How to identify and protect yourself from fraudsters in Forex?

How to identify and protect yourself from fraudsters in Forex?

It is true that the law does not prohibit to get income on the financial markets, but this field is full of scammers. It is necessary to know how to recognize fraudulent companies before you become their victim. In this article we want to tell you about some peculiarities of Forex trading and frauds which can be waiting for you in this market.

Is Forex working within the law?

Yes, of course, the law does not prohibit earning income from investments. Depending on your strategy and the market situation you can earn money for a short period as well as for a long time.

Is Forex related to pyramids?

How to identify and protect yourself from fraudsters in Forex?

No, Forex does not prefer to recruit other traders, in order to get commissions. Despite this, we have seen several companies that use similar schemes to the MLM. But it has nothing to do with the classical Forex.

What schemes are used by the swindlers?

Robot trading systems

Most of the systems that use robotized trading are fraudulent; they promise that the client will get a guaranteed income from such trading systems. You are lured by promises that all analysis and complex actions will be done by a robot program. Also, the robot is ready to take over the decision of the sum of opening of the transaction.

Of course, we cannot say that absolutely all robotic systems are the sign of cheaters, the exception is a Forex robot consisting of a network of EAs, which offer algorithmic and code solutions as a technical signal to open a position. Read a lot of reviews before you make your choice. But also, filter the information, knowing that many reviews are paid for the client attracted to robot trading.

Shady Signal Sellers

There are some “sellers of air”, as a rule, these are individuals who claim to possess exclusive information about trades on a particular currency pair. They attract clients by the guarantee of a deal’s success. The signal sellers request a certain amount of money for their help.

Scammers usually collect money and provide information, which is of no value, because they do not have the necessary experience. Often, clients are subscribed to a monthly service. How to protect yourself? The easiest way is to find the profiles of such advisers on the Internet, as a rule there will be a lot of too beautiful reviews.

Scheme with MLM in Forex

How to identify and protect yourself from fraudsters in Forex?

With the advent of MLM in the Forex market, appeared a lot of dubious schemes, such as asking for a monthly fee in exchange for signals, or offering to find additional clients for a generous commission. Some go further and refuse to provide bonuses without information about solvent clients. These forex scams, which are based on MLM, have nothing to do with orex trading.

Do not hesitate to give your finances to these scammers.

Broker fraud

A Forex broker is an intermediary company, which offers you a trading platform for trading operations. Without a broker, it is impossible to conduct operations on the currency market. As a rule, these companies are not regulated by serious organizations and their income depends on a lot of fees. In case of disputes, it will be impossible to go to court.

At the same time, there are quite legitimate companies, which are ready to share their experience, provide signals. Of course, they also charge commissions, but these will be reasonable payments in exchange for service and advice.

Fake Forex Funds

Beware of companies which offer a quick return on investment and a rate of return of 100 percent a month. Do not invest in such offices, save your money, nerves and time. We recommend choosing only reputable funds or indices, as well as a lower degree of risk will ensure copy trading or social trading.

How Not to Become a Victim of Forex Fraud?

How to identify and protect yourself from fraudsters in Forex?

Probably the only thing that will keep you safe is your experience and knowledge in this very Forex market.  Before you invest your money and time, make sure you are familiar with the terminology and basic principles of the market. Don’t be lazy when choosing a broker, this will save you time and money later on.

If you have decided that you want to receive a significant income on the currency market, hire an advisor, who will build a strategy for you, based on your budget and needs. He will also teach you the mechanics of the process.

Do not hurry to send money, first, research reputable sources (Twitter, Reddit) for information about the company you are interested in.

Conclusion

Preparation is very important, the most important thing is to make sure that the broker you choose is regulated, has reviews on well-known sites and reviews on reputable sites.

You should be well aware of all peculiarities of trading on Forex market in order to detect a fraudster. If you are a beginner, ask an advisor who will develop a strategy and train you.

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