If you’ve ever wondered if there are tips to avoid a forex scam, then you’re in for a real treat. Some of these scams are quite skilled, while other less skilled individuals are just unlucky enough to have landed themselves into real financial trouble.
But, like many situations in life, scammers go around and come, and as long as you stay on your toes, you can avoid being a victim of a forex scam. Here are some tips to avoid a forex scam:
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Check out forums
For those who are curious about how to avoid forex scams, it helps to check out various online forums. Many people talk about their experiences, and you can get an idea of which broker to avoid and which one is a scam.
Look out for posts where people complain about losing their money or being ripped off. You can also try reading online press releases about online forex scams.
Use a tool
Another tip to avoid a forex scam is to always use a currency converter tool when thinking about trades. When looking up a pair of currencies, always include the one that is currently going against you in the calculator. This way, you can determine what percent you stand to earn by exchanging the two currencies together.
The point-spread scam is when brokers tell you that you can double your money in just a few hours. This isn’t true; many brokers give you a small percent edge for the trade, but this still isn’t worth your time.
Secret Formula
One of the worst mistakes you can make when it comes to forex exchanges is believing unscrupulous traders who claim to have a secret formula for making money. These brokers often have nothing more than cold hard cash for hands and don’t even give themselves a chance to see your money fall.
Unfortunately, it’s not all scams; some people are actually genuine, but the vast majority of them are simply trying to scam you. In fact, this point-spread scam refers to the practice of increasing your profit using a fixed exchange rate and then hoping that you’ll keep on trading using the incorrect amount.
Forex Trading Systems
Some traders think that just because a trading system claims to be “100% guaranteed” or “bust proof” that it’s legitimate. However, nothing could be further from the truth. Scams of all kinds can take advantage of people’s greed and need for instant, big money.
If you are ever asked to send money to a seller, it’s best to ignore the request altogether. Many legitimate sellers will never ask for such a thing.
Robotic Forex Trading Systems
Just like any other type of forex fraud, a robot scam is often run by a person or company that doesn’t even exist. This is often referred to as a “pimp machine.” These robots are often advertised as easy to set up and use, and may look like they are straight out of your computer science textbook.
However, many traders have turned their noses up at automated trading systems because they are vulnerable to insider manipulation and other bad behaviors. If you are looking for a fast way to make money, this probably isn’t the way to go.
Avoid forex trading scams
It’s actually quite simple, provided you are willing to put in the time to learn. Avoiding forex scams begins with learning as much as possible about how different types of programs work and which signals are the most reliable.
A good rule of thumb is to avoid signals that don’t come from “real” people, such as brokers. As well, avoid signals that require you to “make a purchase” or give you an estimate of when you should make a trade.
