Speaking of Forex scams! Scams are real and so many types of Forex scams are out there. If you have not encountered one, Lucky you. Better take this warning seriously.
Forex scams offer too-good-to-be-true investment opportunities.
Their intention is to excite you so that you fall for their trap.
Forex trading is exciting and enjoyable to make a million dollars.
It is also heart breaking when robbed your hard earned money just on an empty promise.
A scammer will tell you to press that red button and get a million dollars. What a lucky charm! They have smooth nice tongues with sharp knives in their hands.
Don’t get fooled.
If it was that easy, then why wouldn’t they just place the button and make the money themselves. Instead of going through that trouble to first convince you.
The Forex scammers tend to target beginners because they have little knowledge about Forex.
Take your time to study and learn the market. Develop a trading plan. Practice risk management.
Practice patience and persistence.
Don’t get greedy. Follow your trading rules, you will become the profitable trader you would like to be!
Types of Forex scams and how to identify a Forex scam
These types of Forex scams are 100% very persuasive and convincing. Their giveaways are a guarantee of large profits with little or no financial risk.
When you come around someone promising you 100% return on Forex trading, just run for your life. Because there is no such a thing.
Avoid such tempting online offers, those guys are very smart at their job and always ready to swindle your money.
It is their way of making money online anyway. They are scams, that’s what they do. To rob those who are new in the system. They give them very exciting offers that are hard to escape.
Because you want to make money and someone says he can make it easy for you doesn’t necessary mean it’s true.
You should always make some due diligence before you trust any trader or broker especially online.
The fraudsters are everywhere and so experienced that you cannot easily know their real intentions.
Let’s now look at the different types of forex scams to be aware of!
Types of Forex Scams you should avoid
1.Robot Scams
Trading with a robot is an automated way of trading where, a system is coded and programmed to execute trades.
The use of automated algorithms or “expert advisors is trending now days and it generates good profits if well back-tested.
Not all Forex robots are scams. However, most of these robots don’t make consistent profits.
Many scams try to sell these unprofitable systems on the internet, claiming that the systems make big profits.
You will find many testimonies online a long from people saying how they multiplied their wealth with those robots.
Please don’t just invest your money blindly.
Make some research first before you take such a big step.
Or else take your time to learn Forex, practice enough or make your your own robot if you can.
2. Signals Seller Scam.
The signal sellers are the commonest online. They are allover the social media, selling signal set ups or systems to trade.
The signal sellers do the analysis for you, give you setups to trade, choose for you currency pairs, entry points and exits.
Actually they do everything for you.
All you do is to pay a subscription fee and you keep receiving their trading signals. You can subscribe to signal sellers on a weekly or monthly basis for a fee.
Yes, some signal providers maybe legit but most are scams.
If lucky you may make profit from buying signals but there is no guarantee to that. Most of these signal sellers are actually not experienced traders. They just gamble around to make a living.
Instead of investing your money to buying signals, put it into learning or add it to your account and trade it yourself.
3. Managing Account
Successful and experienced traders become Forex managers and earns a share of profits from the accounts.
However, not all are genuine. It also has most of the same problems described above, so should generally be avoided.
Make enough research on these account managers apart from those statements they show you.
4. Forex Broker Scams
Yes, Some of the brokers are also scammers.
They attempt to scam their customers through point spreads and slippages.
A Forex slippage occurs when your order or stop loss is executed at a different rate/price level than the one set in the order.
As I conclude, I assure you that you can actually avoid most of the above Forex scams. Do enough research not to fall into their Traps.
Good thing about Forex trading is that you can learn it by yourself, though it may take time. However, it is worth it to learn, train and practice.
It takes patience and discipline to make money trading Forex.
We shall discuss details of each of these types of forex scams in our next lessons.
By the end of this session, you will have a great clue about these scams, What they do and what to do in case you encounter one. We will also show you some of the regulatory agencies across the world too.
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