How to know about forex scams?

How to know about forex scams

The foreign exchange market is an abundance of opportunities. It is synonymous with drawing huge benefits in quick time. The trades of more than USD 6.6 trillion a day speak a lot about the potential of the forex market. However, the perils are getting bigger by the day as scammers have got their eyes deeper into the pockets of businesses. So, when you attempt to make an investment in the market, you are always on the radar of scammers. So it is important to spot a forex scams. 

Forex scams are generally carried out by fraud forex brokers and exchanges. Also, there are multiple variants using which you trade in the market like options, futures and others. Being vigilant while trading can save you from duping your money. You do not realise it when your funds are gone in fractions of seconds. 

Read reviews for forex trading websites 

The most common and easiest way to spot forex scams is by reading. So, surf a little on the internet, read comments and views of other users. There you’ll get an idea about the broker or exchange and their modus operandi. That’s why before indulging know-h0w helps in ascertaining their authenticity. 

Moreover, if there are consistently wrong reviews or comments on the internet regarding a broker you’ve chosen, be alert and do not register with that. You save yourself from a grave mistake that would get you into trouble. 

Furthermore, there are forums that hold log discourses regarding forex brokers and exchanges. If you’re a new trader, it is good to visit them and read what people have to say. Here, they write things unabashedly. Hence, you get to know a real face because reviews can be manipulated but not the views and voices of thousands of folks. 

Also, any review website that writes only good things and promotes it like their own, hiding cons, beware of such sites. They may exhibit a wrong picture of that broker or forex trading portal. 

Some brokers may use bots for writing reviews. They have fake names and no photos. It should trigger an alarm regarding such brokerage companies.  You should snap your ties with them. So, you should be sceptical while believing a review site as well because that’s part of forex scams. 

Visit the official website 

If you truly want to acknowledge whether the broker is fraudulent or genuine, visiting the official website is the best idea. In the beginning, check the logo of the website. If it is original, you’ll find the difference. However, if there’s Reebok and Rebok kind of imposter, that should send a reminder to your brain to chuck trading through it. Scammers use duplicate frames of a renowned website to fool you. They’ll keep the alignment, header, footer and information ditto. 

A novice trader would not make a distinction between the two. And such investors are on the radar of scammers. So, it is better to read a little on how to choose a better broker as a beginner. You’ll have plenty of suggestions that can save your day and money. It is always better to learn from other’s mistakes than committing one in the forex market. 

Registration and licensing of a forex broker

A veteran trader can spot the difference between trading on an offshore broker, and a company owned one. The former has the liberty to work without registration, license and abiding by the laws of the land. However, the latter follows all rules and regulations. Thus, you can trust it and invest your money there. 

So, if you find the following traits in a forex broker, do not trade with them.

  • Any broker that is devoid of license and offers you trading privileges do not go with them. It is like riding pillion with someone who does not have a license of the vehicle. And you the consequence. A challan is always lurking. So, any foreign exchange broker that is unable to provide proof of a license steer clear of them. 
  • Registration is another aspect that can help you spot a fraudulent or scam forex broker. An authentic one would obey the rules. You’ll know if something which is registered with a government recognised agency or authority could never misuse its powers is worth trusting. A trader can freely make deposits and withdraw funds whenever needed. On the contrary, if you get trapped with a portal that is not registered anywhere, you won’t be able to get hands-on that once that inflicts a scam on you. There are no records available through which that can be caught. 
  • If a brokerage firm is not regulated by any regulatory body like FCA or CySEC, it is questionable. You should not trade with the broker at all because, if anything goes wrong, there would be no authority looking after the case. An authority keeps checking on the activities of a broker. On finding illegitimate ways, it can ban their services in the market. So trust those brokers who have these authorities hovering over them; your funds will remain safe. 
  • Sometimes, an imposter website can copy fake registrations, licenses and information of a regulatory body. In that case, you should check the domain name. Remember, there cannot be two domains with the same name. Also, a famous forex broker will always have a fantastic ranking on Google. You can check that using several free tools available on the internet. 

Surprisingly huge benefits 

People mostly get trapped when scammers offer them huge discounts and gains. So much so that people stop using their understanding for a few minutes and float in dreams, away from the reality of scams. So, if any person, broker, email, website or text message promise massive returns from forex trading, you must step aside at that exact moment. You are subject to getting scammed. There are no shortcuts. You have to understand the market and see things developing into profits. And it does not happen overnight. 

Conclusion: 

Forex scams are quite common when it comes to trading them over the counter or in the offline market. In lieu of an exchange, several local exchanges pay a lesser amount. It is the commission they call, which is a way higher charged by a genuine exchange. Also, good brokers would not charge much commission or make loud noises about forex trading. If you get scammed, contact Fast Action Refund, which will put its technology and experience behind to recuperate your scammed funds. 

Related Articles

Sitemap