The Forex market is the largest financial market in the world. More than$5 trillion traded every single day, including currency futures and options. There are many unscrupulous people who will try to scam individuals through Forex trading scams. It’ll exist as long as the Forex market exists. Forex trading scams often pitch “too-good-to-be-true investment opportunities” as a way of convincing you.
Here are a few simple rules to follow in order to avoid Forex Scammers:
FOREX SIGNAL PROVIDER
Forex signal providers send out trade signals which usually include a currency pair, direction, entry price, stop loss and target levels. One of the challenges a rookie forex trader faces is determining which forex signals providers to follow and which to avoid.
Many signal providers provide Free signals. Before starting, you can always follow their free signals in a demo account and then decide if you’re willing to pay for their paid services. Also, check their track record how consistently they’re providing signals and sharing their analysis.
PHONY FOREX INVESTMENT MANAGEMENT FUNDS
There are many adverts nowadays promoting phony forex trading investment scams and fake forex investment funds. They offer traders the “opportunity” to have their forex trades carried out by highly-skilled forex traders who can offer outstanding market returns in exchange for a share of the profits.
Of course, many people who send their money never see it again. And sometimes your trades may get handled by shady traders and your account may wipe out after one or two trades.
DISHONEST BROKERS
Surprisingly, some forex brokers do not deal fairly with their customers and, in some instances, defraud them. Visit the Background Affiliation Status Information Center (BASIC) website created by the National Futures Association (NFA) to learn how to choose a reputable broker and avoid Forex trading scams.
Why You Should Educate Yourself To Avoid Trading Scams
The single most important thing a trader can do to avoid being scammed is to learn to trade on the Forex market and understand the market properly. A beginner trader must ensure that he/she has chosen the right brokers. Traders should make use of demo accounts and learn to make long term profits first before trading for real. A beginner trader should always be critical in their approach, analyzing statistics and making their own functions that they have tested and had success with on a demo account first.
A good rule of thumb in the forex market, as with other areas of investment, is that if it sounds too good to be true, such as annual returns of more than 100 percent, for example, it’s almost certainly a scam. Take enough time to make decisions before jumping into an investment. Weigh up the advantages and disadvantages and do your research.
ENHANCE YOUR FOREX TRADING
- If you’re new to forex trading, download our Forex for Beginners Trading guide.
- Learn to do your own TRADING ANALYSIS in a short period of time. Check out The Complete Guide To Forex Trading.
- If you want to get FREE Forex signals and make a profit consistently, join our free channel on Telegram here
