Forex trading scams are all too common, especially since so many investors are drawn to the huge profits that these platforms can offer. The appeal of trading forex for small stakes has attracted scores of would-be investors, many of whom are eager to get started. Yet they quickly fall in love with forex trading platforms without ever considering how they will actually use them. In this article, we’ll take a look at how to report forex scams in 2021.
Forex scams are usually when forex trading scams are committed by criminals or by individuals acting in conjunction with another group. They are designed to take advantage of other traders, to foreclose their investments in the forex market, and to run away with their ill-gotten gains. There are forex market Scams of all kinds, including those that involve the use of teller machines. Let’s take a look at how to report forex trading scams in the 21st century:
Forex signal selling is one type of trading scam that works by enticing you into a demo account. You’re told that you can begin trading profitably right away – that you’re going to be making big bucks by purchasing a signal service. But after you’ve made the deposit, you discover that there’s no trading signal service whatsoever. And you lose all your money.
Other forex trading scams work in much the same way. You’re invited to sign up for a free service, and given a fake ID and password to use on a real account. Once you have access, the broker then tells you that you have a signal, but it’s not actually from a real profitable broker. So what you’re told is that if you follow the advice – and do not lose your money – you’ll be able to triple your investment in minutes.
Another common scam is the so-called “traders union”. This is an informal group of brokers and traders who work together. They’re supposed to consult each other on which online forex broker to recommend to new clients. In fact, the “trades” that they’re referring to in this connection aren’t real trades in the traditional sense. They’re just set-ups – fake accounts which get filled with fake money to cover up for real losses.
How to avoid forex scams? First, you need to be well educated on the subject. The more you know, the better able you’ll be to spot a scam. And the better informed you are, the better your ability will be to avoid scams altogether. There are lots of well-known resources to help new forex traders become well educated on forex trading scams, including forex glossaries, articles, and more.
Next, when looking at a signal service, you should look beyond the signals and the company itself. Remember, a signal service can be – and usually is – nothing more than a badly written sales letter. This doesn’t mean you should ignore all signals – after all, most of them are sent by well-educated people who have a good understanding of the market. But the point is that these well-educated people are sending you a message. And the message – in this case, a signal that they’ve found – is that you should pay attention.
Finally, another great way to avoid forex scams is to avoid forex frauds. When you’re looking at a new platform or a new forex market for the first time, you should read everything about it. Get a “working” account from a broker and make sure you understand how the system works. Remember, a lot of forex scams involve an apparent “technical” strategy which could very well be the cornerstone of an effective trading system.