The biggest Forex fraud and scams and how to avoid them

2 min read

The Forex market is among the most active trading markets in the world. Participants are ranging from multinational corporations, to large banks, to speculators, to governments and small fraction of individual professional traders. Even more so than other markets, investing in Forex can be very profitable.  However, there is a risk involved in these investments but we’re not talking about normal risk in any type of investment. We’re talking about Forex scams, where the investment is simply an outright case of fraud. We all can find on internet how individual traders complain through forums about how their brokers screwed them.

The forex market involves very active trading of over $1 trillion each day. Futures and currency options put the trading at closer to $5 trillion daily.

There are a lot of opportunities for many forex scams over promises of quick fortunes through “secret trading formulas” or algorithm-based “proprietary” trading methodologies.

Be extremely careful in these cases

Signal sellers make a good example. One of the challenges a novice forex investor faces is determining which operators to trust in the forex market and which to avoid. Signal seller is offering a system that purports to identify favorable times for buying or selling a currency pair. They all claim they want to provide information that leads to favorable trading opportunities. But Signal sellers usually charge a daily, weekly or monthly fee for their services.

How does a typical Forex fraud work?

Scammer gains the trust of his/her victims with a promise of a great and quick profit. Indeed, it’s possible to make a big profit by trading on the Forex market, but not in the way that the fraudster promise. The scammer takes money from the client (actually the victim) and claims that he/she will earn big profits by trading currencies on Forex. In the beginning, the profit is big. But this profit was not realized by scammer’s trading on Forex. Scammer use the money of newer customers to pay  promised earnings to previous clients.

But, victims of fraud, thrilled with good earnings, often decide to invest even more money with the fraudsters. In addition, they often recommend a good opportunity to earn money for their friends so that the network of clients is rapidly increasing. The scam ends after the inflow of new customers ceases to exist or be diminished to the extent that the fraudster is no longer able to pay good earnings to older clients. Then the victims realize that they were deceived and that had lost everything they had invested.

How to identify Forex fraud?

The easiest way to identify a fraudster is if he/she requires from a client to deposit money in cash, bypassing payments through the bank. Real Forex brokers work solely payments through banks. Real Forex brokers provide customers with access to the market where the client decides which currency to buy or sell, depending on which trading result is. Additionally, every client at any time of the day or night can access to account and can  track the status of his account in real time.

How to avoid Forex scam

Since you are into currency trading to make money, you must know how to avoid Forex scam. The information here will help you a lot on how to avoid Forex scam.

Whenever you are dealing with any site, don’t trade with websites that tell you that Forex trading is easy. The scammers capitalize on the human nature of wanting things quick, easy and convenient. Method to avoid Forex scam is for you to keep away from any website that claims to have a secret trading system. Don’t ever fall prey to these lame offers. A lot of Forex traders believe the fact that there is a holy grail or secret trading method that will make profit for them overnight. Reading reviews of professionals will help you determine the broker that fits your specific Forex requirements and those that may fall short as well as save you from scam. The truth is that you need a lot of hard work and patience to succeed in Forex trading.

A lie or a truth about Forex?

If you’ve ever searched by some browser for a word “Forex”, you weren’t surprised that some sites write about Forex fraud, often placed on the first page. You will find that Forex is a big fraud and legalized robbery. The “big”, that is brokers and large financial institutions, have teamed up to take the money from the “little ones”, that is ourselves.

We can completely calmly say that Forex is no fraud and it will never be.

So, the Forex market is really great as potential for earning. Forex trading is real, and Forex at itself is not scam. People are something else. Some people will always find a way to cheat, deceive, dupe, swindle. That’s the nature of human being.

That still does not mean the Forex are scam, not at all. Everyone should be on the lookout for any potential on Forex and invest their money wisely.

eToro and WYT are now offering a 100,000 practice account. You can test your skills for FREE, and get to know the financial field, no strings attached! Click here to get access to your free practice account.

If you have personal experience, share it with us and others.

Risk Disclosure (read carefully!)

 

Subscribe to our newsletter
Don't miss any news and tutorial about cryptocurencies, investments and markets.

Leave a Reply

Your email address will not be published. Required fields are marked *