Forex trading is not a scam in itself. It is a legitimate way to make money. And Forex has grown in popularity in recent years. And with popularity comes crime in the form of scams concerning trading. In addition, the Forex market is decentralized, which means that no institution is in charge of it. Which, ironically, is the same reason scams occur.
Although some Financial Firms can assist you in recovering your funds, it is a good idea to be aware of the hazards and recognize forex scams before becoming a victim.
Below are some ways for recognizing forex scams even from afar:
Unsolicited calls and emails
You are contacted by a forex broker either via a call or an email out of the blue. They tell you that they want to assist you in forex trading. During such times it’s better to inquire about said broker through your contacts and acquaintances and proceed with caution.
Too good to be true
As an investor, you must ask yourself one fundamental question: if someone or an organization claims to be able to double your money in a week or month, shouldn’t everyone by now be a millionaire? If such profitable possibilities existed, most savvy investors would have already taken advantage of them rather than selling them. So begin by logically considering whether such services that promise to quadruple your money, really exists or not. Also, know that it is easy to get forex scam money back with the help of the recently established fund recovery firms. These companies have professionals that are well-trained and experienced in situations like this. The information you provide to them, such as the scammer’s name and any other information you can provide, will help them locate the scammer and return your funds.
Assume you’ve received a call about a forex trading opportunity. Before you agree to anything, you should always do your homework. Look up the person or firm they claim to be representing, for instance. See whether they have a website or any other personal information. Unfortunately, many forex trading scammers appear legitimate, and they may even have a website. First, however, see if their contact information is publicly available. They frequently do not want you to reach them; thus, their data will be incorrect. There could, for example, be merely a cell phone number and no address.
Almost every organization or broker will have solid statistics to back up their claims. If a plan claims to offer 100% returns with no risk, it will have all the evidence to back it up. Profit charts are pretty easily obtainable on the internet. Scammers are clever, and they will only display profitability and growth rather than losses. They may even provide charts from demo trading accounts that do not reflect real-world trading in the worst-case situation. Do not make a business decision or purchase a product solely on this or any scant knowledge. If they don’t have any information or data on who the owners are, it’s more likely to be a scam than a natural result of their schemes or broker. If they deny or stay ambiguous, it’s almost certainly a con.
Every broker must have a license and mention the registration details on their website. So make sure you check for their website and these details thoroughly. But, of course, there are chances that they can be fake too. So, in these cases, make sure you check for the broker on the Securities and Future Commission (SFC) website.
Scammers utilize long “terms and conditions” and “risk disclosures” contracts to their benefit. The importance of these agreements is that they are legally valid. Each section may conceal issues for the investor, forcing them to seek alternate means of recovering trading losses.
Aggressive and Pushy
Nobody should be extremely forceful or aggressive with you when you’re looking into trading forex. If this is the case, something is amiss, and they urge you to accept their offer right away. On the other hand, be wary of anyone who tries to persuade you to make rash judgments. They don’t want you to stop and consider what you’re doing. As a result, take your time before making any decisions on forex trading. This is particularly true if you are a novice to trading in this manner. When in doubt, always come down on the side of caution.
Forex trading profits are not guaranteed. Gains and losses will both occur. For a trader, this is a common event. On the other side, defrauding individuals in the name of Forex is a SCAM! Outside, a gang of thieves allegedly planning to steal people’s money. They use a range of tactics to attain this, so to avoid becoming victims of such scams, our job is to be vigilant, aware, and educated. Scammers’ boasts of significant earnings in a matter of hours are nothing more than lies. Therefore, it is wise to refrain from engaging in such activities. Also, keep in mind that you should only trade with money you can afford to lose.