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, confidently, and above all relaxed. You’ll be able to intervene more efficiently in 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 scam spirit
Here is the check-list of dishonest ways some traders and brokers use to operate and to abuse your inexperience.
1. 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. It’s rather recommended to do your own technical analysis so you don’t fall victim to a bull trap and lose all your money in a matter of seconds.
2. 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.
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 a suspicious success rate. Honestly, these robots can turn out to be useful, but just if you go for brokers with a good reputation