Forex Forum Is the best place to know how you can protect yourself from forex scams.
Forex scammers may come in different forms, but they all share one thing in common: they're non-transparent, unregulated, and promise trading results that sound too good to be true. Beginners may have a hard time identifying these characteristics due to their inexperience, which is the main reason why beginners are often targeted by Forex scammers. As you gain trading experience along the way, it will become significantly easier for you to spot these unethical practices and protect yourself from Forex frauds.
What is a Forex Scam
Foreign Exchange is a legitimate trade that must be regulated like any other. However, because there is no centralized exchange, some take advantage of the situation and perform scams against traders. People who lack basic knowledge and understanding of FX trading can easily fall victims to such scams.Due to the fact that there are daily transactions for huge amounts, and access to the market is available due to the Internet, it is quite natural that the scammers haven't passed it by.
Forex fraud can manifest itself in a variety of forms-from outright deception to non-fulfillment of obligations. If you don't want to become a victim of various schemes and scams, you need to have a good idea of the foreign exchange market, what laws work here, how to protect yourself and your deposit to the maximum, where you can solve conflict situations.
Here are Some Way how you can protect yourself from forex scam:
1. Reviews of Past ClientsMost of the information presented to you by the broker or a salesperson offering some Forex-related products will always appear reliable and the best. It is part of their marketing, to make their product and services appear one-of-a-kind.
But, it won't hurt you if you seek other's thoughts before you commit and pay something for it. Otherwise, you will fall prey to scammers and lose money even before you start trading.
2. Scammer Hide their Information
Scammers claim that their offices and operations are based in countries with well know established financial regulatory agencies such as the CySEC to lure customers in investing their funds in a European forex broker. These companies usually do not have a license and are not registered with any regulatory agency. They tend to operate internationally and therefore lost funds usually travel through different jurisdictions making it difficult for investors to trace or claim their lost funds.
3. Social media adverts:
A growing number of scammers are using social media to advertise fraudulent investment opportunities. They often use images and videos of luxury items to trick people into making an investment.
4. Red Flag Checklist (check it before invest)
*. Unbelievably high-profit claims
*. No availability of live trading data only shows historical data
*. No previous performance information
*. Asking huge investment money or fees
*. Unbelievably high win/loss ratio
*. Poor reviews from previous clients
*. Claims to have a secret formula in trading
*. Overseas headquarters, particularly in an unregulated country
5. Don't send your personal data
Never give out your personal information! Scammers may use it to steal your identity and to attract new victims under your name. Always ask yourself – why do they need my personal information? If there is no obvious answer to this question, don't send any personal data and stop wasting your time with the company. It's very important to know how to protect your personal information. Regulated companies have to store all of their clients' personal information, such as ID cards and passport copies, in a safe place and can only use the data for their internal procedures.
So remember, forex scams DO exist.
Be wary of them and hold onto your hard earned money.
The good news is that there ARE legitimate forex companies out there.
Make sure you do thorough research on a company if you are thinking about giving them a shot.
Ask other forex traders on the forex forums if they've had experiences with them.
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