Online scams have formally overtaken the modest phone call scamming technique scammers employ. Spotting scammer online is hard. Fortunately, if one swindling scheme gets revealed, scammers detect new loopholes to seize your money. Even Forex trading scams are popular. They will stay as long as Forex market survives.
Is there no way out?
Scammers are persistent and scamming is their career, so it is wise to ensure that you take extra care to avert from their trickeries. Forex scammers lay a trap for desperate, vulnerable and uneducated traders.
It means the best weapon to have in your arsenal is ‘Knowledge’. You need to get educated about Forex market basics and read advanced trading techniques. With good knowledge, you will not be an easy prey to their tricks.
How Forex scams function?
Investment scams can take different forms. One common thing that makes traders get scammed and lose their money is lack of trading experience. Scammers try to take advantage of your fears and hope. No one desires to lose and this is where Forex swindlers step in with an exciting offer.
First thing to learn is Forex trading comprises of very high risk and losses are unavoidable. The moment you accept this reality, no trading scammer can every exploit you.
How to spot Forex scammer?
1st giveaway – Guaranteed large profits without or negligible financial risk
In reality, there is no 100% guarantee. In case, there is then every trader will share this information with other fellow traders. New traders will find guaranteed offers attractive but need to be careful and think.
…..if this offer sounds too good then…
……it probably is not.
Therefore, stay safe without running after empty claims. Even be cautious about trading software claiming to be programmed with secret formula. Never install any apps, until you are sure that it will not harm your computer.
2nd giveaway – Scammers are never registered with regulatory authorities
Bear in mind that genuine and honest brokers always offer legitimacy proof. If you discover that a potential Forex agency is dishonest about their regulation then contact regulatory authority. They will offer regulated companies list as well as cases list opened against regulated agencies. It is a good way to know, which Forex broker to avoid.
3rd giveaway – No demo account option
If the Forex broker doesn’t offer this option or discourages you from demo trading then this is certainly a red flag.
Extra steps to take for protection against Forex scams
In forex arena, accountability and transparency are key.
- Be sceptical of brokers providing incomplete information regarding their performance history.
- Companies of every kind wish to make first good impression but you can sense trouble when it is too perfect.
- Unsolicited telephone calls can be made to persuade you to invest.
- May ask your personal information or even ask you to send cash money via unsafe payment method. [never give sensitive details or cash to a total stranger]
How to choose a reliable Forex broker?
It is not easy to locate reliable Forex broker. Take time and effort to research on a potential Forex agency or broker. Google, read consumer reviews, check for any unresolved legal actions, and even browse scam reviews to check if the potential Forex broker is trustworthy as claimed. Proper background check reduces risks though be sure to ask for their business registration proof and read fine T&C prints before opening an account.