How To Avoid Forex Scams

forex-scam

Every day, trillions of dollars are moved in the FX market. Traders worldwide are interested in trading CFDs, NFTs, cryptocurrency, and corporate stocks. Thousands of new forex traders and brokers appear every day, making it difficult to determine which broker is legitimate. A customer must conduct due diligence on a company before depositing funds to trade. Our duty at websites like Scam Report Consensus is to assist you as much as possible with that investigation and to proceed with any potential legal assistance!

What Is A Forex Scam?

Scammers utilize a Forex scam to deceive Forex traders by claiming to offer a trading strategy that will allow them to make a significant profit in a short amount of time. Forex scams became popular in early 2008, according to the CFTC (Commodity Futures Trading Commission). It’s not to say that any online trading program that claims to make a lot of money is a rip-off. That’s because it’s feasible to make a lot of money, but it’s impossible to promise every instant user income.

So What Questions Should You Ask Before Proceeding With A Trade?

Is the broker licensed and regulated?
How reliable is the regulatory body if it is regulated?
Is there a profit or reward for opening an account with the broker?
Is there a cash bonus for opening an account with the broker?
Is the broker providing profit-guaranteed automated trades or signals?
Is there any reliable information about the company on its websites, such as its history, financials, headquarters address, or other relevant information?
Can I check the integrity of any prizes mentioned?
Am I conducting due diligence to guarantee a sizeable corporate sponsorship (e.g., athlete sponsorship)?

The Three Major Forex Scams

A criminal never sleeps, and forex con artists constantly find new and improved tactics to defraud people of their money. That isn’t to suggest you can’t be a victim of a con. Being a curious customer helps, and we’ll go over some of the most common frauds that a well-informed customer may avoid.

Robot Scams

A Forex robot is a trading software that opens and closes transactions using algorithms or lines of computer code as technical indications. Not every Forex robot is a rip-off, and Expert Advisors (EAs) inside the popular MetaTrader suite of trading platforms, for example, can be used to create Forex robots.

Searching the internet for a Forex robot scam list might assist you in avoiding some of the most well-known con artists.

It would be best if you looked out for red flags such as unrealistic marketing messages, Very high percentage growth returns, Undiversified scalping strategies, and using unregulated brokers.

Signal Seller Scams

Individuals that offer forex signals typically send out trade ideas that contain a currency pair, direction, entry price, stop loss, and target levels. There are a few things to keep an eye out for to avoid falling victim to forex trading scams:

It would be best if you looked out for red flags such as Subscription fees, Broker-tied signals, Unverified results, etc.

Trading Investment Scams

Scammers advertising bogus Trading Investment scams and fraudulent forex funds abound. Several traders have claimed that Forex Kings and Forex Paradise were scams in the past. However, there is no substantial evidence to support these claims. In these scams, the forex trader or salesperson will show you a false forex portfolio or a particular stock that will return your money with a bonus.

Many people who contribute money never see it again, of course. The firm claims it has never heard of you and has never received any payments from you.

Tips For Identifying Forex Scams

Unsolicited offers: No one will randomly contact you regarding a forex investment opportunity, and it is likely to be a scam if the forex trader asks for your personal information.

‘Risk-free’ investing: Investing will never be risk-free, and any trader claiming to provide risk-free investment is likely a scam.

Unrealistic returns: Forex con artists frequently offer too-good-to-be-true promises about large profits on your initial investment. Any firm that advertises get-rich-quick investing opportunities is most certainly a scam.

Time pressure: If a company tries to get you to invest right away. Some con artists offer perks or discounts to urge you to contribute right away.

Social media adverts: Scammers are increasingly exploiting social media to promote phony investment opportunities. They frequently use photographs and videos of high-end things to persuade customers to invest.

How To Avoid These Scams

Get Rid Of The Get Rich Quick Mentality

There is no such thing as a quick fix for success. Without a doubt, Forex trading may help you make a good life, but it needs time, work, and talent, just like any other source of income. Consider any online trading platform or service that promises or claims to make you rich rapidly a red flag. Begin your hunt for alternatives and a regulated broker.

What If You Get Scammed?

If you suspect you’ve been the victim of a forex scam, you must act swiftly.

If you have any of the following, you should notify your bank as soon as possible:

The payment was made with a debit or credit card.

I made a bank transfer payment.

Personal information was divulged.

You can also register online fraud complaints.

You should also report the crypto scam to Action Fraud and the Financial Conduct Authority (FCA) so that they can investigate and, if feasible, reclaim your funds. This may also assist others in avoiding becoming victims of the same scams.

Most importantly, you can reach out to a crypto recovery service like Scam Report Census, which offers answers, counseling, and tools to those struggling with crypto scams, investment fraud, or broker disputes. Their staff is made up of experts with decades of experience working in the financial services industry and with regulators and authorities.