Forex Trading Scams Malaysia: How to Spot Scam Forex Brokers

The number of forex broker scams in Malaysia is staggering. Anytime you search on the internet, you will find many people complaining of losing huge amounts of money online. You can avoid being scammed and make your investment worthwhile on forex trades.

Forex markets are very lucrative. They are currently trading trillions of dollars a day. You can miss such a chance to get your finances going well for you. There are a lot of genuine brokers, and getting them is not a challenging task. For example, CFD and cryptocurrencies are booming, with people chasing lots of money in a single day.

It would be best to determine the legitimacy of a broker before you settle to work with them. As more brokers join, it makes it a huge challenge to get the right broker. Therefore, it would be best to conduct research first and follow the guide to ensure you don‘t lose your hard-earned money to scammers. You don’t have to go through a lot of hassle conducting research. Here is all you need to know.

Why Do Forex Scams Exist？

It takes a person a lot when they meet scam brokers who take their money without any remorse. It is a mind-boggling fact that makes people wonder why scams happen. Firstly, the online world has every character you can ever meet on earth. Some people want to make quick cash and lack solid morals to guide them to earn their money. They wont mind taking it from you.

Such people go through significant lengths and even defraud millions of people for their money. As respectable as you are, they will stop at nothing until they get your money for free. The market is currently trying to start getting regulated. Before, when it had no regulations, anyone could set up as brokers to sell their services.

The scam brokers emulate the honest brokers who set up their schemes to get people who want to work with them. A newcomer to the market may not know and end up being a victim quickly. The rogue brokers have a way to entice traders and make their process seem easy and more lucrative.

Currently, some countries have started registering their brokers, and this may reduce the number of scams. Until they get discovered, it would be best to find a way to stay safe and trade to earn money.

How to Spot Scam Forex Brokers

New investors find it challenging to spot scammers online. With the huge number of brokers online, it is not easy to choose one and work effectively. You need a few skills to help you know the right broker. Now you can spot a scam forex broker in Malaysia easily by following this guide.

1. Check If the Broker Is Regulated

Regulated brokers report back their activities to a governing body. The body is responsible for assessing their actions and allow them to continue operating as they are. Such brokers are not able to scam you. The regulation body ensures every client is satisfied and gets the right services as required.

On the other hand, unregulated brokers are mainly scammers. They report to nobody, and in case they scam you, you wont be able to withdraw the cash used, and you are out of luck. There is little you can do. You may only post a negative review, and they may not have offered a chance to review their services.

You can verify whether a broker is regulated by searching their website. It is posted on the bottom page of the website. If you dont see any place noted as a regulating authority, that is enough evidence to avoid such a broker. A regulated broker wants to ensure their investors have ease of information and get services done quickly. They will show all information in an organized manner.

It would be best to check the trustworthiness of the regulating authority. Some brokers may claim to be regulated, yet those regulating authorities are also not trustworthy and scam. You can check the authorities they have mentioned and see if they are known and popular among traders. Most legitimate authorities are also used with several brokers.

2. Look Out for Offers Such as Profits and Rewards

Most scam brokers claim to offer profits such as $50 a day from a $250 investment. Such too good to be true promises are red flags. You can only agree to offers mode for forex, CFDs, and other options. The brokers have no authority to promise any returns, whether small or large. It is not in their business to offer the kind of profits you are going to make.

Any broker that promises to offer you money is a straight scam, and stay away from them. Some other common scam promotions include showing off expensive cars given to traders who use such brokers to invest. If any of these claims happen, save your money and stay away until you find an honest broker.

3. Check for Cash Bonus Offers When Opening an Account

If you find that a broker is offering cash rewards for opening accounts, you are dealing with a scam if they dont show proof of regulation. Most of the promotional figures are vague, and you should never fall for that. Mostly, promotional bonuses for opening accounts are not legal. So stay away from such brokers too.

4. Beware of Brokers Offering Automatic Trades and Guaranteed Profits

There are online forex scammers who offer automated trading, claiming they are done with robots or set algorithms to raise your money. The trades are instant and will generate money once you invest in them. Most of such brokers deal mainly with cryptocurrencies and other options. These are huge scams, and you will never find your money once you invest with them.

No company has found a way to automate the trading process and earn money for free. If there were, they would also not offer such services free of charge.

5. Check All the Information Offered by the Broker

Honest people have nothing to hide. You can find all about the company history, reviews, address, and headquarters on their website. If your broker lacks credible information, you are dealing with a scammer. Their online information is scanty and doesnt explain their existence.

Scammers cannot provide names and locations of their business in case they end up in trouble. It is, therefore, another essential thing to look for on the website. If there are no honest reviews from former clients, then leave the broker. Brokers who have a huge following and get optimistic feedback from investors are the right way to go.

6. Verify Authenticity of Cited Awards

Awards can be appealing to many people. Scammers use them to attract you to their site only to steal your money easily. Most of these awards posted by scammers are fake. They will put such an award on their site, but they cannot open it for further read. Some posted awards were offered several years before, so that there is no way they can be verified.

Actual awards have links that redirect you to Google and give information on how they were received. If they are not clickable, then the awards are fake. Always double-check any claimed awards if they are legitimate.

Final Thoughts

There are highly reputable legit brokers in Malaysia. WikiFX is the most preferred websites to check your brokers' status, and many people trust their services. They allow easy access to Broker background, Regulatory Status, and brokers' rating/ benchmark on forex trading conditions.

WikiFX is the first global brokerage research application in Malaysia. With massive data inventory of over 28000 brokers and the trust of over 3 million users worldwide. WikiFX also provides unique services to their clients. Users can leave their commons under WikiFX's broker page, if they are being through a scam, report it on WikiFX.

Are you ready to start Forex trading in Malaysia？ Here is how to avoid forex trading scams Malaysia. Dont be put off by these scams, yet you can make lucrative investments with forex markets. Always exercise caution whenever you approach a broker. Do the research and ensure the company is licensed with a known authority.

It is possible to earn money with forex trading, but you have to be patient. Take your time to learn the craft and skills needed. After you have mastered the skills required, you will have the right experience to ensure you make huge investments without any problem.

WikiFX is ready to help you protect your trading effectively. Visit their website or download the APP today and create your free account to check your broker with forex. You can get a lot more information on their website.