NORTH PORT, Fla., Aug. 29, 2013 /PRNewswire/ -- When an individual from a developing country, seeking safety of funds, deposited his family savings into a forex broker account, he had no idea that the broker would refuse to honor his withdrawal, which would eventually lead to the death of his mother due to lack of much needed funds for her medicine.
"I personally started trading forex in 2004, and the dishonesty in the industry absolutely shocked me. I would buy forex education, backed by a money back guarantee, and I would get something completely different than was described in the sales letter. So I would request a refund, and nobody would reply to my request. Or I would sign up to a service, which listed positive trading performance for many years, and I would subscribe and start receiving trading signals with very specific entries and exits, only to discover that a losing trade is fraudulently being reported in the public performance as a winning trade. I would follow every signal, and at the end of the month would have a loss, while the public performance for that month would be reported as positive," says Dmitri Chavkerov, CEO of world's largest and most reputable forex reviews website ForexPeaceArmy.com.
"I was especially shocked when I saw that the dishonest approach to business was also common among forex brokers, and unlike the US stock market, which is protected by SEC, forex did not have and still does not have any government agencies to protect it," he says.
Chavkerov wanted to help others avoid companies that scammed him, so he started a website, reporting his experiences. This small website eventually grew into ForexPeaceArmy.com, one of the most visited forex websites in the world for learning forex trading and avoiding scams.
"Despite quite a few occasions of fraud that I was personally subject to in forex, nothing prepared me for a case where a trader's mother died, due to lack of funds, which in turn was due to a forex broker stealing the money from the trader," says Dmitri Chavkerov.
"That is, without a doubt, the absolute worst disregard for humanity I've seen since I first joined the Forex Peace Army and started dealing with scammers on a daily basis. I warned the owner of that brokerage that he was directly causing the death of a trader's mother in multiple emails. I asked him to pay. I begged him to pay. I demanded that he pay. Nothing worked," says Bill King, the Forex Peace Army employee who was investigating this issue.
According to Forex Peace Army's founder Dmitri Chavkerov, over the last few years Forex Peace Army has received not just dozens, not even hundreds, but thousands of complaints against fraudulent operations in forex.
"Forex Peace Army has a Scam Alerts Folder in its forums, which is one of the most popular folders on our website. The first thread in that folder dates back to January 13th, 2008. Between now and January 13th, 2008, there were 2,247 unique new threads started there about scam artists in forex. Some of these 2,247 threads have between 50 and 100 replies to them," says Chavkerov.
"On a positive side, we do have free forex trading course on our website, which is even more popular than our scam alerts folder, which of course is always great news," he says.
According to Dmitri Chavkerov, the people that get hit by scams the worst are the people from poor developing countries.
"Most people that live in developed countries that invest in forex make tens of thousands of dollars per year, so when a forex brokerage goes belly up on them, I am sure it's extremely unpleasant, but at least most of the time it's manageable. The stories are quite different when it comes to developing countries. Many of these countries do not have stable financial systems, some do not have trustworthy banks, so people are forced to keep their savings at homes that are also not safe. So they seek safety abroad from financial institutions, such as forex brokers. Many regulated forex brokers do not take deposits from some of the developed countries due to high risk of fraud, so some of these honest, hard working folks are forced to go to unregulated brokers, some of which are honest, while others are not," says Chavkerov.
"We currently have an open case from a person whose father died and left behind $2,000 in savings. The person put it with a scam broker, and now cannot get it back," he says.
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SOURCE Forex Peace Army