The forex market is one of the largest financial markets on the world, with a success of 5 billion dollar trades every day. Forex allows corporations, central banks and independent traders to trade with each other. Now, anyone can access the forex trading market easily through a forex broker. With just a click of a button, you can trade on the direction of the British pound, Japanese Yen, and Euro, among other major currencies. The success in forex trading has lured in some fraudulent individuals who want to make money the quick way.
While the financial gains of forex lucrative, it is not that easy. Having a funded account, a proper education, and understanding risk management is not enough to get you started on forex trading. You have to watch out for the investment scams you may come across in the forex business. Some forex scams are fairly new but they will be around as long as the forex markets continue to exist.
Forex scammers are known to target beginners or generally uneducated traders because they are more gullible. The most obvious giveaway of a forex scammer is the guarantee for unattainable profits with little to no financial risks. First, you have to understand that there is no such thing as a 100% guarantee. If there really was, market players would charge a hefty amount for the information. Some offers may sound attractive, especially when you are new to game. If it sounds too good to be true you should always walk away.
You can avoid scammers by avoiding empty promises, being wary of secret formulae’s from any software and do not install the programmes until you are certain they will not damage your devices. Another obvious giveaway is that scammers do not register with any type of regulatory authority, registering your account with brokers will provide you with a proof of legitimacy.
The three major types of scams
- The forex robot scams
The forex robot is a trading program that uses computer codes and algorithms too enter and exit trades. They are built with expert advisers. Not all robots are scammers. If you come across a robot with unrealistic marketing messages, high percentage growth returns, with unregulated brokers and undiversified scalping strategies then you
- The forex signal seller scams
Forex signal sellers work individually and send out trade ideas surrounding the direction, currency pair, target levels and stop loss and entry price of a forex trade. There are several things you should watch out for when you are facing a forex signal seller scam. They will ask you t pay a major subscription fees without any verification, they have broker tied signals and their results are pretty much unverified.
- The phony forex trade scams
These are hard to detect because many advertisements are promoting these types of scams. A slick sales person will sell you the ideas and unverified results of their forex funds. They ask you for an investments and all you have to do is enjoy the returns. Many people have sent their finances over to the phony trade scammers never to see it again.