Category Archives: Forex Scams
One of the best ways of making money is to invest in the foreign exchange market. This is perhaps the largest and most liquid market in the world. Nowadays, more and more people are getting involved in trading currencies and earn their living. As this market is gaining its popularity, forex scam artists are also trying to cash in money from this business. There are ways to identify these scammers.
The first step is to check out that your preferred Forex broker is accredited with the United States Commodities Futures Trading Commission (CFTC). You can also look for the regulator’s certification on your broker’s website and contact the CFTC to check the authentication of your broker. You must always check the legitimacy of your Forex broker so that you don’t end up getting scammed and lose all your money.
Next, if you see outlandish claims that are guaranteeing high profits in no time, then you need to stay away from them. There is no shortcut in trading currencies. When you are investing money in the forex market, you need to be very much dedicated, investigative, have good analytical skills, knowledge of economics, and consistence practice. This will make you an experienced trader in the Forex market. If you see any scheme that is assuring ridiculous guarantees through unsolicited calls, you need to be careful enough.
Another way of identifying a forex scam is when you see a promotion that guarantees little or no financial risk in trading currencies. There is no such investment that does not have any risk involved. Forex Scam artists will always give you false hopes and guarantee that your investment is secure, or they will invest your capital in the “Interbank Market” and so on. Stay away from people who make such promises. Even the professional traders cannot guarantee that their money won’t be at risk in any given day. It is very hard to predict the foreign exchange market and thus you need to stay away from people who are giving false promises.
If you see a firm that is not trustworthy, then it can be a possible scam. You must check the background, physical address and the performance record of the firm before investing your money. If a firm has the intention of scamming people, then you will find many horror stories about them on the internet. Similarly, a legitimate business will be having all their information with the local law enforcement agencies. Hence, it will become easier to distinguish between a genuine business and a scammer. Stay away from the firms who make bold claims about how successful they are in the Forex market, but unable to prove it in papers.
The fact that you can choose an online forex broker with a simple search is an amazing option for retail forex traders. However, the lack of regulatory bodies in the forex trading arena can lead to many fraud forex brokers who set up shop only to rob their clients. In addition to brokers that are out to make a quick buck there are others that have policies that are not suitable for their clients. It is difficult to know which one is more dangerous than the other since they both lead to large losses – one immediately and the other over time.
Looking at Forex Broker Reviews
There are various ways in which you can safeguard yourself from falling into the hands of a fraud forex broker. The first thing that you should do is to check for reviews and testimonials on specific forex brokers. This can be done over the internet but keep in mind that paid reviews and testimonials are not uncommon in today’s world. Choosing a forum where you can discuss the strengths and weaknesses of a forex broker is a much better option.
Here too, make sure that you do not fall prey to comments that are made by disgruntled forex traders. See more about this on plus500 scam. There are many traders that lose money due to decisions that they have taken and they tend to blame it on the forex broker since they are looking for a scape goat. Comments such as ‘the markets always fall as soon as I placed the order’ or ‘slippages were never in my favor’ are comments that do not reflect on the efficacy of the forex broker.
Learn to sift the comments in order to find the genuine reviews and comments before making your decision.
Important Checks for Forex Brokers
It is essential that you ascertain certain available features offered by the broker before taking any significant steps towards signing on. Here are some of them.
- Is there an option to open a mini account or an account with minimum deposit? Use this account to place a few trades and withdraw your monies. Once you are sure that the withdrawal methods are genuine and easy to use, you will feel relieved about having easy access to your money.
- Always reading the fine print in the contract. Boring as it may seem, you need to read every word of the contract and understand the provisions offered by the broker. Some incentives have caveats that will cause problems in withdrawing money. For example, if you have received bonus on opening an account and lost some funds, you may be allowed to access your money on the pretext that the funds have bonus amount included.
- Choose to work only with forex brokers that are registered with the financial authorities to ensure that they manage their accounts and funds well and that they have the required financial backing.