Due to the advancement of technology and the internet, online trading investors tend to lose millions of dollars every year. And, most of these scamming incidents occur because of the forex broker scam.
However, some signs can help you spot whether a forex broker is a scam.
In today’s post, I am going to share a detailed discussion on how you can spot forex scammers, how to spot a scam, three major types of forex scams to avoid, and five signs of trading investment scams.
Let’s dive right into the details…
How To Spot A Scam?
In the world of Forex trading, there are varied sorts of scamming techniques existing at this moment in time. Due to the lack of adequate knowledge and desire to make a profit faster, many new investors become the victims of the forex scammers.
In the following, I will mention some of the most common techniques used by trading scammers. If you know these techniques, it will be helpful for you to spot a forex trading scam and know to Save Yourself from Forex Scams.
So, here we go….
- Unsolicited or unexpected approaches made by scammers through emails, text messages, or phone calls.
- If you don’t have the option to call the farm from your end.
- When you are pressured to make an investment decision within a short period.
- The only contact details given to you by the online forex broker or agent are the PO box address or mobile number.
- Offers given to you consist of high returns at little-to-no risk.
In order to avoid, Forex Broker Scam, you can follow these simple rules –
- Try to be patient while not responding to offers that give you quick and guaranteed returns.
- Always be aware of the software that shows you some sort of ‘Secret Formula’ for making quick money.
- Never install any software or program unless you verify that they won’t cause any harm to your personal computer.
3 Major Types of Forex Scams To Avoid
I must make you aware of the fact that the scammers involved in money scams, forex scams, and all other online trading scams always try to come up with newer and innovative techniques to bully beginner-level traders.
Currently, there are mainly 3 major types of forex scams that you must have to be aware of. In the following, I will make a brief discussion on each of these 3 major forex trading scams so that you get a clear idea about these scam types.
1. Robot Scams
The robot scam in the world of forex trading is a type of online scamming technique that is mainly done using computer code or specific algorithms. The algorithms are used by online scammers to create trading signals with the sole purpose of opening and closing forex trades.
To avoid such kind of robot scam, you can take the measures mentioned below –
- Don’t respond to unrealistic marketing messages.
- If the trading farm or forex broker sends you marketing messages like easy profit or secret formulas to become rich in no time, never ever reply to those messages.
- If the growth return shows a higher percentage, try to avoid such kinds of trading opportunities or offers.
- Always try to keep yourself safe from any kind of undiversified scalping methods.
- Never deal with an unregistered or unregulated online agent or broker.
2. Signal Seller Scams
The signal sellers are mainly individual agents who may send out to you varied types of trading ideas, starting from currency pair, entry price, direction, to target levels and stop loss.
If you don’t want to become a victim of the signal seller scams, you can follow the tips mentioned below –
- Do not subscribe to any trading farm in exchange for a higher subscription fee.
- Some of the signal sellers will only give the opportunity to make trading investments, if and only if you register with a specific agent or broker chosen by them. Always try to avoid this type of scamming technique.
- Don’t lose control by seeing unverified or unreliable forex signals shown to you.
- If the broker asks for your credentials or personal information like credit card info or bank details, never ever make any kind of trading investment with such an online broker or agent.
3. Phony Trading Investment Scams
Through this type of scamming technique, the scammer will ask for your investment sent to them so that you only get returns over time.
At this moment, it is one of the most common types of trading investment scams.
I would suggest you not respond to any kind of unrealistic return guarantee of your investment within a short time.
Five Signs of Trading Investment Scams
In this section of this discussion regarding the Forex Broker Scam, I will mention five signs of trading investment scams.
I would suggest you give your utmost attention to the following points or signs –
- Online trading System & Education without Any valid Proof or Documents.
- Spam Emails Requesting For Your Personal Information.
- No Legal or Registered Background Information.
- Guaranteed Quick Returns Within a Short Period.
- Displaying Secret Formula to Success.
Questions To Ask To Avoid Trading Investment Scams
In order to keep yourself safe from Forex Broker Scams, you can ask some questions. In this section, I will try to educate you about those questions that can help you not to lose your hard-earned money due to online scammers.
- What can you do from your end when you identify the agent’s offer is not valid?
- What are the rules & regulations of the contract?
- Are the address and contact details shared by the agent or trading farm valid and authentic?
- How easy or convenient is it to get customer service?
- Is possible for you to communicate with the agent by email, Skype, or phone call?
- Does the trading farm have a physical address?
- Are they registered using real names?
- Is the trading farm a registered company?
Are they able to provide you with their trading and performance history & data?