How to Identify and Avoid Forex Scams

Do you know the forex market is the largest financial market in the world, with over $5 trillion traded every single day？ At the click of a button you can instantly trade on hundreds currencies, including the US dollar, Euro, British pound, Japanese Yen, etc.

However, while the financial gains of trading the Forex market seem lucrative, it cannot considered easy. There are many unscrupulous people who will try to scam individuals through Forex trading scams. Scammers are always somewhere nearby, trying to steal your money.

Forex scams often pitch “too-good-to-be-true investment opportunities” as a way of convincing you to part with your money. When you lack trading experience, swindlers will try to exploit your optimism, your fears and your lack of knowledge.

How to Identify a Scam

The most important giveaway of a Forex scammer is a guarantee of unusually large profits with little or no financial risk. Some of these offers may sound very attractive, especially to beginner traders. But if something sounds too good to be true, it probably is.

Three Major Types of Forex Scams to Avoid

1) Robot Scams

A Forex robot is a trading program which uses algorithms, or lines of computer code, as technical signals to open and close trades. Not all Forex robots are scams. For example, Forex robots can be built using Expert Advisors (EAs) within the popular MetaTrader suite of trading platforms.

2) Signal Seller Scams

Forex signal sellers are individuals who send out trade ideas which usually include a currency pair, direction, entry price, stop loss and target levels. Some signal sellers offer you trading signals, but only if you sign up with a specific broker. This means they may be getting a kickback from the broker, so are motivated to send you any trades for you to take regardless if they win or lose. Having said this, there are some that will want to keep you profitable so they can continue to receive their kickbacks from the broker, which acts as their payment for the service.

3) Phony Trading Investment Scams

There are many adverts nowadays promoting phony forex trading investment scams and fake forex investment funds. In essence, a slick marketing message or salesperson will sell you on the phantom, or unverified results, of their forex fund. All you need to do is send them your investment and you can sit back and enjoy the returns. Of course, many people who send their money never see it again. The company says they have never heard of you and have not received any funds from you.

How to Avoid Scams

Finding a reliable Forex broker is not an easy task. The first step you should take when you come across a Forex broker is to search their business name and look for user reviews on reputable websites. If they are complained by many users, you should be alert! Additionally, you can browse through regulation status and see if a Forex broker is as reliable as claimed.

For example, you can visit https://bit.ly/wikifxIN to see whether there are any complaints about fund withdrawals, and if so, contact WikiFX to ask for more details. A proper background check will minimise your risks.

As a leading forex media, WikiFX has recorded detailed profiles of over 24,000 forex brokers, which are all compiled from objective data of authoritative sources. Investors can review and compare the best forex brokers on the WikiFX APP. Also, with the support of WikiFX, investors can complain scam brokers on the exposure channel in order to recover the lost fund. Meanwhile, WikiFX offers investors a wide range of industry dynamics and market trend analysis, you can download the WikiFX APP for more information:

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