Forex Trading Scams
Investing is one of the best ways to make money without having to take an additional job or finding another income stream. However, it’s important to make a distinction between investing as a sensible way to grow your funds and a get rich quick scheme or a forex trading scam.
It’s important to approach investing with financial awareness. This means taking care of debts, researching legitimate and licensed brokers and knowing what kind of returns are reasonable to expect.
Taking these steps will help you avoid forex trading scams. These frauds target desperate people who want to make a lot of money quickly. They may be in debt, out of work and may be counting on miracles. Going into investing informed and not desperate is one of the best weapons against forex trading scams.
Is Forex a Scam?
Although crypto scams are now stealing a lot of attention from forex frauds, fake brokers and false forex trading apps are still robbing people of millions each year. Forex is used so often in the context of fraud that people often make the mistake of thinking that forex is inherently fraudulent.
This is far from the case. There isn’t anything in the simple definition of forex that implicates it in illegal activity. Forex simply means trading foreign currency pairs. This means predicting which type of currency will flourish and which will decline in value.
Legitimate and licensed brokers often offer forex trading along with investment in stocks, commodities and precious metals.
However, there are far more forex trading scams than there are legitimate forex brokers. It’s important to look carefully at any trading opportunity to determin whether it’s legitimate or a forex trading scam.
How Forex Trading Scams Work
The names, logos, and websites may be different but forex trading scams tend to work the same way. The fake broker may aggressively recruit potential clients by Whatsapp or email spam or by luring people in on social media and promising a trading deal that can’t be missed.
These fake brokers will drum up hype and make people think that if they miss this one chance to make money, they’ll regret it the rest of their lives. They appeal to emotions and will often target people who are in debt or don’t have jobs. These unlicensed brokers will claim that people can quit their day jobs and mak a living with forex trading.
Although these brokers did a lot of talking to recruit new clients, they may fall silent regarding details of how the trading actually works. They offer vague terms and conditions, little transparency into who they really are and sparse contact information.
The one thing these brokers will do is encourage clients to make additional deposits. They may even show fake returns to get clients to put more money in their accounts. Then, one day, the forex trading scam broker will not allow them to withdraw money. The broker may disappear with the customer’s money.
Signs of a Forex Trading Scam
The following are signs of a forex trading scam:
- No license or a third-rate license
- No transparency
- No contact information
- High fees and leverage
- Fake bonuses
- False guarantees
- Warnings from regulators
- Won’t allow withdrawals.
Have You Lost Money to a Broker Scam? Talk to Us?
Broker Dispute professionals are the people to contact if you suspect you’re dealing with a scam broker or another type of fraud. We have the expertise and the technical solution to unmask information about crypto scams. We will launch an investigation and create a report that will boost your claim and assist you with fund recovery.