Forex scams are set up by dubious individuals who are looking forward to swindling unsuspecting clients. In this guide on how to avoid forex scams, different scams in forex will be examined along with how to avoid them.
Some scam artists on the forex market claim to have signals that generate consistent profit. Therefore, they place heavy premiums on them. Some of these so-called signals are fake and will lose money in the end.
To protect yourself from this type of scam, do not take any signal or service at face value. Ask for proofs, and if possible test the signal on a demo account before purchase. This will prevent spending money on useless information.
Also, some people claim they have developed a trading robot that makes consistent profit from the forex market. Nothing beats getting a robot, activating it, kicking back and watching the profits roll. As good as it sounds, there are scammers that are trying to sell worthless piece of software. All they can do is marketing, and do not have a profitable robot.
To protect yourself from this type of fraud, always ask for proof of performance before buying. You can also demand a demo version which you can run on a demo account to assess the robot. One of the largest market places for forex software is the mql 5 market.
If you are unsure you can always ask someone in our forums.
Forex Investment Funds
Some individuals run dubious forex investment funds. They ask you to invest with them while they trade forex for you, for a certain return monthly. While this sounds good, the only problem is that some of these so-called expert traders cannot trade profitably. Therefore, they lose some or all of your money. Some will not even trade the funds, rather they abscond with it.
To protect yourself from being scammed, always do your thorough research. Seek and read reviews about the investment program. This will help filter out the scams. You can also ask on platforms like our forum.
Sadly, forex brokers are not left out when it comes to scam. There are some nasty forex brokers who have set up shop to defraud clients. They attract clients through advertisement and bonuses, then fraudulently deprive them of their funds.
To protect yourself from this type of scams, do thorough research before depositing your money with a broker. Read broker reviews and you can also ask for the opinion of others.
In conclusion, when making choices in the forex market, you must exercise caution to avoid being scammed. Be safe!!
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