How to avoid Forex Scams on the Internet and why
Forex scams are becoming a new familiar, but you can find yourself a good advisor and teacher with proper research and patience. You shouldn’t fall for ads that say you will get a million dollars in a day, because where does that happen? Money doesn’t grow on trees, but it can slowly grow on your trading account if you have enough knowledge and patience.
Here is of advice on how to avoid forex scams on the internet these days:
If it looks like you can make it in 24 hours, it’s probably fake. This should sound suspicious regarding everything in your life, especially trading. Nobody will give you money, just like that. Ads like this come from scam companies relying on people who are desperately trying to find a way to make more money. Therefore, they use your financial instability to make sure you click on that. Yes, it’s enough to check it out. Your phone will start ringing in no time, and you will be spammed in real life, not only online.
See others’ experience: Try reaching out to people who are already trading and seeing how it goes for them. Ask for some advice, and they surely tell you where they went wrong at the very beginning. If they said they lost a lot of money, and they do not want to trade anymore, they were a hundred percent victims of a forex scam. They fell for promises from an unregulated company, promised them the world, told them they are trustworthy, and were probably very pushy.
Just google it: If the product that somebody offers you sounds suspicious (even if it doesn’t), you should google it right away. Do you know those terrible restaurant reviews? The same goes for companies. Type in the name and add a keyword such as “fraud,” “fake,” or “scam,” and see what pops out. If there are too many people complaining, you know you shouldn’t have any business with that person that just offered you the world.
Check the people who are calling you: If you want to check the person trying to pitch you, check their professional background. No, don’t ask them. They will tell you themselves, anyway. Write their name down and study on LinkedIn. Search for their name and search for the company they say they are working for. If they don’t have a profile, that’s already a red flag. Even if they do, see who recommends them and if there is something fishy about that. If so, it is probably a scam.
Regulation: This is a mandatory move when doing a check-up. Every serious company is regulated by one or even more authorities. That means either NFA, FSA, or CFTC stamps. You can usually go to their website, type in the company, and see if they are on the list. If a company is regulated, but they are listed in an exotic country, that is also raising suspicion.
Forex Demo account: Here is the catch; Forex demo accounts are usually offered to complete beginners, which is a good thing because you are not trading with real money. You are practicing and learning how trading works. Automatic software can be an ok thing, but if they ask you to give them money, try asking to try it out without actual cash.
In the end, your instinct should also be one of the leading indicators. Something is not right. If they are too pushy, saying too many things and not letting you speak, that is already something you should consider rude. Even if they are friendly, also do that check-up we talked about. There is nothing to lose, and you and your money will be safer. You will also avoid forex scams. Happy trading!