Jul 27, 2020

How to Spot Forex Trading Scams

Forex trading is a huge market that has an average of more than $5 trillion in trading activities. However, this market is not perfectly regulated where there is a huge opportunity for scammers to do their illegal deeds.

It is wise not to believe or trust promises of having quick fortune using secret trading formulas, forex robots that are capable of doing the trading for you, or algorithm-based trading strategies. Therefore, before you venture into the world of forex trading it is essential that you perform your due diligence and learn the different signs of how to spot scams and avoid it.

Let's go through over some typical forex trading scam examples

Numerous forex trading scams operate under the radar, while others offer their mischievous deals in plain sight. There are a lot of fake opportunities that operate across various countries across the globe and some are more common than others. Some of the most popular scams are fake forex signal sellers, dishonest scam brokers, and managed investment funds.

Always keep in mind that fake forex trading always talks sweet words, offering you amazing spreads that promise huge returns. They would even go as far and present fake testimonials.

How to spot forex trading scams

Often, forex trading scams appear too good to be true, this is how scammers make their offers attractive. This should be your first sign to look out for. You should also make our own research online for reviews and testimonials that you can find about the company. You'll be able to gather information on whether they are a scam. You can check out online forums that tell stories about how these companies operate from people that have been victimized by their operations.

How to avoid becoming a victim

You don't have to be a victim of these forex trading scammers if you know what to look out for and if you properly exercise caution in choosing your forex broker. You should always check for the company's license and it should be regulated. Authorized companies carry the ASIC, MiFID, and CySEC logos and numbers. Another thing to keep in mind is that not all forex trading companies are considered legitimate if they are listed in Google ads because any company can pay to get a spot on the search engine giant's ad spaces.

In addition, it is always better to choose forex trading companies that require a deposit, along with the terms and conditions attached to it, compared to those who offer welcome bonuses or demo accounts. Make sure that you conduct due diligence before venturing into the world of forex trading. Never work with anyone who refuses to give you enough information that would support their claims.

Furthermore, you should not be giving our personal information easily because forex trading scammers may also ask you for information such as your full name, address, email address, or phone number. Protect your personal data, especially from someone you can't trust. Always expect legitimate traders to provide you with a written risk disclosure agreement.      

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