How to Avoid Scam & Fraud in Forex Trading

Posted on 21st May 2019
How to Avoid Scam & Fraud in Forex Trading

INTRODUCTION

We are in a phase where the people are gradually trailing towards the world of trading. Already there are many people into forex trading and earning significant profits by following the trading ethics and the procedures. It is easy for you to do trading when you have the experience, and there is no need to get any guidance from anyone, but when you are a beginner it is necessary, and a needed one to have a broker whom you could trust. However, it is challenging in forex to find a trustworthy broker, still possible with the conscientious selection.

FOREX

Forex is a decentralized place to trade currencies. It includes all forms of buying, selling, and exchanging currencies. There are many currency pairs like EURUSD, GBPUSD, AUDUSD, and so on can be traded in the forex trading market. Forex gives you more profit, but it is not a platform which makes you rich in a day. The best way to survive in the forex markets with high profit is by gaining adequate knowledge about the forex trading market.

Let us know how to identify forex scam and how to avoid it.

HOW TO IDENTIFY FOREX SCAM

Forex scammers have a way of approaching people. They always give offers to traders. Scam brokers assure that there are 100% substantial profits without any risk financially. In the history of trading, there is no such thing like 100% profit. Profit and loss depend on the trader and the trading style. The offers might seem to be more attractive and tempting for the beginners who are very eager and willing to earn in a short period; those are the people who fall for the attractive offers.

The other way to identify them is by analyzing their trading history. Most probably, they do not have the history to share. It is one of the methods to find scam brokers.

The scam brokers may ask you to share the personal information like name, phone number, and address. Do not disclose your personal information when they ask for it. Be aware, and instead, you can ask them to bestow a written risk disclosure statement. Traders should always have a background verification of the broker they are approaching.

A real fact which happened in the USA, a kid from Queens, New York, made millions of dollars in trading during his lunch breaks. In reality, he never made any profits, since all his earnings were in paper trading. Be cautious all the time about how you trade in the trading market.

These are the ways a scam broker would approach you in forex. While these incidents are happening in your trading experience, be aware of the scammers'. Let us see the things to be followed to avoid the scam in the forex trading.

WAYS TO AVOID SCAM

Beginners are the people's that the scam brokers targets. As they do not have the experience of trading, they get misled by the brokers. In a beginners perspective, they focus on money instead of learning the forex trading strategies.

It is better to go for the regulated brokers because they have a license and regulatory authority with them. Check for those details about the broker before starting the trade with real money.

Unprofessional emails are another way an online scammer can approach you. Scammers' have thousands of email list, and they do send emails to the traders. Here it is crucial that you should do a background verification regarding any mail you receive.

To check whether they are a scam, check for the review online so that it is easy for you to choose the broker by the credits they have acquired. Do not opt for the broker who does not have good reviews.

Even professional trader faces a lot of ups and downs in trading. Despite, don't believe when someone says that they can give you hundreds of pips with their strategy. It's absolutely a scam and try avoiding it immediately when they approach you.

The best way to avoid the scam is to educate yourself. Though it is not possible to learn to trade entirely without experiencing it, try your level best to gain knowledge from the outside sources by your own, because it is essential to be aware when you are a beginner. At times you are the only guide to uplift yourself, so get a demo account and input the knowledge you gathered.

Finally, trust your intuition always. Usually, we tend to have some thought when we see a person. So when you approach for a broker in forex, talk with them, and trust what your gut feeling says when you are having a conversation with them.

CONCLUSION

Above mentioned are the ways to find forex scammers' and ways to get rid of them. Above all this gather knowledge to survive in forex without facing the scammers'. To be in the safer zone, make sure the details which the broker gives you is all in a written form and not in oral or phone conversations. Trust and rely on regulated brokers who provide low spreads and high leverages.

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