The Forex market is one of the most lucrative markets for aspiring traders because it offers very high returns even if you just start out with your $100 or $1,000 worth of initial capital and takes up very little time to learn to trade properly. The potential of the forex market has also made room for forex scams. You will see unrealistic and too-good offers by scammers that are trying to pitch you fraud ideas. This is why many people trying to make ends meet turn to this market as their first step into making easy money. One can also speculate on the direction of these markets without taking
Forex Trading Scams
Forex scams generally require you to be a member of the forex trading community in order to complete any job. A good way to spot an unsustainable trading opportunity is to analyze the trading patterns that the scammers themselves follow. One of the most popular Forex scams is called “sub-account” trading. Here you buy or sell a currency with your own account and pay yourself in smaller amounts every time you sell a currency. As you collect a small amount of money every time you buy a currency, you buy more and sell a little less, thus accumulating and not losing anything. It is a very rewarding strategy that is usually followed by highly inexperienced traders, however, it is not that profitable unless you have good means of communication.
What To Watch Out For
One of the ways forex scammers can lure you to join their sites is to make you believe that they can teach you to trade without investing any capital. Sometimes, you will be asked to deposit $1000 or more but there are other times when you will be asked to deposit less but in return, you will be offered with very high bonuses. A common complaint by users of these websites is that they were cheated and they lost their hard-earned money. Read carefully these many fine print details to avoid getting scammed. The bank details: Before agreeing to any trading deal, you must always ask them to provide your bank details. It is good to check this from different websites.
How to Avoid Forex Scams
Although there are no particular traits of the forex market that make the frauds stand out from the rest, you can get alerts on these scammers through a number of different means. In this article, you will learn about the warning signs to look out for to avoid falling into the trap of this scam. Low trading volume Some Forex brokers have clients which trade very little compared to the active market. As a result, you might see these clients buying the FX pair X for $100 but selling them back for $98. These are the kind of traders that the scammers choose as a source of their income. Impossible loss The forex market is a volatile one. It is possible for you to trade but end up losing a lot of money because the market moves up or down rapidly.
The Signs of a Forex Scam
There are many ways that a scammers can prey on the unsuspecting trader, some of which are below: 1. Price Chasing: A scammer will take a commodity like the US Dollar and he will try to sell it at a very high price. Most experienced forex traders will take the opportunity to buy from the scammer and sell the same commodity at a very low price to make money. The scammer will be glad that you have bought from him and you will now make money without even trading the commodity. 2. Swindling: A scammer will lure you into using his forex platform and promises a great profit if you agree to pay upfront and subscribe for a subscription. The subscription fee would cover all the costs and in return, the customer will start earning a commission.
Why do people fall for Forex scams?
Many people turn to the forex market because they want to make easy money. So when you see an offer that seems too good to be true and you see the risk being taken from you in one of the safest market like forex, the temptation is simply too strong. In order to avoid being a victim of this business, you must familiarise yourself with the small details about the forex market. The Forex scam being offered to you 1) First of all, you will notice that this is a seasonal market because of the difficulty involved in trade. The signals that predict the direction of the markets are difficult to read because it is a seasonal market. It is so difficult to predict the market movements during the season that only professional traders know how to predict them.
This report is meant to help you understand the forex market and understand how forex scams operate and how to avoid these scams. Have you been scammed? Did you get scammed for your money? Do you know anyone who has been scammed? Please share with us and report a scam if you suspect you have been scammed.