Forex Recovery Companies

Millions of consumer dollars are lost each year to fraudulent investments, with little or no hope of money recovery. One common investment is the foreign exchange (forex) market. The forex market is a legitimate investment vehicle, which is why many new investors are willing to trust it, and a broker who offers to sell it to them.

Unfortunately, forex investments are one of the most widely-used scams by phony or dishonest brokers to steal investor’s money. However, some companies specialize in assets recovery for this and other fraudulent investment schemes.

Why Is Fund Recovery So Relevant Now?

An uncertain economic climate provides a ripe environment for fraud crimes. Investment fraud thrives in conditions where people are having trouble making ends meet and are looking for alternate ways to make a buck. Desperate people are often the easiest targets.

Statistics show that globally, online fraud increased by 40% in 2020, resulting in losses of approximately 40 billion dollars. Money recovery in the forex trading market is not easy, and the process is more difficult when the broker is unregulated.

How Foreign Exchange (Forex, FX) investment works

Worldwide, close to 5 trillion US dollars are traded each day in the forex market. Different currencies are bought and sold and this is what facilitates the exchange of goods and services around the globe.

Most of us have purchased foreign currency at one time or another to go on vacations or business trips to other countries, and know that exchange rates change daily. This is the basis for currency trading, buying a particular currency at a lower exchange rate and selling it at a higher one.

To make a forex trade, a seller (broker) accepts a buyer’s (investor’s) money and promises to pay the buyer the difference between the current cost of a particular currency and its value at a future specified date. If the currency is worth more on that date, the seller makes a profit, and vice versa. If the currency is worth less by that date, the buyer makes a profit.

The most commonly traded currencies are the US dollar (USD), Euros (EUR), British pound (GBP), Japanese yen (JPY), and Swiss francs (CHF). Forex investment brokers offer currency trades in pairs, the most common being US dollars with British pounds, and US dollars with Euros.

The forex market never closes, making investments possible 24/7. The cost to enter a forex investment is low. Investors can start with even a one-dollar investment.

Because there is no centralized entity like the New York stock exchange (NYSE) or the National Association of Securities Dealer Automated Quotation system (NASDAQ) to process foreign exchanges, almost anyone can portray themselves as a forex broker. With so many unregulated brokers around, there is very little chance for funds recovery when an investment loses money.

How Do People Go About Obtaining Funds Recovery?

If you’re the victim of a forex investment scam, it is important to begin a funds recovery process as soon as possible. Filing a report of the crime is the first step.

The Funds Recovery Process

  • Gather evidence. Collect receipts, phone numbers, and emails so that you have all the information you need to file a report.
  • Report the crime to the authorities. You can start by filing a police complaint with your local police department. You can also file a report with federal law enforcement, a District Attorney, or Attorney General. Government agencies keep track of scams to help prevent others from falling victim to them. They can take legal action, but do not help with money recovery.
  • Report the fraud to your local Consumer Protection Unit. The Consumer Protection offices take financial fraud very seriously and they must be involved in the investigation.
  • Make a regulator complaint. There are financial regulators in each country responsible for commodity traders such as forex dealers, stockbrokers, bitcoin traders, and others. If they have regulated a phony broker, they are highly motivated to investigate.
  • Engage a reputable and successful recovery company to help you do all the above. Look for one that offers free consultations and upfront quotes.

Cautionary Tales

Be aware that some untrustworthy assets recovery companies exist. It’s bad enough being scammed by a forex or other fraudulent investment scheme, and even worse to be taken a second time.

Scammers often sell their list of victims to other scammers like fake asset recovery companies, so be on the lookout for this. You can usually tell a phony assets recovery company when they ask for an upfront fee to act on your behalf to recover the money.

Unlike forex brokers, fund recovery companies are regulated. Be sure to do your homework to find a legitimate recovery company with a proven track record of success. Talk to some of their previous clients if possible.