How not to lose money in Forex: popular ways to scam
As long as there is Forex trading, there will be scammers of all kinds working. Even if the scheme is revealed, there will be more and more ways to defraud hapless traders. It is usually the newcomers who are "preyed upon" by swindlers, so you should study the market as much as possible and work only with reliable brokers in order not to become an easy target.
How to avoid being scammed in Forex in 2023?
There are some generally accepted tips on how to avoid being scammed by novice traders.
The offer is too tempting
If you are offered a quick and easy way to get rich in the Forex market, it is obviously a scam. It is impossible to become a millionaire in trading without putting in any effort and knowledge.
Reviewing materials about Forex platforms: reviews and comments from other traders on verified sites, for example, will also be very helpful. They can give an objective assessment of the broker's performance and allow you to base your decision to open an account on facts and not on the company's promotional offers.
Find out more about the company
First of all, go through all the links on the broker's website and especially social media, this will help you learn more about the company. Unscrupulous forex brokers are unlikely to actively maintain their social media pages.
Although regulation is a very tentative fact of a company's integrity, it is better than nothing at all. To avoid fraud it is better to look out for brokers with licenses from major regulators.
How do you know if you are dealing with a scammer?
As mentioned above, beware of working with those who promise to multiply Forex money overnight without any risks and, most importantly, guarantees of results. It is more difficult to deal with companies who cheat in the long term and not in the short term. In such cases, the trader may not even be aware of the fraud. But for the most part, many unscrupulous platforms use standard templates in their work.
Some attackers may operate under the name of a well-known company. They may not only have an identical website, but also a full-fledged office for added credibility. They may provide a complete set of documents (usually also fake) to give a person a complete picture of reliability and security
In this case, the only remedy will be to find as much information as possible about the authenticity of the broker, the good news is that it is easier to do on the Internet. It is often possible to contact current or former clients (if there are social networks). If, however, there is no information at all, no links for communication, etc., then it may not be a fraud, but it is not advisable to work with such a broker.
It happens that the companies rapidly develop their activity only in a certain period of time. They appear on the market quickly and then disappear rapidly. They may also constantly change their office address and regulators. You should not pay attention to such platforms, it is better to choose a Forex broker with a long history, with numerous reviews and real stories of traders.
Offers from different funds can be very attractive because they can promise to get a fortune for a small deposit. We can assume that if it were true, then every second person in the world would be at least a dollar millionaire. Of course, this is not the case and 99.99% of them are crooks. They can also provide a bunch of documents (with fake stamps of non-existent research centres, etc.) saying that their scheme is absolutely working. In reality, it is nothing more than a way to convince you to invest your money.
Trading Signals and Expert Advisors
There are a lot of so-called experts on the net, who have found the very strategy to make 100% money. Usually, they create closed channels on Telegram, creating the appearance of a VIP-group to which a select few get and with whom the guru shares his signals. Naturally, the service is paid and after payment the "expert" disappears. In the case of signals it is difficult to distinguish between truth and lies. Someone can really help and share their strategies for free. But they will never give a complete guarantee of profit, because their deals will be closed in deficit.
The development of artificial intelligence and its use in various fields could not avoid Forex. Not surprisingly, people have appeared selling various algorithms and forex robots. The promises say that the buyer will be given an accurate forecast of price changes in the near future and more. Of course, in most cases this is a hoax and the forecasts are based on fictitious analytical data.
In the Forex market it is basically impossible to guarantee a 100% accurate result. That is why it is always better to react to any promises of getting quick and easy earnings by ignoring them. Every trader should understand and soberly assess their risks. We have listed only some of the fraudulent scam templates. The scammers are constantly adapting and creating even more sophisticated scam schemes. Be vigilant and never risk the money your family needs.