How to Avoid Forex Scam and Fraud

With participants ranging from multinational corporations, to large banks, to speculators, to governments and small fraction of individual professional traders, the Forex market is among the most active trading markets in the world.

The volatility prices of foreign currencies can cause heavy losses for an investor. Nevertheless, this is not the only risk an investor should consider when it comes to Forex trading.

All investors must as well be aware of FX scams that are premeditated to rip them off. The extremely nominal nature of the off-exchange trading, retail Forex industry and the slack rule of the market can leave retail speculators susceptible to Forex fraud. The internet as well is encouraging these scam Forex companies with fake credentials and names.

Before we go into how to avoid Forex scam, is imperative to understand these scams. Or how can you avoid what you don't even know or understand?

Some common Forex scams include selling software that is meant to earn large profit for the customer, creating false customer accounts for the intention of generating commissions, false claims of customers making huge money, phony marketing and outright theft of a customer's account.

Since you are into currency trading to make money, you must know how to avoid Forex scam. The information here will help you a lot on how to avoid Forex scam.

Scam artists are getting better at what they know what to do as Forex scams are plastered all over the internet. Therefore, whenever you are dealing with any site, don't trade with websites that tell you that Forex trading is easy. The truth is that you need a lot of hard work and patience to succeed in Forex trading.

The scammers capitalize on the human nature of wanting things quick, easy and convenient to lure new customers with easy and quick profits in Forex trading promises; but unfortunately, the only people who are going to make quick and easy money are the scammers themselves and at YOUR expense of course!

Another way to avoid Forex scam is for you to keep away from any website that claims to have a secret trading system. A lot of Forex traders believe the fact that there is a holy grail or secret trading method that will make profit for them overnight.

Buying this ultral-secret trading system for a specified amount is all you need to be set foe life! Don't ever fall prey to these lame offers as they are to cheat you.

Furthermore, verify the income proof of the site you want to trade with because only successful and established trading methods always have income proof on their site. Checking the income proof is typically a good sign that a company is viable and they are ready to stand by it.

However, note very well that the income proof never guarantee the authenticity of trading methods but only to increase the chances that the system is legitimate.

You can as well read the review of experts to avoid Forex scam. Reading reviews of professionals will help you determine the broker that fits your specific Forex requirements and those that may fall short as well as save you from scam.

If you read an FXCM overview or an Onada review, who are the two foremost borkers, you might be very confused about the Forex broker you will choose to trade with.

However, any FXCM review will tell you this is such a serious broker that have achieved its status due to its superior service while the Oanda review will leave you with similar impression that this broker is reliable, serious and can stand out of the Forex broker crowd.

Forex rating is used to discover the best broker and it is based on business integrity, performance, contribution and reputation. It is dominant for traders to select the best Forex trading brokers because they are capable of offering traders with best trading platforms as well as the most preferable trading conditions that can help them succeed in currency trading. And for those who are of the opinion that eToro is a scam. eToro has a lot of contests at all time to be frank and factual.

How to choose the right currency pair?

Practice shows that most novice traders are limiting themselves to the pair EUR / USD. In fact, this financial instrument has a number of negative features...

10 Ways of Risk Management at Forex

The popularity of forex trading has always been high for a number of reasons. The main one is the outstanding profit potential, provided by a significant...

Where did bulls and bears come from?

Learn where bulls and bears came from and how this animal imagery caught on to be a central part of the financial markets until...


ABCs of leverage in the forex market

The usage of of such a specific tool related mostly to forex market as leverage is an opportunity to increase the trading volume at the...

Forex robots and how they work

In essence, there are two ways Forex traders can approach trading: they can either decide to analyse the market and trade on their own, or they can...

How to become a successful day trader

Anyone can become a day trader, learn how to do it quickly, how to manage the risk, and what to avoid to succeed in financial markets. Read the article...


Currency pairs. Base and quote currencies

Currencies on the FX market are always traded in pairs. In order to find out the relative value of one currency, you need another currency to compare. When...

Trading Checklist - Interview with Expert

As a country manager I get asked this and other trading questions daily. My position also means that I get to watch both successful and not so successful traders...

Everything you need to know about Forex

What is Forex trading? This article covers everything novice traders need to know about the industry, how to get started, how to grow as a trader...

  


Share it on:   or