The forex market is huge, generating $5 trillion on average from large volumes of trading on a daily basis. Forex trading scams have also increased nowadays, which that became a potential threat for every trader. The importance of learning how to avoid forex trading scams is a must for every trader to keep your investment safe.
Still, we keep hearing scam stories from newbies and even the experienced ones fail to notice the fake ones. These are unfortunately creating a bad influence on the non-traders who might consider us as a fraud.
We need to raise our voice against such manipulations to keep our forex industry safe from any defamation and abuse.
Today, we will get into the details on how to avoid forex trading scams once and for all.
Look for scamming signs
Take all your time to decide which is the authentic trading service you should invest in. Going through multiple trading communities is another way you can find out about a particular service provider.
Identify all the pros and cons while searching for a reliable forex broker to avoid any investment scams. Customer reviews on reputable forex websites are also very important for your research. The scam reviews on signal services work best as a warning sign. Give your all to find everything on how to avoid forex trading scams for life.
You must do your thorough research and proper background check to avoid getting cheated by a scammer.
No exact proof of any trading systems
Scammers cannot provide you with any proof of their trading system for verification. They would best try to show false evidence to hide their reality in disguise. Many traders would offer trading services without a trading room. These types of scammers are known as “snake oil merchants”. The name “Snake oil” is used for false traders. They usually don’t have any solid proof of trading of their trading history.
Also, they may provide false customer reviews, fake trading results and modified transaction history to manipulate you. Cross-check each and everything they provide
Scammers may also ask for your personal details for misuse
- Your full name
- Phone number
- Home address
Never give away your sensitive details to someone. You should feel doubtful when your brokers don’t provide you with a written risk disclosure statement. Verify every little detail of any official documents your broker provides you with.
More precautions to protect yourself from scams
It has become hard to differentiate between the fake and the real service providers, as most fake ones look more realistic. We have summarized a few points for showing you how to avoid forex trading scams.
- Find online guidance or professionals to discover any forex scam artists
- Take advice from a licensed financial advisor
- Ask for business registration proof of a broker you want to work with
- Go through all the fine print before opening an account.
- While trading lives, always trade for a short period of time initially and then withdraw the money. If it’s safe then deposit more funds.
- The availability of demo trading offers
- Background Affiliation Status Information Center (BASIC) website created by the National Futures Association (NFA) for complete guidance on choosing a reputable broker and avoiding scams.
- Register with the Commodity Futures Trading Commission (CFTC), it is the government agency that deals with futures and options trading.
- Do some research to find if there are any legal actions against any broker you wish to join
- Visit all forex forums to see any complaints about any services and contact the user who complained to investigate more.
- Check the company’s registration, business background and see if the company is legitimate or not.
- Never put your full trust in any big claims you hear.
You can prevent yourself from being a victim of a scam using all the above suggestions we made so far. Once you learn to escape from such scamming tactics then you can guide others on how to avoid forex trading scams.
Never forget to use a well-established regulated broker, that has a great reputation and positive reviews written by the majority. Make sure your service provider is 100% transparent about its fees and compliance policies.
If you can manage the risks of getting cheated then you can finally see how forex trading is beneficial in every way. When you see the business for real then you will know that forex trading is not a scam. Staying alert about scams is equally important as it is to review against any false allegations about forex trading. When you know how real this forex thing is, you can then realize how important it is to spread the true message of its reality to the general public.