Forex trading is one of the finest ways to make money in online trading but the problem is, you must spend a lot of time to learn it.
Most of the people use to believe that as someone else is making huge money in forex trading with spending quite a few hours daily then definitely I will make a portion of it.
They start without learning and here is the beginning of online trading scams.
Forex scammers mostly target beginners because they do not have much knowledge. There are different types of scams in forex trading. They are more common than you think, and new ones will continue to pop up.
How will we recover your scammed money in forex trading?
Online Trading Scams has a team of professionals to help forex traders recover funds from forex trading scams. All you have to do is send us proof that you have been scammed. Our team will contact you on how to proceed.
But if you are a beginner and want to dive into the realm of forex trading, you should read this complete guide on” forex trading scams” before opening an account.
What is forex trading, and how does it work?
Forex is the world’s largest trading market, with over $5 trillion traded every day. The market is open 24 hours a day. When trading closes in New York, it starts again in Tokyo. That is how the vast sums of money are doing the rounds in forex trading.
Forex is also known as foreign exchange or FX. It’s the largest financial market where currencies are traded. With just a few clicks, You can buy and sell one currency against its value to another. Currencies are always traded in pairs. Major pairs that 80% of global forex trading is EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Is Forex trading a scam?
Forex is not a scam in itself. It is a legit trading market. But, as long as there is a significant financial market, there will be scammers. However, forex trading scams is not a frequent phenomenon and can be avoided by working with trusted and reputable brokers.
Is forex a losing game?
For some people, forex is a losing game. It is because the forex market does not add value to the market. Some make profits, and some have to make losses. The following factors are essential if you want to become a profitable forex trader.
- A comprehensive trading education
- A sufficiently filled trading account
- A good understanding of risk management
Signs of forex trading scams
It is always the same with online scams. Scammers will promise unusually high profits with little or no risk.
Firstly, we should clarify that there is no such thing as a guaranteed profit. If there is such a thing, nobody will share them. Many of these offers seem tempting, especially for beginners. But you need to accept that a loss will come and no one is free from it.
Here are some simple rules to avoid trading scams:
- Don’t believe in empty promises.
- Beware of robot scam that is said to contain a hidden formula for success.
- You should never install applications until you are sure that they are not harmful to your computer, laptop or mobile phone.
- If you doubt that a broker is not telling the truth about its regulation, you can contact us, and we will do all the necessary things for you.
- Get a list of regulated brokers, and this will make it easier for you to avoid scammers.
Types of forex trading scams
There are many types of forex trading scams. Among the popular schemes, here are some generally used techniques to scam people.
A trading robot is a program that uses algorithms as technical signals to open or close trades. All trading robots are not scams. Like some robots are usually built using Expert Advisors (EA), which can be used on the MetaTrader trading platform.
However, some scammers use fake figures to convince customers to buy their software.
You can search online for scams trading robots that you should not purchase. It would be best if you also considered the following to prevent fraud with trading robots.
Mostly trading software is used to intensify past performance and trends. They can not understand all the aspects of the market.
Suppose someone is advertising unrealistic features of a trading robot. Then it is most likely to be a scam. Promising high growth rates is another false statement practised by scammers. You should always weigh up the use of a trading robot like a business decision and give your emotions as little space as possible.
Signal sellers( another way of scamming)
Signal providers usually sell you trading ideas in terms of currency pair, direction, opening price, stop loss, and target price. You should consider the following factors if you don’t want to fall for the wrong forex signal seller.
Subscription costs: You are often offered amazing results for which there is no evidence. To get access to such trading ideas, you have to pay high subscription costs. Or you transfer your credit card or account details and get ripped off in another way.
Signals linked to the broker: Some signal brokers offer signals to you, but only if you
register with a specific broker. It means that they are likely to get commissions or other forms of remuneration. So their motivation is to get you to trade, whether you win or lose. However, some are interested in your trading successfully because they will continue to receive commissions from the broker. But in both, you should be careful.
Unproven success: Everyone can claim that their trading ideas have led to great success. But if they don’t provide evidence, it means they don’t trust their own services. This signal is a clear warning signal.
The most critical aspect of avoiding Forex trading scams is thinking like a businessman and recognizing all possible traps in advance. Never follow empty promises that pretend unrealistic profits.
Phoney forex trading scams
Nowadays, many advertising agencies are circulating that make false promises regarding online investments in the forex trading market. Most of the time, a professional-looking supposed financial adviser appears who advertises the invented results of his fund. As a customer, all you have to do is transfer the desired amount, and the rest of the job is to enjoy the profits.
There is no doubt, many customers who fall for this type of trading scam will never see their money again. Sometimes the fraudulent company claims that it never heard from you or never received any payment from you.
What started as a scam evolves into classic theft.
Another result could be that an account is opened for you, but with a dodgy, unregulated broker. But, after some trades, your entire account balance will be deleted. You then blame the markets but put the money in yourself. Because the broker is not regulated, it impossible is almost to get your money back. If that is the case, Online trading scams help you get it back.
How to avoid forex trading scams?
Avoiding trading scams is not easy, especially for a beginner. So, it is essential not to make decisions in excitement. Make sure you’ve considered all the positives and negatives beforehand.
Find a reliable broker.
Finding a reputable broker is not a straightforward task, but finding a good one will pay off in the future. As a first step in choosing a broker, you should google the name of the broker.
Search for customer reviews on trusted websites. If there are no reviews or fake reviews, keep your hands off the service provider.
You can also read reports of trading fraud cases and find out whether the broker under consideration is as reliable as it claims. Also, find out if there is any form of legal process underway against the broker.
To do this, you can visit discussion forums and see if anyone is complaining about possible account withdrawal problems with the said broker. If so, contact the user and ask for further details.
Stay away from easy money schemes
Easy money? That does not exist. You should never believe a person who wants to convince you of unbelievable returns of 25% per month or more than that. It is nothing more than daydreaming.
Forex trading takes a lot of time, patience, knowledge, and calculated decisions to be successful. There is no easy way to make money here. If you are willing to invest enough time, you can make money from forex trading.
Some online trading scammers send you emails asking for your personal information. They demand your name, address, and phone number. They may even fool you to fill a registration form, including your bank accounts and credit card details.
Remember, Never give personal information to someone you don’t know trust. Be suspicious of brokers who don’t provide written risk warnings. Even if you do, read the details because traps are often built into them.
Detect unreliable brokers
Many fraudulent brokers sell trading systems and training opportunities. If you ask them for some form of proof of their supposedly successful trading history, they avoid it.
Ask questions, even if they seem irrelevant to you. Make sure you know your rights, your contacts, business registration, and business background. Do not forget that all information about the broker must be in writing. Never rely on phone calls or verbal conversations.
Never work with someone who refuses to provide you with information about their background. No matter whether a broker or a trader. Always do an online search to see if it is risky trading that the person is offering.
Ask a financial adviser.
Compare the regulatory authority requirements with the conditions on the broker’s website to find possible differences. Ask a licensed financial advisor for advice. Be sure to read all of the fine print before opening an account. You can also contact online trading scams to know all the possibilities of forex scams.
Start with a small amount.
Sometimes forex trading scammers use account incentives against the customer when it comes to withdrawals. For example, a scammer could claim that their terms and conditions do not entitle them to withdraw any bonus. At the beginning of your trading activities, you should always make a small trade. In that way, you can withdraw money to check that everything is going smoothly.
Forex demo account
Easy access to a free Forex trading demo account is another sign of whether it is a trusted broker. If you are not offered a demo account, then it is a strong warning against an unreliable broker.
What to do if you have been scammed in forex trading?
If you have been scammed, the best way is to hire a professional to get your money back from the scammers. To get the job done with full confidence, you can contact us at [email protected].
You can believe that your money is gone, or you can hire a professional who has mastered the rules and laws of financial markets. The Choice is YOURS!
It would be a good idea to report us by visiting Online trading scams, and we will do the rest to get your money back from scammers.
The bottom line:
To avoid online trading scams, you should always trade with a regulated broker that has proven itself.
Check the address of your broker on the website. Verify this address to know if it even exists. If the address is not there, then you should not work with this broker. Ask them to provide a performance history. If they refuse to do so, do not work with them.
The allure of fast money is everywhere and tempting, so it is easy to get in the trap. But, you need to create a system where you are winning more than losing. It takes time and a lot of hard work and patience to get success in forex trading.
After reading this guide, there is a strong possibility that you have enough knowledge to identify forex trading scammers.
If you have already chosen an unreliable broker, and you fear that you might be scammed. Visit online trading scams to protect your money from scammers.