There are multiple forex scams to avoid for a safe trading experience. As the biggest financial market, the FX industry is vulnerable to various scams – designed to defraud inexperienced traders. Many scammers set up online brokerages in foreign jurisdictions to steal money without worrying about strict consequences from mainstream regulators.
According to BrokerageToday.com, traders should research thoroughly before joining an online trading platform. If you’re looking to trade forex safely, always find legitimate partners to set up your account. This way, you can protect your accounts from unsuspicious activities and stay safe. Keep reading for various forex trading scams you should avoid to trade safely.
Unregulated Brokerage Platforms
Avoid unregulated brokerage platforms running forex scams to trade safely. Typically, these non-regulated platforms are registered under poorly structured jurisdictions without any strict regulations. Since unregulated brokers are not required to follow a regulatory body, you are always exposed to losing money in various fraud schemes.
Moreover, you are forced to trade without any strict fund protection policies – exposing your deposits to potential losses. To protect yourself from brokerage scams, always join trusted forex brokers holding licenses with the most reputable global jurisdictions – including the FCA, ASIC, and CFTC. Reputable authorities like FCA even respond to all scam queries to keep clients safe. Definitely, watch out for unregulated forex brokers to avoid common trading scams in the industry.
Unreliable Trading Signals
Avoid relying on unreliable trading signals to protect your account from a forex scam. Despite legitimate trading signal providers – you can still fall victim to scammers trying to steal money. To avoid forex signal scams, carefully analyze the accuracy percentage to stay safe.
Ideally, you should avoid service providers promising 90% or above accuracy. Keep in mind even the most skilled profitable traders cannot guarantee such a higher accuracy in unpredictable forex market. Additionally, you should also avoid joining Telegram channels selling unreliable signals without any backtesting. Typically, these scams require you to pay an upfront fee to access signals – which may not even work. Definitely, many forex trading scammers sell unreliable signals to defraud clients.
Portfolio Management Scams
In addition, avoid portfolio management scams in forex to trade safely. Typically, these types of forex frauds are run on Telegram, Facebook, Discord, and other social media channels. You may be contacted by a random social media account promising to manage your forex trading account for higher returns.
Typically, these scammers force traders to register on unregistered platforms and deposit huge initial amounts. Once you make the deposits, the trading prices are manipulated to show major losses – while restricting you from withdrawing any profits. Of course, you can easily avoid these scams by creating accounts with legitimate brokerage platforms. Indeed, many portfolio management companies are only designed to run forex trading scams.
EAs And Trading Bots
EAs and Trading Bots are common forex scams you should avoid to trade safely. Many unreliable Expert Advisors and forex robots often promise huge profits with minimal profits. While you can utilize the automated tools for technical analysis, avoid relying on bots to detect exact price movements.
Once you pay for bots, your positions are likely to underperform in live market conditions – increasing your losses. Instead of relying on false promised, take your time to develop trading skills, risk tolerance, and patience to trade bigger in forex. Certainly, carefully assess Expert Advisors (EAs) and bots to avoid common trading frauds in forex.
Pyramid Schemes
Finally, avoid pyramid schemes in forex to trade safely without losing money to scams. These multi-level marketing (MLM) schemes usually encourage traders to join untrusted platforms in return for fake incentives. Once joined, you’ll need to recruit more people by promising similar incentives, profits, and a huge return potential.
As the pyramid grows, scammers at the top continue to earn commission for every new joining. Keep in mind regulatory authorities always end up seizing these schemes later on, which may put your personal funds at risk as well. Definitely, pyramid schemes are one of the most common forex scams to avoid for a safe trading experience.
There are several forex trading scams you should avoid to stay safe. To trade forex, always choose regulated, trusted, and licensed forex broker in a reputable jurisdictions. Additionally, avoid relying on trading signals, bots, and Expert Advisors to identify exact price movements. You should also watch out for online scammers appearing to be portfolio managers. Finally, stay away from any pyramid schemes in forex to protect your personal funds. Definitely, avoid the above-mentioned FX scams to protect yourself from frauds.
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.