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Forex Fraud Very Harmful For Forex Traders, How To Protect Yourself From Forex Fraud?

somrat4030

Well-known member

Learn how to protect yourself from forex fraud and scams, with Forex Forum.​


how to protect yourself from forex fraud and scams

When you enter the world of Forex trading, you will realize that there are as many Forex scams as there are legitimate opportunities to earn big and become successful. You have to learn how to protect.

When you enter the world of Forex trading, you will realize that there are as many Forex scams as there are legitimate opportunities to earn big and become successful. You have to learn how to protect yourself from these scams.

Most of the Forex scams occur and involve the desire of the people to avail of a good system that will automate the trading process and make things easier and convenient for them to earn profits. But there are also many people who see this as a lucrative way to stash money from others.

WHAT IS FOREIGN EXCHANGE FRAUD?​

Foreign exchange fraud, sometimes known as forex trading fraud, is the use of any kind of trading scheme to defraud currency traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market.

How Forex (FX) trading and brokerage scams work
Most consumers report they have initially received some returns from the firm to give the impression that their trading has been a success.

They will then be encouraged to invest more money but at this stage or soon after the returns stop, their account is suspended and there's no further contact with the firm.

Many scam firms claim to be based in the UK and even claim to be FCA authorized.

Main types of forex scam​

New ways are being invented all the time of how to defraud people in forex scams and other money scams. But there are four main types in the forex market: Pyramid schemes, ponzi schemes, forex robot scams and forex signal scams.

1. Forex Pyramid Scheme
Pyramid schemes earn money by recruiting new paying members of the scheme. The owner of the forex pyramid scheme does not make money by trading forex by rather from the fees that new forex investors pay to join the scheme. It is called a pyramid because this second layer of recruits to the scheme will then hire even more new recruits for a third layer of investors.

2. Forex Ponzi scheme
Ponzi schemes are basically fake investment management companies. Instead of people paying a fee like in a Pyramid scheme, people will invest their money into the scheme. The owner of the scheme will entice investors to invest with a forex guru of some kind, typically a called a 'forex money manager'.

3. Forex robot scam
A forex robot is a computer algorithm programmed to place trades in the forex market. The most popular forex robot trading platform is Metatrader, where the robots are called EAs (short for Electronic Advisors). Again, there are legitimate forex robots that make money as well as forex robots that were made with the best intentions by their creators but that just do not make money.

4. Forex signal scams
Forex signals services are a subscription to receive buy and sell alerts in the forex market. The basis for this scam is almost identical to the forex robot scam, except instead of paying a one-off fee to buy the robot, signal services offer subscription service to receive the buy and sell alerts. Like with robots, there are real forex signal services that provide a useful service but normally they require some discretion from the buyer.

How to Protect Yourself Against Forex Broker Scams

How to Protect Yourself Against Forex Broker Scams​

Scams come in all shapes and sizes. From Fineco's perspective, we see UK consumers increasingly targeted by unauthorised brokerage firms, offering the chance to trade in foreign exchange (forex), contracts for difference (CFDs), commodities or, more recently, cryptocurrencies. Investors need to keep their wits about them to avoid these forex or trading scams.

These fake brokers have a number of elements in common: they will promise high returns or guaranteed profits. They may offer a trading service, or a managed service, where they place the trades on the investor's behalf. Clients are encouraged to invest more and more (and may do so successfully at first), at which point the brokerage shuts and disappears with the investor's cash.

Here are some tips for you, how you can protect yourself from forex fraud and broker scams:

1. Compare Price Feeds


Imagine a horse with blinders. This horse's vision is limited to what's in front of him.

If there is a hurdle in front, this horse has no other choice but to exert the additional effort needed to jump over it. This horse is a very sad horse.

If you only use the price feed on your trading platform, you are basically trading like a horse with blinders on.

You have no idea what's going on in the rest of the forex world because you have limited yourself to your broker's price feed.

2. Scammers can use fake adverts and cloned websites with familiar brands

The advent of social media has given criminals a new route to target consumers. They will use brand names to direct consumers to cloned websites that may look similar to those of legitimate financial firms. Social media companies have taken steps to identify those adverts that constitute a 'financial promotion' under the FCA rules and are now obliged to check if the underlying firm is FCA approved. Even so, investors can keep themselves safe by treating any of these promotions with real caution.

3. Record Everything

Keep a comprehensive journal of all of your transactions at all times! Still, always, To make an argument, you'll need witnesses, just as in a trial. You might FEEL robbed, but if you don't have anything to back it up, it'll just be a feeling.

The easiest way to keep records is to take a screenshot of each order you put, each trade you take, and other suspicious broker activity like odd price feeds.

4. Take your time and do your research to find a real investment manager or good forex signal service or profitable forex robot.


5. Learn to trade yourself, this takes time and energy and success is not guaranteed but it is the surest way to avoid being scammed.

6. Good Trading Habits

Like a disciplined nun who wears a habit, you too should develop good trading habits. We know that joke doesn't make sense, but it sounded funny so we might as well put it here.

In any case, even with the proper weapons to protect yourself against evil brokers, the most important thing is still to become a better trader.

7. Is the broker offering a cash bonus for opening an account?

When a broker offers an abnormally high cash bonus, is not regulated, and does not show offer details for the bonus, then you are likely dealing with a scam broker. For example, 1000Extra hints at a bonus of $1,000 with their vague promotional offer. If you click around trying to gather more information you are redirected to sign up for an account.

8. Check real review at Forex Forum

You can join a forex forum for checking broker's real reviews for avoiding scams. Because, inside a forex forum, many forex traders use different different brokers. So, experts know which is good brokers and which are not. So, inside a forex forum, you can get the proper forex brokers reviews. Moreover, inside a forex forum you can learn more about forex trading freely. Experts share their valuable tips and ideas with other traders. So, Forex forum is one of the best ways for knowing the proper reviews about a broker.

For learn more about forex brokers and how to protect yourself from forex scams, you should join this forex forum.

You can learn more about forex trading at the forum.forex

This is the forex forum for beginners and professional currency market traders. Discuss and share forex trading tactics, currency pairs, tips and forex market data. Analyze forex brokers, leverage and fx signals providers.

Thank You


#forexforum #forextradingforum #forexsignalforum #currencytradingtips #forextradingtips #fxforum #Topforexforum #bestforexforum #fxtrading #forumforex #currencytradingforum #currencytradersforum #forextrading #currencytrading #forumdotforex #forexnews #howtomakemoneytradingforex #trading #currencyanalysis #forexsignalproviders #forexnewstoday #forexstrategy #forexindicators
#forexforum #forextradingforum #forexsignalforum #currencytradingtips #forextradingtips #fxforum #Topforexforum #bestforexforum #fxtrading #forumforex #currencytradingforum #currencytradersforum #forextrading #currencytrading #forumdotforex #forexnews #howtomakemoneytradingforex #trading #currencyanalysis #forexsignalproviders #forexnewstoday #forexstrategy #forexindicators
 

Polakandil

Well-known member
Forex business is a worldwide business, this is a global financial trading market, in the gigantic market like as forex, there are so many scammers that wants to trap especially new trader that still lacks in experience in forex business, indeed forex business can make any trader become rich, but also possible make people become bankrupt because losing money, if losing money because bad trading skill is a common thing, but losing money because scammer it more painful. Following the useful tips above could reduce the risk of falling into a trap from scammers.
 

GlenWest

Active member
Those who see forex trading as an easy way of making money need to read this and know what reality looks like. If all you know is that forex trading offers many money-making opportunities and nothing more, your forex career is at risk. Try not to look for “get rich quick” offers and protect your money.
 

Paulsy

Well-known member
It is a risky practice to make a deal with a Forex broker solely based on the attractiveness of their website without considering their legality and legitimacy. To avoid forex scams, it is advisable to read their website carefully and check out their reviews in order to make sure the broker is legit.
 

catherinacrowley

Active member
Scams are very common and traders get scammed because of lack of education. Stay away from fake groups and signal providers. Think twice before signing up for anything.
 

WalletInvestor

Well-known member
This is a great summary. Spotting and avoiding potential scams is a very important skill to learn if we want to dabble in financial markets. There are two other common scams I have seen around the internet:
  • Account manager scams: there are people who reach out to traders, especially on Telegram and WhatsApp saying that if you give them X amount of money, they will trade for you and get a certain % of returns in a few weeks or so. Then they just make excuses and leave with your money.
  • Recovery room scams: these tell you they can recover your money by hacking if you have been previously scammed. Then they just ask you for payments. This is one of the worst ones since they prey on people who are upset and vulnerable due to already having lost money.
 

louisegoodman

Well-known member
Nowadays, the forex market has been flooded by fraudsters that have been tricking novices into scams. In order to protect yourself from these scams always check:

The authenticity of a system you are planning to use

Stay away from flashy sites claiming realistic profits

Avoid sites asking for immediate payments for investment.
 

Linsang

Active member
Forex frauds are very common these days. In order to protect your hard-earned money, it is very important to keep an eye on a number of factors such as:

Avoid flashy sites offering unrealistic promises

Avoid forex management funds

Always check the reviews of the company or broker you intend to trade with.
 

timothydanie

Active member
Thank You for sharing this worthy post. According to me it is very important for traders to have proper awareness and knowledge about the market they are trading.
 

Paulsy

Well-known member

Learn how to protect yourself from forex fraud and scams, with Forex Forum.​



When you enter the world of Forex trading, you will realize that there are as many Forex scams as there are legitimate opportunities to earn big and become successful. You have to learn how to protect.

When you enter the world of Forex trading, you will realize that there are as many Forex scams as there are legitimate opportunities to earn big and become successful. You have to learn how to protect yourself from these scams.

Most of the Forex scams occur and involve the desire of the people to avail of a good system that will automate the trading process and make things easier and convenient for them to earn profits. But there are also many people who see this as a lucrative way to stash money from others.

WHAT IS FOREIGN EXCHANGE FRAUD?​

Foreign exchange fraud, sometimes known as forex trading fraud, is the use of any kind of trading scheme to defraud currency traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market.

How Forex (FX) trading and brokerage scams work
Most consumers report they have initially received some returns from the firm to give the impression that their trading has been a success.

They will then be encouraged to invest more money but at this stage or soon after the returns stop, their account is suspended and there's no further contact with the firm.

Many scam firms claim to be based in the UK and even claim to be FCA authorized.

Main types of forex scam​

New ways are being invented all the time of how to defraud people in forex scams and other money scams. But there are four main types in the forex market: Pyramid schemes, ponzi schemes, forex robot scams and forex signal scams.

1. Forex Pyramid Scheme
Pyramid schemes earn money by recruiting new paying members of the scheme. The owner of the forex pyramid scheme does not make money by trading forex by rather from the fees that new forex investors pay to join the scheme. It is called a pyramid because this second layer of recruits to the scheme will then hire even more new recruits for a third layer of investors.

2. Forex Ponzi scheme
Ponzi schemes are basically fake investment management companies. Instead of people paying a fee like in a Pyramid scheme, people will invest their money into the scheme. The owner of the scheme will entice investors to invest with a forex guru of some kind, typically a called a 'forex money manager'.

3. Forex robot scam
A forex robot is a computer algorithm programmed to place trades in the forex market. The most popular forex robot trading platform is Metatrader, where the robots are called EAs (short for Electronic Advisors). Again, there are legitimate forex robots that make money as well as forex robots that were made with the best intentions by their creators but that just do not make money.

4. Forex signal scams
Forex signals services are a subscription to receive buy and sell alerts in the forex market. The basis for this scam is almost identical to the forex robot scam, except instead of paying a one-off fee to buy the robot, signal services offer subscription service to receive the buy and sell alerts. Like with robots, there are real forex signal services that provide a useful service but normally they require some discretion from the buyer.


How to Protect Yourself Against Forex Broker Scams​

Scams come in all shapes and sizes. From Fineco's perspective, we see UK consumers increasingly targeted by unauthorised brokerage firms, offering the chance to trade in foreign exchange (forex), contracts for difference (CFDs), commodities or, more recently, cryptocurrencies. Investors need to keep their wits about them to avoid these forex or trading scams.

These fake brokers have a number of elements in common: they will promise high returns or guaranteed profits. They may offer a trading service, or a managed service, where they place the trades on the investor's behalf. Clients are encouraged to invest more and more (and may do so successfully at first), at which point the brokerage shuts and disappears with the investor's cash.

Here are some tips for you, how you can protect yourself from forex fraud and broker scams:

1. Compare Price Feeds


Imagine a horse with blinders. This horse's vision is limited to what's in front of him.

If there is a hurdle in front, this horse has no other choice but to exert the additional effort needed to jump over it. This horse is a very sad horse.

If you only use the price feed on your trading platform, you are basically trading like a horse with blinders on.

You have no idea what's going on in the rest of the forex world because you have limited yourself to your broker's price feed.

2. Scammers can use fake adverts and cloned websites with familiar brands

The advent of social media has given criminals a new route to target consumers. They will use brand names to direct consumers to cloned websites that may look similar to those of legitimate financial firms. Social media companies have taken steps to identify those adverts that constitute a 'financial promotion' under the FCA rules and are now obliged to check if the underlying firm is FCA approved. Even so, investors can keep themselves safe by treating any of these promotions with real caution.

3. Record Everything

Keep a comprehensive journal of all of your transactions at all times! Still, always, To make an argument, you'll need witnesses, just as in a trial. You might FEEL robbed, but if you don't have anything to back it up, it'll just be a feeling.

The easiest way to keep records is to take a screenshot of each order you put, each trade you take, and other suspicious broker activity like odd price feeds.

4. Take your time and do your research to find a real investment manager or good forex signal service or profitable forex robot.


5. Learn to trade yourself, this takes time and energy and success is not guaranteed but it is the surest way to avoid being scammed.

6. Good Trading Habits

Like a disciplined nun who wears a habit, you too should develop good trading habits. We know that joke doesn't make sense, but it sounded funny so we might as well put it here.

In any case, even with the proper weapons to protect yourself against evil brokers, the most important thing is still to become a better trader.

7. Is the broker offering a cash bonus for opening an account?

When a broker offers an abnormally high cash bonus, is not regulated, and does not show offer details for the bonus, then you are likely dealing with a scam broker. For example, 1000Extra hints at a bonus of $1,000 with their vague promotional offer. If you click around trying to gather more information you are redirected to sign up for an account.

8. Check real review at Forex Forum

You can join a forex forum for checking broker's real reviews for avoiding scams. Because, inside a forex forum, many forex traders use different different brokers. So, experts know which is good brokers and which are not. So, inside a forex forum, you can get the proper forex brokers reviews. Moreover, inside a forex forum you can learn more about forex trading freely. Experts share their valuable tips and ideas with other traders. So, Forex forum is one of the best ways for knowing the proper reviews about a broker.

For learn more about forex brokers and how to protect yourself from forex scams, you should join this forex forum.

You can learn more about forex trading at the forum.forex

This is the forex forum for beginners and professional currency market traders. Discuss and share forex trading tactics, currency pairs, tips and forex market data. Analyze forex brokers, leverage and fx signals providers.

Thank You


#forexforum #forextradingforum #forexsignalforum #currencytradingtips #forextradingtips #fxforum #Topforexforum #bestforexforum #fxtrading #forumforex #currencytradingforum #currencytradersforum #forextrading #currencytrading #forumdotforex #forexnews #howtomakemoneytradingforex #trading #currencyanalysis #forexsignalproviders #forexnewstoday #forexstrategy #forexindicators
#forexforum #forextradingforum #forexsignalforum #currencytradingtips #forextradingtips #fxforum #Topforexforum #bestforexforum #fxtrading #forumforex #currencytradingforum #currencytradersforum #forextrading #currencytrading #forumdotforex #forexnews #howtomakemoneytradingforex #trading #currencyanalysis #forexsignalproviders #forexnewstoday #forexstrategy #forexindicators
It is a risky task to invest a large sum of money in the first trade with a new broker. You can start with a Demo account or start investing less with a CENT account to check the legibility of the broker. While the broker seems legit, you can then move forward with investing more money for greater returns.
 

Profesor Pips

Well-known member
Newbies looking for scam by looking super hyper mega results for free or minimum price ( 50 - 100 USD ). Currently, it is easy to sell "$hit in nice package" instead of good strategy, I know that from experience.
 

jeanpatterson

Active member
Traders fall prey to scams because they are too eager to make money. If they can control their greed, they can easily stop being victims of scams.
 

Polakandil

Well-known member
Newbies looking for scam by looking super hyper mega results for free or minimum price ( 50 - 100 USD ). Currently, it is easy to sell "$hit in nice package" instead of good strategy, I know that from experience.
Just like high yield investment programs, many seller software stand for forex with a goal to make money from selling products and not actually make money from trading software, I think better learn standalone and not look for shortcut success in forex business, all need process, but indeed the experience is the best teacher for us, we get more understand because involved in it.
 

MarnieLarge

Active member
A lucrative field like forex trading won’t just attract genuine traders but lots of bad elements as well. Forex frauds happen with those people who wish to become rich overnight, without doing any hard work. Forex trading requires knowledge and practice, plus there is no shortcut in forex trading. If you come across one, then it will most likely be a scam.
 
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