts trading with a strategy, understanding the market and its properties, it would be almost difficult to be victimized by scammers.