Introduction to Forex Trading Scams:
Foreign Exchange that is commonly abbreviated as Forex or Fx, as the name suggests, is a market where people trade currencies. In 2019, the forex market alone experienced $6.5 trillion trades each day making it the largest financial market in the world. However, just like every good thing comes to an end someday, the increasing fame of the Forex market went the wrong way with the scammers infesting the market. Just a regular google search of forex scams is enough to make you drop your plans of starting forex trading. Do you want to know more about forex trading scams and ways to avoid them? Read on to know everything about forex trading scams.
How do Forex trading Scams work?
The whole industry of foreign exchange trading works based on fluctuations made in the currency exchange rates. Although this industry is legal, the forex or Fx market has been experiencing a lot of scams recently. The major shift of this market to online-based platforms has further increased the risk of the customers suffering a loss. In such scams, the scam brokers will try a variety of new methods such as cloning a legitimate firm to trick the customers, cold calling victims, and putting them under psychological stress to trade in forex.
Types of Forex Scams:
Below are some of the common forex scams that people have fallen prey to:
One of the most common methods of forex trading scams is AI trading. In such cases, the brokers create a false impression by promising the customers that they will be able to earn money while they sit freely. You heard it right, these brokers adopt artificial intelligence into the market and convince the customers that the robots will do all the trading for them. However tempting this might sound, you must know that this is a complete scam. The artificial intelligence that these brokers use is not tested by any agencies and therefore, there is no guarantee that these robots assure profits.
This category is another umbrella term for unqualified brokers and scammers who work with the sole intention of scamming innocent and unsuspecting customers. The signal sellers trade information and advice on what to buy and what not to buy to the customers in exchange for money. The customers are required to deposit a fixed amount every month in return for such valuable information. But how can this be a scam? These signal sellers often consist of unqualified or underqualified brokers who have no knowledge about the trading market. These people fail to deliver the crucial information and continue to take the money from the customers.
Other Forex Scams
Other forex scams include the market makers, the brokers who pretend to be legitimate firms, the ones who promise great profits, etc.
How can you avoid Forex Scams?
> Never trust the pitches delivered by the brokers.
> Trading always includes loss, do not trust brokers who promise guaranteed profits.
> Always conduct proper research before trading your money.
> Always look for licenses acquired by the brokers.
Scammed by a Forex trading scam broker? You can get a refund for your losses. Contact Scam Victims Help.
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