How To Avoid Forex Scammers – Forex Scam Examples
The Forex scam will exist as long as the Forex market exists. As the market evolves, scam trading sites attempt to squeeze your money. How can we possibly solve this issue?
Forex scams will always be around to search for new victims, so make sure you don’t fall for the trap. Forex scammers tend to target newbie, desperate, or untrained traders. The best thing to do is educate yourself and learn at least the basics of Forex before starting trading. With time comes advanced techniques and knowledge. Once you master the market, you are no longer an easy target. Let’s see what the most blatant examples of Forex fraud are.
Examples of forex scam
1. Scam trading platforms
While there are regulated and reliable brokers, many online trading platforms are scams. Before trading Forex, check out blacklisted illegal trading platforms on the website of prominent financial institutions.
2. High-Frequency Trading
High-frequency trading is the execution of financial transactions at high speed by algorithms. It is a category of automatic trading that poses regulatory and ethical concerns but is not illegal.
3. Robot Trading Scam
Not all trading robots are created the same way. Trading robots are not a CFD scam as such, but many fraudulent trading sites have made the sale of trading robots a scam by promising their victims, inexperienced traders, easy and quick wins.
4. Signal-Seller Scam
The signal sellers are very popular kinds of scams, and these are mostly retail firms or individuals that promise you to win the market with a specifically elaborated system. Their services are often backed with suspicious testimonials of people who become rich overnight thanks to their systems. Please keep away from them!
4. Social Trading Scam
Social trading, or copy trading, consists of replicating the trades of seasoned traders. Tempting practice, the risk of losses is, however, not less than with traditional trading.
5. Refund Trading Scam
The refund trading scam is a double penalty imposed on victims who have already been scammed for the first time. It consists of making them believe in recovering all or part of their lost funds from a scam broker. These are typically bogus banks, bogus law firms, or various fraudulent companies.
6. Forex Report Scam
Always check the sources! If there is no link to the news channel’s site where the original report was published or cannot find this famous report anywhere else online, it is a scam.
Forex trading comes with risks with so many forex scam brokers around every corner. You can still make money if you invest enough time in learning how the platforms work and developing good trading strategies. Do your homework, check broker reviews, and educate yourself about Forex before venturing into trading. In that way, your chances of gaining profits will grow bigger. Most good traders should be able to use almost any platform with any broker and see very little difference in their results – it’s that simple.
While it is true that the Forex market is a risky market in which you can lose money, it cannot be said to be inherently a scam. When we talk about Forex trading scams, we are talking about scams perpetrated by fraudulent trading platforms. If you trade Forex with a well-established, legitimate, regulated broker, get some theoretical education, and practice on a demo account, and you will lower the risk. Once you master your market, it will be much more difficult for you to fall for the scam