The sky-high returns from foreign exchanges have lured thousands of investors in Vietnam, making Forex scam more prominent than ever.
So how did investors get lured by these scams and where to find the real opportunities for traders? Let’s find out all the answers in this article!
How thousands of investors got duped by illegal forex trading platforms
The forex moves, along with the cryptocurrency trend, and a myriad of distorted forms of multi-level marketing (MLM) have been catching a huge attention from Vietnamese in recent years. They promise to bring 30%, even 200% profit with allegedly world-class technology and business models. What’s more, the investors are also told that they can get the commissions, which sometimes is even more lucrative than the interest.
Investor Nguyen Thanh Hai, like many others, heard about Emas Fintech from a friend, had opened an account from Emas Fintech with the expectation of 2-4% per day, or 30% per month.
The firm advertised that they were using the pairing-based matrix algorithm, which guaranteed almost no loss. In addition, Hai was also introduced to multiple packages, from basic to premium. Basically, the more the investor invests in the first place, the more profit and commission they will reap later. This program enticed many investors to pour money into Emas Fintech.
However, all of those promising profits are actually an act of fabrication. Experts pointed out that it is impossible that a company or individual can guarantee high profits when all the transactions happen on the internet with payment made voluntarily.
Senior economist Nguyen Tri Hieu also commented that investors should be cautious because headly anyone can earn 2-4% in returns without doing anything. And if these firms are so successful in their business, they could have raised big money from high-profile investors without having to target small investors to join their programs.
Besides, the Vietnamese laws don’t allow any forex trading, and if the investors lose money due to fraud, it’s almost impossible to get the money back or go to court.
What is the opportunity for Vietnamese traders?
1. Keep in mind the warning signs
Here are some warning signs of forex trading scam in Vietnam:
- Claims of extremely high profits. Investors should be extremely cautious for the alluring profits.
- Social media marketing with big winnings from trading and a luxury lifestyle
- Text message as the main channel for trading signals. The scammers use this to make you feel the convenience of trading and get your money more easily.
- No allowance to withdraw money under several circumstances especially when there is a huge change in the market.
2. How to trade safely
Here are some tips from the expert to help traders become successful in the long run.
- Risk only what you can afford to lose. Make sure you set aside an expendable amount of money for only trading. Separate the trading money to your kid’s tuition or mortgage and don’t ever allow yourself to borrow the money from these accounts for trading.
- Be a life-long student of the markets. Trading isn’t luck or talent, it is a skill. The only way to hone your skill and become better at trading is to always observe the markets, learn your lesson, and be disciplined. Knowledge such as RSI, MACD indicators, etc can tremendously help traders understand the markets and make better decisions.
- Trading like a business. To become successful at trading, you have to take it seriously like a job, not simply a hobby. For this approach, you’ll see that trading can incur expenses, stress, losses, etc – many nerve-wracking moments.
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Source: Vietnam Insider