How To Identify Forex Scams And How To Avoid Them

The Forex market is a hugely lucrative market and is one of the largest financial markets in the world. It is estimated that over 5 trillion dollars are traded each day on the Forex market. Forex not only allows central banks to trade with one another, but it also enables people to visit new destinations on holiday and allows spectators to take huge advantage of its trading 5 days a week, 24 hours a day.

Many still to this day think that Forex is a scam due to how lucrative it can be, and others wonder whether you can get rich. Whilst you can earn a lot of money, it isn’t easy to get it at first. It requires a lot of work, a lot of research and a well-structured and in-depth education on investing and investment risk management if you wanted to make a proper living.

How To Spot A Scam 

There is an extensive range of Forex scams out there so it can be difficult to know what to look for, but it is essential to understand the clear giveaways such as promising the world for nothing. The point about this is there is never a certainty and if there was, brokers wouldn’t be telling you about it as people do not give this information away for free. As a beginner, understand that all these offers are attractive and it is designed to entice new starters. Here are some rules to live by when trading:

  1. Stay safe, and don’t run after an empty promise
  2. Be extremely critical with any software that states they have a secret (they don’t)
  3. Do not install any software, until you know it’s legit.

Popular Forex Scams

Forex Broker Scams

There are a select few criminals out there that imitate regulated broker or investment platforms that are already existing. This then deceives people into investing money into Forex funds that are non-existent.

Scammers will often use the name and registration number of a regulated broker so to avoid being scammed, check the FCA register and contact the company via the details on there. Don’t trust the numbers they give, and don’t believe any excuses they give. These scammers won’t just replicate regulated brokers’ registered numbers, but they will also create exact copies of websites so that they can get even more people and look legit when performing business. 

Robot Scams

Robot scams are found in forex trading systems. The scammers behind this will show how amazing and innovative their system is and say how they are amazing to generate trades automatically and often say that you can earn money in your sleep. The robot scam name is due to it being completely automatic and this software sounds great, but this softwares are not regulated by any sort of authority which means that when you pay and download, you could be downloading malware or sometimes you may not even get a download which results in you out of pocket, and money for the scammers.