Forex market facilitates the exchange of currencies amounting to over five trillion US dollars. It is therefore a great trading field that attracts traders of all sorts. The largest traders in the forex market could include central banks plus commercial banks. Holiday lovers and speculators also utilize the forex market that trades 24/7 and in five days weekly.
The forex market provides access to numerous currency pairings to exchange with, hence, there exists sufficient alternatives to pick from. The gains from successful forex trades are very rewarding. However, the wins in the forex market can only be made possible through having proper forex trade training, a great trading account, plus the comprehension of risk management methods.
Unfortunately, the forex market has been invaded by forex scammers who are always trying to rip off traders their hard earned money. They will always be there. Scammers target the entrant or beginner traders who lack the experience or skills to trade. Therefore, to ensure that you do not fall prey to them in receiving the right educational training and trading experience prior to joining the forex market. Doing so shall enable you to know how to quickly recognize scammers and evade them.
Identifying a Scam
One of the signs of a scam is where the trade assures you of 100% profit or returns, without there being any financial risk or any sort. You must realize that there is nothing like a riskless trade, where you only gain without having to suffer particular costs. Scammers make the ‘riskless’ trades seem very attractive more so for the new traders. They are often very attractive and hard to resist. But what you must remember is that when the deal is too good, you must think twice before you jump into it.
Three Signals of Forex Trading Investment Scams
1. Trading systems plus education lacking proof
There exist numerous con persons selling trading systems plus education. The trading systems look very enticing and promise great success and immense trade returns. Moreover, they promise to offer training plus education prior to the actual trading of your real money.
However, when you request for historical trades, they jump the question and try not to dwell on it, let alone provide a concrete answers to your queries. Always read between the lines. A system that promises training and education but lacks resources to do so is just a scam.
2. Email spam messages requesting for personal data
You may receive emails from scammers requesting for your personal data including your complete names, your mobile number, plus your residence’s address. Avoid disclosing your personal information to anyone who you barely know or trust. Your data may be used to commit fraud; hence, be careful, and only reveal your data to someone trustworthy.
Also, you must be aware of the risks you are placing yourself by opting to pick some brokers who have written disclosures of the risks. Evade brokers lacking risk disclosure statements, and even if they are to provide it, read through to understand the contents.
3. Unavailable background
Others fail to produce background information on themselves or the company they claim to operate. Before you commit yourself to a broker, an educator plus money managers. Ensure that you google and find out more about the brokers and the trading platforms, if you cannot locate any information on the broker or money manager, steer off from investing with them. that way you save yourself from getting scammed.
How to Evade Scams
Do not be too quick to decide. Take all the time you require to assess all situations and to ensure that the trade you are about to enter is genuine. Do not be in any rush and ensure that you have weighed in on all the pros and cons of trading with a particular broker or platform.
Google the name of the broker’s business name, and locate any available data on customer reviews. Previous users or individuals that have interacted with the broker or the business one way or another. Search for any scam review on the site, and also find out if there is any legal suit against the broker or business.
Forex scammers are there and will always be there as they continue to devise ways to steal from the unsuspecting traders. Therefore, always be on the lookout and ensure that you take your time before engaging a broker or money manager online.