How Not to Lose Money on Forex: Popular Ways of Cheating

As long as there is forex tradingThe scams of all sorts will be working. Even if the scheme of the scam is disclosed, there will be more and more new ways to defraud hapless traders. Usually it’s newcomers who are “hunted” by swindlers, so not to become an easy target, you should study the market as much as possible and work only with reliable brokers.

How to avoid a forex scam in 2023?

There are several generally accepted tips on how to avoid being cheated by novice traders.

The offer is too tempting.

If you are offered to get rich quick and easy in the Forex market, it is obvious that it is a fraud. It is impossible to become a millionaire in trading without applying any effort and knowledge.

Study the reviews

Reviewing materials about forex platforms: reviews and comments from other traders on verified platforms, for example, will also be very useful. They can give an objective assessment of the broker’s work and your decision to open an account will be based on facts, not on the company’s promotional offers.

Learn more about the company

First of all, go through all the links on the broker’s website, and especially on social networks, this will help you learn more about the company. It is unlikely that unscrupulous Forex brokers will actively maintain their social media pages.

Regulators

Although regulation is a very conditional fact of the company’s decency, it’s better than nothing at all. To avoid fraud it is better to pay attention to brokers with licenses of large regulators.

Top 5 forex brokers

How do you know if you’ve run into a scammer?

As mentioned above, beware of working with those who overnight promise to increase the forex money without any risks and, most importantly, guarantees of results. It is more difficult to deal with companies that cheat not in the short term, but in the long term. In such cases, the trader may not even be aware of the scam. But for the most part, many dishonest sites use standard patterns in their work.

Fake brokers

Some attackers may operate under the name of a well-known company. They may not only have an identical website, but also a full-fledged office to make it more convincing. They may provide a full set of documents (usually also fake) to give a person a complete picture of reliability and security.

In this case, only one remedy will help: find as much information as possible about the authenticity of the broker, the good thing is that it is easier to do this with the Internet. Often it is possible to contact current or former clients (if there are social networks). If, however, there is no information at all, no links for communication, etc., then it may not be a fraud, but it is not advisable to work with such a broker.

Non-standard brokers

It happens that companies are booming only in a certain period of time. They quickly appear on the market and just as quickly disappear. Also they can constantly change the office address and regulators. You should not pay attention to such platforms, it is better to choose a forex broker with a long history, with numerous reviews and real stories of traders.

Forex Investing

The offers of various funds are often very attractive, because they promise to get a fortune in return for a small contribution. Here we can assume that if it were really so, then every second person in the world would already be at least a dollar millionaire. Of course that’s not true and in 99.99% they are crooks. They can also provide a bunch of documents (with fake seals of non-existent research centers, etc.) stating that their scheme is the one that absolutely works. In reality, this is nothing more than a way to convince you to invest your money.

Trading signals and advisors

There are many so-called experts on the net who have found the very strategy for 100% making money. Usually they create closed channels in Telegram, creating the appearance of a VIP group, to which a select few get and with whom the guru shares signals. Naturally, the service is paid and after the payment the “expert” disappears. In the case of signals it is difficult to distinguish between truth and lies. Someone can really help and share their strategies for free. But they will never give a complete guarantee of profit, because their trades will certainly be closed in deficit.

Forex robots

The development of artificial intelligence and its use in various fields could not avoid Forex. It is not surprising that there are people who sell different algorithms and forex robots. The promises say that the buyer will be given an accurate forecast of price changes in the near future and not only. Of course, in most cases this is a deception, and the forecasts are based on fictitious analytical data.

In the forex market it is basically impossible to guarantee an accurate 100% result. Therefore, it is always better to react to any promises of earning quick and easy to ignore. Every trader should understand and soberly assess their risks. We have listed only some of the fraudulent scam templates. The scammers are constantly adapting and creating even more complicated scam schemes. Be vigilant and never risk the money you need for your family’s life.