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    You may have heard CFDs mentioned along with forex and other forms of quick trading as a way to make large amounts of money. This trading vehicle has a fast turnover and is therefore appealing to people who need cash quickly and don’t want to tie up their funds in long-term investments for years on end.

    It is not surprising, however, that some take advantage of this desire to make fast money and that CFD scams abound. Any investments that track subtle fluctuations in the market may potentially reap high rewards but also involve high risk.

    Unscrupulous parties may set themselves up as brokers to perpetrate CFD scams. This article provides information and tips on how to avoid these schemes and what to do if you have lost money in a CFD scam.

    If your broker won’t release your funds, It is important to do something today!

    Scammers work quickly and can take your money in a matter of days. WebScams works with people who have tried to work with legal authorities and regulators who are slow to respond. Our professionals will make the process faster. Consult with us now before it is too late!

    What Are CFDs?

    CFD is an abbreviation for Contract of Differences. It is a quick contract between the seller and the buyer in which the buyer agrees to purchase the difference between the price of the contract at the time of the agreement and the value at the contract time. This difference, of course, can change rapidly in the course of a day or a few days and CFD appeals to those who like quick trades.

    People who trade CFD are gaming the differences between the value of the same asset without having to actually hold the physical asset. Many people feel this is easier and more convenient than keeping track of stocks. In some cases, CFDs are cheaper to buy than actual stocks, but they lack certain advantages of stocks, such as dividends.

    CFDs also have many advantages, which explains their popularity. They are good vehicles for a quick trade and if a trader has a good relationship with a broker they can depend on, the deal can be mutually beneficial. The contracts are managed and honored by the broker, which is the way things should work.

    However, the amount of control brokers have in this kind of trading can explain why there are so many CFD scams. The quick movement of the trading and the control the broker has in the process can make this type of trading vulnerable to abuses if brokers are unscrupulous.

    Is CFD Trading

    If there are so many CFD scams out there, one may ask if this kind of trading is inherently dodgy. Is CFD trading legal?

    People may be under the false impression that CFD is not legal because it is restricted in certain areas of the world, including the United States. However, there is a robus, legitimate CFD trade in Europe and some parts of Asia. The answer to this question is, CFD trading is legal in places where the law allows it.

    The answer may sound obvious but it can be more complex than it looks at first glance. A broker may be licensed for CFD trading but that license has to be valid in the area where the client is located. It is important to ensure that the broker’s license is not only real, but covers the area you are in as well.

    How to Find an Honest CFD Broker

    How to Find an Honest CFD Broker

    You can find an honest CFD Broker on the websites of regulators. It is a good idea to familiarize yourself with regulatory agencies in Europe and other areas that license CFD brokers. By searching on their websites, visitors can find legitimate, accredited CFD brokers.

    Looking for proper licensing is the first priority. Anyone who is investing large sums of money or hopes to make thousands if not millions in investing should take the time to investigate their broker, since he or she will be a vital partner in this process. Don’t be satisfied with a statement on a website saying that the broker is licensed or even a piece of paper that seems legitimate.

    There are many cases of regulators catching fake brokers with forged licenses. Do some extra digging and find out more information. Keep in mind that testimonials and reviews can sometimes be made up. A professional looking website, guarantees and documents stating terms and conditions may look good, but they aren’t enough to prove a broker is legitimate.

    It is a good practice to have an agency such as Fund Recall check out a broker. Professionals at fund recall can spot CFD scams that may be more subtle and hard to notice. Experts have the training and experience to detect a fraudulent CFD broker quickly.

    What Are Signs of CFD Scams?

    Unfortunately, most of the signs of CFD scams are not readily apparent until they are already happening. In some cases, people may start to make money with a CFD broker, only to find that they can’t withdraw their funds and that unauthorized transactions are happening on their behalf. Here are some common tactics used in CFD scams:

    • Broker puts pressure to make an unwanted investment
    • Broker refuses to release funds unless the client makes more trades
    • Unexplained fees
    • Lack of communication
    • Refusal to execute trades and unauthorized trades
    • Misleading or false information

    If any of these has happened, you may already have fallen victim to a CFD scam.

    What to Do if You Have Lost Money in a CFD Scam

    The most important thing to do if you have lost money in a CFD scam is not to give up hope. Experts at WebScams can investigate the fraudulent brokers and do a full investigation to locate your funds. Doing it alone can take time, lead to frustration and may make it less likely you will get your money back.

    Contact WebScams experts as soon as you recognize fraudulent behavior. Our experts have vast experience dealing with CFD scams and other financial fraud schemes. We are well-versed in the process of dealing with brokers, regulatory agencies and legal authorities. Our advanced tools can locate data to track the fraudsters and help you retrieve your funds.

    Get a free consultation today with WebScams experts and get your money back from a CFD scam!