Forex trading advantages are numerous. The most important ones are Forex’s availability to anyone willing to invest money and time in it and possibly start trading without huge amounts of initial capital. However, don’t rush into trading without doing proper research and getting enough information about the market and the Forex brokers. This article contains the necessary advice that will help you avoid Forex scams and start trading safely.
How to spot scammers?
All Forex scammers have quite similar patterns of work. They usually offer a quick learning process, promising big profits overnight. Some may apply techniques without caring for your financial interests.
Regulated vs unregulated broker
There are whitelisted and blacklisted brokers and those operating in grey zones when it comes to regulations. The latter is the additional reason you have to check broker reviews. Sometimes some regulated brokers may slip into the unethical trading behavior and therefore be subject to investigation by the financial authorities. Checking the financial authorities’ websites in your country is important if you want to shield you from unpleasant surprises regarding Forex trading.
False trading signals
Phishing emails in which scammers allegedly offer 100% accurate trading signals are very common kinds of fraud attempts. Through these suspicious offers, scammers usually try to steal your details such as phone number, address, credit card number and even try to make you deposit some money on their accounts. Some will offer forex trading signals once in a while, and after collecting enough money, they disappear.
Unreliable robot trading software
Some suspicious companies and individuals will approach you with the offer of trading software. The software should make your trades easier and guarantee easy earnings on the Forex market. Forex trading robots are nothing new on the market. Moreover, they turned out to be useful for those who know how to take advantage of their features and learn trading strategies. No one can just rely on software features and expect to profit.
How to stay away from Forex scammers
Before you enter the market and invest some real money, be sure to stay away from scammers by following the next rules:
- Don’t ever give your details to random people contacting you through emails.
- Always check the Forex broker details in case some of the popup ads attract your attention. Check if the contact details are available on their websites such as email, phone number, or chatbots.
- you must check broker reviews to be sure the broker is regulated and can meet your trading needs in terms of fees, assets, withdrawal and deposit process
- Check with the financial bodies if the company is whitelisted.
- Only choose the brokers willing to enable you to learn trading from their free resources. They also should allow you to practice on demo without putting real money at risk until you gain some confidence and learn how the market works.
In case of a real scam, the remedies are unfortunately very limited. Since most of the crooks operate from abroad, the nightmare can continue, however, because once you have lost money, fake professionals may offer to help you recover the lost money. After a period of building trust (false identity in particular), they ask you for personal information (which they will use against you) and to pay a sum of money to be able to act.
In case you believe you have been a victim of a scammer, file a complaint right away. When it comes to trading as with any investment, always beware of promises of quick and easy wins. They are often only intended to enrich the people who offer them to you.