The main forex trading scams are looming over the Internet, looking for their victims, and having some nasty things in common. Once you learn to detect them, you’ll be able to trade safely and relaxed. You’ll be able to intervene more efficiently on preventing other traders from falling in the scammers’ trap.
Forex scammers lack transparent contact details on their websites and lack much content dedicated to online training. Most often, they come up with perfect strategies that guarantee high earnings in a short time. At the same time, they urge you to open an account immediately to make maximum online earnings with the magical strategies mentioned above. And all that without offering a useful tool for first experiences on forex trading such as a demo account, i.e., a virtual account without real money investment.
Furthermore, it isn’t easy to find on their official websites references to regulations and licenses for trading and adjustments to the supervisory bodies’ new directives.
It may also happen that convenient bonuses are promoted with excessive amounts promised during the registration phase by brokers who present themselves as regulated and license holders. Many dishonest brokers promise high bonuses just for online signup.
In practice, they are already trespassing the rules by approaching you in such a perfidy way and cannot comply with any regulations.
It smells like scams spirit
Here is the check-list of nasty ways dishonest brokers use to operate and to abuse your inexperience.
1. Forex broker scams
These villains are going to ruin you if you make a bad move and accept their offers. They often fall in grey areas of business, meaning they have no license to operate as brokers. If you start dealing with them, you allow them to misuse your money and, in the worst case, to disappear with it. You will stay duped with no means to go after the scammers and take your money back.
2. Forex signals scam
Apart from professional, reliable forex brokers, forex signal scams are also part of the forex world. They are annoying, omnipresent on social media, and persuasive in their temptations to take your money. In return, they offer “precise” information on currency price movements. They guarantee high returns of investment with no evidence of their success on the Forex market. If they are not ready to provide you with reliable results of their previous trades, they seem to be forex trading scams.
3. Forex trading robot scam
Softwares are excellent if you know how to implement them in your strategies on Forex. But as a new trader, there will not be much. Forex scammers will try to lure you with their poorly performing algorithms with suspicious success rate. Honestly, these robots can turn out to be useful, but just if you go for brokers with a good reputation.
4. Guaranteed bonuses for just signing up
Bonuses for signing up are not part of the honest forex game. Brokers that use them to attract clients are to be put on a blacklist of regulatory agencies. Consequently, if phone calls and emails from brokers still focus only on this element, this could be a scam alarm.
The importance of training in avoiding forex fraud
Making easy gains in an online investment does not depend on a magical strategy. Forex requires study and commitment to acquire the best skills needed for every trader to be successful. It is advisable first to know the basics of what Forex is and how it works. You must be ready to discern the forex margin and the spreads and how and when to invest in Forex and then put these into practice. First, you have to train yourself with a virtual account without immediately throwing yourself into the use of your capital.
The best-regulated brokers
The Internet is abounding with forex trading scams but avoiding forex scams is possible. Be careful in identifying only the best-regulated brokers. Before selecting a broker, you must check broker reviews and compare as many brokers. Read them in detail since they give you clear information regarding the trading services, such as the training, trading tools, efficient and easily reachable customer support, and regulatory requirements fulfilled.
From time to time, it is likely that good brokers that yesterday passed the test regarding regulations and rules happen to use their reputation by practicing churning methods or other sophisticated techniques too. And that is another reason to rely on reviews. If you have a presentiment that the broker is playing with, check with local regulatory agencies so this broker bears necessary legal consequences. And of course, to protect fellow traders from the malicious companies of individuals.
The importance of the training on a demo
Regulated and honest brokers will offer you training. That’s also in their best interest to properly convey advice regarding the management of your account. The training generally goes with the registration of an account. It contains useful strategies for investing in Forex and simulated trading sessions with initial notions on Forex. Also, there are video tutorials for newbies on analyzing a market based on technical and fundamental analysis. These materials are completely free, offered exclusively to the trader immediately after opening the account. You will also have access to free support with regulated and honest brokers, even using just a demo. You can use a demo with no time limits, and you decide when to switch to a real account and invest real money.
Forex trading scams – a lot is up to you
No one can make a fool of you at the bottom line if you take enough precautions to avoid forex trading scams. We gave you some guidelines to stick to, and if you do so, you are on the right way to develop your Forex career. After you learn the ropes and pass training on demo accounts, you will likely venture into the real trading process. At that point, you will have no right to blame your broker. It would rather be your bad decisions or using the wrong strategy at the core of your failure.