In forex trading, just like any other business, there are going to be various brokers that will scam you for your money. Some companies will try to scam you just to get spot-on signals. In this article, we are going to address how to identify forex scams.
Trading companies
In the forex trading industry, there exist companies that will require you to pay a monthly fee just to get into what they are trading on and what their market signals are. In paper this sounds enticing, especially if you want an easy win in the market and you don’t have the time to learn it. This is actually a great idea to pay just to earn. However, the market doesn’t always ensure you a win. Nobody owns the market as the market is free following that is full of investors and banks. No trading company owns the market. In fact, what they can do is something you can also do. It’s much better to learn forex trading on your own than to lay back and just pay people to get into the market without the assurance of you earning the money that you needed. If you lost, then that’s your loss. They wouldn’t be accountable for that loss. After that, you would still pay for the monthly fee. Learning how forex works is never hard as you just need to invest your time and energy in learning it. Various YouTube videos teach the basics of forex trading, from how to draw a standard support and resistance to understanding price action. There are also YouTube videos that teach you how to use the Fibonacci retracement tool, the moving average indicator, and much more. Instead of getting into a trading company, it’s more recommendable to enroll yourself into a forex course. There are a lot of forex courses that will teach you what you need to know, right from the basics to in-depth technical analysis.
Brokers
There are a lot of brokers that will scam you for your money. That’s why there are two terms we use to distinguish the legit and the not-so-likely legit. These terms are the regulated brokers and unregulated brokers. Regulated brokers are the ones that follow strict rules in forex trading. They can’t manipulate your position in the trades and they can’t take your profits from you. On the other hand, an unregulated broker is quite the opposite. I’m not pertaining to the majority of unregulated brokers as some unregulated brokers are legit. However, for the safety of all traders, having an unregulated broker will hurt you in the long run. Some unregulated brokers will run away from your money and just literally ban you from their site. You cannot sue them for fraud, you cannot chase after them, and there will be nothing that you can do to get your hard-earned money. There are also fraud brokers that will manipulate the spread of the currency and they can also manipulate your positions in the market according to their will. With all this being said, it’s much better to shy away from unregulated brokers. For someone who’s interested to try forex trading, being with an unregulated broker will help you to understand forex trading for unregulated brokers usually offer small deposits around $10-$50. Use this advantage to focus on your craft and get better in trading. Once you get your craft chiseled and done, jump into the big boys, go to a best regulated forex broker, and work your way from there.
Trading robots
Certain companies sell trading bots and they usually ensure the potential buyer a huge amount of profit if they use it. If you see this, turn the other cheek and just walk away. Again, in forex trading, nobody- not even yourself- can ensure 100% profitability. Even the most experienced forex traders that have been trading all his life lose. It’s best to shy away from this as there are no shortcuts in forex. If you want to profit from forex, you need to understand how it works and learn the basics of it.
In conclusion to this, there are a lot of forex scams that we didn’t even mention above. However, these are the most commonly known forex scams throughout the world.