How to identify and avoid forex scams?

The forex market is the biggest financial market in the globe, with over $5 trillion traded every single day. Not only does it permit central banks and corporations to trade with each other, but it also permits speculators to take advantage of a market that trades 24 /5.

Few plain rules to follow to avoid scammers

-Stay safe and do not run after empty promises

-Be especially careful of software that claims to have found a ‘secret formula’

-Do not install any programs until you are sure they won’t damage your computer

Scammers never register with any regulatory authority. True brokers provide proof of their legitimacy. If you feel that a forex broker is lying about their regulatory status, you can contact a regulatory authority who may be able to provide a list of regulated companies, and a group of cases opened against regulated companies. This will help you recognize which Forex brokers to avoid.

Three signs of trading investment scams:

1-Trading systems and education without any proof:

When you ask scammers to give any proof of their trading history, they avoid the question. Some traders would give their systems without a trading room or any services. These kinds of scammers are referred to as “snake oil merchants”. “Snake oil” is the expression traders use for false traders and trading systems that have no valid proof of their trading history.

2- Email spam asking for personal information:

Scammers may \ask you for personal information, such as:

Your full name

~Your phone number

~Your home address

Don’t give away your personal details to someone you don’t totally trust. Be doubtful of brokers who don’t give you a written risk disclosure statement. Even if they do, read the statements in detail.

3- No background:

Never work with someone who rejects to give you their background information. Always do a fast check online to see if the person or company is legitimate.

Steps you can take to protect yourself :

Make sure to contrast the regulations of the regulatory authority with the idioms on the broker’s website to find inconsistencies and anomalies in their terms. If you don’t trust your own judgment, or you don’t have time, ask the advice of a licensed financial advisor. Also, you can ask for a business registration guide before registering with a broker. Make sure to read through all the good print when opening an account. From time to time scammers use account incentives opposing the trader when it comes to withdrawing funds.

When you start live trading trade a small volume for a short time initially and then try a withdrawal. If everything goes easily, it’s safe to deposit more funds. The availability of a Demo account is another sign of a good or bad broker. If you don’t get offered this choice, or are depressed from demo trading, this is a strong sign of a forex scammer.

Questions to ask to avoid trading investment scams:

Ask yourself these questions:

What can you do when you discover a broker’s offer is not for you?

How binding is the contract?

How simple is it to reach customer service?

Can you reach the broker by phone, Skype, or email?

Do they list a physical address?

Do they use actual names?

Are they a registered company?

Can they provide performance history?

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