As with some other monetary markets, the Foreign exchange market has been the targeted market for scammers. They find various scamming methods, unethical behaviours, false promises of profit without risk, etc for their fraudulent activities to benefit new traders. Luckily, there are simple ways you can identify Forex scammers and shield yourself from their deceptive promises. In this article, we'll cover precisely that and show you how Forex scammers work.
How to identify a Forex scammer？
Forex scammers follow different methods, but they all use some common things, i.e., non-regulated and non-transparent. They guarantee profit results which sound unrealistic. Forex beginners may face a struggle in identifying these attributes because of their inexperience. Inexperience is the main reason why forex scammers frequently target beginners. As beginners gain experience in forex trading, it will become easy to identify these unethical practices and protect themselves from Forex scams.
How To Save Yourself From Forex Scam？
If you search for Google “Foreign Exchange Scam”, the number of results the internet searcher will genuinely confuse you. Nowadays, the forex trade industry is preferred controlled than it was a couple of decades ago. But still, there are numerous dishonest trading brokers whose primary objective is to cheat traders.
Forex traders need to be informed as possible since this will surely help them differentiate between forex scammers and reliable brokers. Foreign exchange traders must carefully research their brokers and history before signing up for a live account and making a real-money deposit. Trading the foreign trade market is hard enough without having the experience to deal with scammers who work against the interests of their clients.
Following are the Foreign exchange scams listed as the scam types that have been involved in Forex frauds in the past as well as in the present
1 Signal sellers
The signal seller scam is a scam that usually works by an individual or an organization. The main objective is to sell information on the trading market and claim that this information is based on professional forecasts. They often assure the credibility of information to inexperienced traders. They charge either a daily, weekly or monthly subscription fee for signal providing service but do not share any information that helps the trader make money. They will typically have a large number of tributes from supposedly genuine sources to acquire the trader's confidence and yet, in all actuality, never really gauge profitable trades.
2 High yield investment programmes
High yield investment programs are just a Ponzi scheme in which an excessive level of return is guaranteed for a small initial investment. In this method, the profit is given to initial investors from the money generated by the current investors. This is a continuous process and, once there are no more investors in the scheme, the proprietors usually close it down and take all the leftover money.
3 Scams through softwares
Forex robot scams guarantee significant gains from little effort or knowledge. They may use misleading figures to persuade clients to purchase their items.
Forex traders can avoid such scams by obtaining WikiFX which is a global forex broker inquiry platform of which traders can use to search for their relevant broker and find rating based on the brokers performance. WikiFX provides features such has exposure on a particular broker and they do investigations aswell into cases pertaining withdrawal issues, slippage etc. Enhance your trading with WikiFX by downloading the app.
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