Forex Trading is open for everyone with a will and power. Your next door neighbor might be making some cash on the side trading online, your university professor could be using his mathematical strategies to profit, even your mother can enter forex trading world and succeed tremendously. Along with “good guys” come the scammers – the cyber criminals. The question is how to avoid scam in forex business?
Can you trust forex trading?
SIGNS OF FOREX SCAMS
- You might be dealing with a forex scam if you are approached aggressively and in an unsolicited manner. Especially if its's a company you've never done business with before. The first high-pressure call may come from a vague contact on Facebook or it could take the form of a phone call, email, or letter. They might offer investment seminars, gifts, or just simply, super high returns on your investments.
- We have received multiple reports and questions about trading groups active on popular messaging apps like WhatsApp or Telegram. Some of these groups advertise themselves as traders who offer ‘custodial’ services – they promise massive gains in a short period of time if you deposit money into their account.
- Scammers offer exaggerated high returns.
- Fraudulent service providers impose withdrawal restrictions and/or charge a massive commission when you want to access your funds.
- Scammers typically use complicated jargon, and the client agreement includes vague language. Scam brokers could try to play on the inexperience of retail traders.
- At scam brokers, customer service is non-existent or it is difficult to get reach.
- If a broker is featured on the warning list of a regulator, it is usually a scam broker.
- Check the Client Agreement carefully, and make sure it does not include locking the account without notifying the user, or a ban on withdrawing funds without justification.
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How To Avoid Scam In Forex Trading
Whether you are a professor in applied mathematics or a housewife, the formula of success in forex trading is the same for everyone. You have to:
1. Educate yourself about forex trading. It is a never-ending story, so don’t think that you can grasp it within a month and than leave it at that. Your knowledge is your weapon, so the more you know the bigger changes you have to make money.
2. Practice as much as you can without giving up. Whether with demo account or with real account you have to put your skills to action. Losing should not be considered as a negative thing. After all, you learn on your mistakes, remember?
3. Avoid scam at all cost.
Today scam is everywhere and the forex scammers use wise physiological maneuvers to attract the newbies. Forex scam can take many forms. My most favorite of all is a promise of wealth with a particular strategy that you, of course, have to buy. Come to think of it, the fancy strategic moves are not that expensive. The price varies, but it is possible to find “an outstanding forex system that will dramatically boost your profits…” for about $100. That doesn’t sound so bad, especially compared to all the profits you will get… or not! Let’s think for a second. What if this is scam? By the time someone realizes it, thousands of dollars will be made of the lured beginners.
The next scam comes in form of forex brokers. Forex brokers play an extremely important role by creating a bridge between our world and a trading market. When a forex broker engages in fraud and scam, usually forex trader’s money simply never gets to the market at all. Your investment might be stolen without any trace by professional con artists. To avoid this, please follow these simple steps:
1. Check everything about your forex broker – Review Forex Brokers from top to bottom: read reviews, ask questions, check out terms and conditions on the site, and find out if your forex broker is regulated by an authority. Once you have identified a broker, go to its website and check for forex trading reviews. Should you find no forex reviews or comments, then most likely it is a fake forex trading broker. Reputable forex brokers are commonly known, transparent, trustworthy and have been in existence for some time with a proven track record.
2. Consider making a small deposit first. Do not rush for a bonus or for major profit. First of all, you will not make profit over night. Forex trading requires a lot of patience and I wouldn’t even dare saying that you will make money after 1 month of trading, although according to a monthly poll more than 63% of forex traders think it is possible, but that is another topic and I will not go into details. By depositing a smaller amount you will be able to check whether your funding goes through without any complications. You will also be able to test the quality of support and other services forex broker claims to provide.
3. Withdraw your profits whenever you can as much as you can. Do not leave your money sitting there forever. Some forex brokers offer interests for leaving your money in the account (like in a bank), but it is better to take out your money and check that the withdrawal process doesn’t have any flaws! It sound easy – take out your money, when in fact it is much more complicated than you expect. Documents must be filled, phone calls must be made, and your identity must be proven. To make story short, making funds is always easier than claiming your win!
4. Avoid The “Too Good To Be True” Offers. Profitable forex trading – achievable over a period- requires patience, dedication, discipline, and strategies. You are better off from individuals peddling quick and easy money plans as they are after your money. Follow your trading plans diligently.
Forex trading is profitable but risky business. The risk is coming not only from forex trading itself, but also from your choices. The fact that you trade online doesn’t make it any more secure. Internet can be trap for inexperienced forex traders, so the best you can do is to check everything more than twice before you invest your money. Be responsible for your trading experience.
You don’t want to end up hating it just because you fell into the hands of bad guys. It is your responsibility not to invest in unknown, unchecked, not reviewed and not authorized broker. It is also your responsibility not to buy crappy “wonder world forex strategies” that promise to turn you into the richest man alive.
Do not try to catch a fast ride in forex trading – it never works. Patience is the key to your success.