The Most Common Forex Scams and How to Avoid Them
3 Forex Bad Signals You Should Be Aware Of
Forex trading is more popular than ever. The potential to make incredibly high profits makes it very appealing, and the low investment amounts that yield huge gains mean that anyone can get involved. Of course, as with anything that requires large sums of money and profit, scammers are very attracted to investors in currency. When up to $5 trillion are traded every day, it's no surprise that bad actors will try to scam some of the money for themselves.
However, knowing the red flags to avoid can make it much easier to prevent the risks of scams and make real money from the forex market. Here are some of the most common signals of scammers that should be avoided at all costs. As much as you think you know about them, they're still tricking thousands of people into the trap.
1. Incredible Returns
There's no disputing that making large amounts of money is possible with forex trading. Day trading is fast, and even just knowing the basics of day trading strategies can help you get a significant return on your investments.
However, as with all investments, there are risks. If you find a broker or a trading platform that consistently assures you that your profits are going to be certain and very high, that's a sign that they may not be as legitimate as you think. Avoid the brokers and platforms that promise incredible returns on your investment.
2. Forex Robots
Automated software that can do a lot of the hard work of forex trading for you have proven to be very valuable for investors. However, along with the hype and potential of forex robots, there are also scammers and predators who care little for the benefits of automation and are only looking to take your money. Like the promise of amazing and unbelievable profits, be wary of any platform that assures you that their robots cannot fail.
Forex robots are very valuable, but they aren't as flexible or intuitive as the human eye. Choosing a respected broker is essential, so don't fall for any exaggerated claims for success.
3. No Risks
All investment opportunities come with some element of risk. Whether you're an angel investor putting money into a new restaurant or you're trading currency every day, there are never going to be guarantees of a return on your initial investment. Watch out for those brokers that promise no-risk investment options.
Forex trading is unpredictable, and if your money management is not as strict as it should be, you can lose your investment money just as quickly as doubling it. Be very wary of any broker that promises zero risk investments, as there's a high chance that they want to take your money and run.
It can be very daunting to enter the world of forex trading, but there's a reason why it's never been more popular. Now, anybody with a phone and an internet connection can start buying and selling currencies for profit, but with the large volumes of cash involved, it's no surprise that scammers are always skirting the edges. Always look for the legitimate and well-regarded brokers and forex trading platforms. Avoid those that promise more than is believable and you'll be much more likely to find a genuine partner that can help you have more profitable days than trading days with losses.
Forex Scams: How To Report
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