There are people among the human race that no matter what is done to achieve the collective good of all, they will always find a way to derail that progress. These forex scammers are no exception. Like any other form of scam, in their attempts to make fast money, they rob people of their hard earned money with unrealistic promises. These guys are dangerous and should not be tolerated.
Due to the fact that trading on the forex market is decentralized with very little regulation, the global broker systems scam is proliferating and they might not stop anytime soon. So it is now up to traders to defend themselves against these brokers. The sad part is, most of their victims are relatively new forex traders who have barely begun to have a taste of their potential on the market. Now is the time to protect ourselves from these scammers by being able to identify them first of all before reporting them to any regulatory body of brokers in your country.
How to spot forex trading scams
The underlining basic idea is that, if what they are offering is too good to be true, they are most likely scammers. These are some forex trading scams to watch out for.
Fraudulent Forex Investment Management Funds
For some years now, the idea of forex management funds have become a popular trading option amongst traders and that is why they keep getting scammed. It’s hard to wrap your head around the idea of traders who decide to offer the management duties of their funds to a stranger because they were promised outstanding market results. In other words, the trader gives up control over his own money to a so-called skilled forex broker for outstanding market results. The problem with this is that these so-called experienced forex brokers run away with the money leaving no trace. It is always to trade by yourself and learn from your mistakes through progress you make. We admit that trading on the forex market can be difficult at times but is life and you do not see people handing over their lives to others to lead it for them because life was too difficult.
Signal sellers
One of the challenges of an amateur trader is being able to identify a good broker to trade with. There are many fraud brokerage firms out there. One particular party to watch out for are the signal sellers. These guys claim to have a system that can identify favorable trading times on the market. Signal sellers charge for their services either weekly daily or on monthly basis. Their systems may be automatic or manual where the system is expected to automate trader’s position’s based on the data input from the trader
Have you ever wondered about the fact that if these systems really did what they are reported to do, why wouldn’t these brokers have already generated millions for themselves and retired to have a great life-time somewhere on the shore of Indian ocean? Are your little commissions worth more that the consistent and fully applicable strategy to make millions by day trading? All they are doing is exploiting money from traders. Sure these systems may work sometimes but they cannot guarantee that they will work every time.
Not all companies providing trading signal subscription services fall into this “SCAM” category, some providers have obtained licences and charge small amounts for their services or otherwise warn that services provided can not be considered a guarantee of future trade performance or profitability. As such, stay vigilant when choosing to deal with such companies – make sure that whatever they promise is consistent with realistic trader’s expectations and common sense.
Dishonest brokers
Finally the most dangerous among these three. They are firstly not regulated and licensed to operate. So your account’s funds can just as easily vanish along with the broker any time. It’s not a surprise that they are mostly unjust in their services to their clients. They usually set up in certain countries with relatively loose regulations governing financial trading and also to evade paying huge taxes.
Conclusion
To crown it all, if you see any of these signs in any forex brokerage firm tread carefully. Before you choose to trade with any forex broker, check them up to be certain that they are regulated and licensed to operate. If you are already operating with a firm that shows any of these signs or any other suspicious behavior in your opinion, do not hesitate to report them. You might save lots of traders from losing millions.