It is not a new thing that South African brokers are cheating their clients out of Billions of Rand. In recent months this trend has had a sharp increase. Social media has a big role to play in this regard has they are using influencers as driving force to get new unsuspecting clients to join the Forex industry. It should be noted that influencer play a big role in South African consumerism, so this is why their technique is so effective. Many South Africans buy into this life style values that are portrayed in their videos and advertisements and join the industry. Many of them lose thousand of Rand and continue to lose even more money. This not because they are bad traders but because brokers are manipulating the markets.
In South Africa there are little laws preventing brokers from taking advantage of clients, especially retail traders. Retail traders are the most at risk because they do not have much experience in the markets, especially in South Africa. Many retail traders see the influencers and their lifestyle and believe it is from Forex and start trading not knowing the dangers of trading or the scams. The biggest scams in the Forex industry is how brokers manipulate the markets to dupe traders into losing traders or just closing their positions. Brokers will send incorrect candlestick data to their clients forcing them to make mistakes while trading and then eventually allowing them to lose the trade. Brokers will also close positions or have long execution times. They will also provide fake signals or market tools that will make clients lose trades on purpose. They will always be o the other side of any of their clients trades. The amount of illegal activities that these brokers practice is outrageous, but there is no one stopping them. In South Africa there is not much defense against these broker scams for retail traders.
Forex trading is still very new in South Africa, this means there are no laws available to prevent such crimes from occurring. Many innocent people are losing thousands and these brokers are making millions of Rand a month. This will certainly turn into a pandemic in the near future. Traders should be aware of this and always check licensing and third party regulation from their brokers.
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