PARTNER SUPPLIED CONTENT – The Covid-19 pandemic has seen a lot of South Africans entering online trading & investing for the first time. Some of these new traders don’t bother to read about the dangers of online trading before venturing into it. This has led to sharp increase in online trading & investing scams targeting South African consumers.
Many of these scammers find their victims on social media, where many scammers are masquerading as Finfluencers.
These fraudsters promise high returns & huge guaranteed profits from forex trading by trading on their behalf, or by asking general public to invest money in their managed forex account for guaranteed returns.
These fraudsters usually go for soft targets like the inexperienced investors who want to invest their money in the markets but don’t know how to.
Here are some points that you should follow to help you not be just another statistic.
Tip One – Check if the Broker is Licensed in South Africa
Any broker and Financial Service Provider (FSP) operating in South Africa must be licensed by The Financial Sector Conduct Authority (FSCA). It doesn’t matter if you’re dealing with a forex broker or a stock broker. They are all brokers.
One major difference between them is their client base.
A stockbroker’s client base mostly consists of Investors & traders who trade in the stock markets while a Forex Brokers client base mainly consists of Traders trading CFDs.
If you deposit your hard-earned money with…
