To avoid Forex broker scams, you must understand why scammers are especially interested in the FX market. We can start by saying that the forex market generates more than 6.5 trillion USD every day! Therefore, it is only natural that many scammers seek to get rich by making their customers their priority. It is the biggest hurdle for new traders, which risks ruining them, even before they have started. To protect yourself, we suggest you learn how to recognize the worst Forex broker scams that exist to date and avoid them.
Forex broker scams
If you ask top traders what is most important to succeed on Forex, be sure that choosing a good broker will be the most common answer. It is the thing that could ruin you if you make the wrong choice.
When it comes to broker scams, be aware that there are several levels, and some fall into a gray area. So, to be clear, let’s start with the more obvious scams.
The worst Forex brokers you can open your accounts with are the ones who will prevent you from withdrawing money from your account. These people are definitely fraudsters, and they are still unregulated. Forex fraud of this type is not limited to this practice. Some brokers will even take additional undeclared fees.
At this level, the scam is obvious, and there is not much to discuss. Either way, it’s relatively easy to avoid these kinds of issues, as all you need to do is check (un)regulated brokers lists and read broker reviews. You can also do this by consulting the official regulatory financial agency, which lists are updated continuously containing all the names of unregulated brokers, which have already been involved in fraud cases.
Forex signals scam
The Forex market relies on signals and information that you can buy to predict the movements that currency prices will take. Indeed, it is possible to acquire this data from companies or trading experts called signal dealers.
You can subscribe to these signal dealers weekly, or monthly, in exchange for a commission. Usually, you will find Forex brokers who will offer you these sources to convince you to take a trade. If this happens, you first need to verify the actual performance of these resellers. The safest and most efficient way to do this is simply asking your broker to provide you with the history of the trader in question.
In general, even the best dealers have a complex history, with ups and downs. Therefore, it will not be easy to select the best one.
Forex trading robot scam
The promise that software will take care of your trading is a tempting offer. Since many new traders are already struggling to understand how technical analysis works, they will be happy to skip this phase by handing over the task to their trading bots. Unfortunately, the technical side is not enough to make a good strategy, but beginners usually ignore it.
So, since they don’t know how to choose trading robots, they will use any and Forex scammers will provide them with poorly performing bots, which will have extremely low success rates.
Let’s be clear; it is possible to generate earnings using trading robots. However, it is vital to go to the right brokers. If you select a good Forex broker,follow the trading training.You will learn exactly how to optimize your trading robot’s profitability while limiting the risks as much as possible.
Anyway, jumping unprepared into Forex trading is a losing game. It becomes even worse if you stumble on a scammer. The market is huge and has a big potential to bring you profit. But don’t let your momentary impulse push you into financial issues. After reading reviews and researching the market, and before trading for real money, open a demo account with your chosen Forex broker. Educate yourself, try different strategies and approaches until you get self-confidence and know what you do with your money.