With a boom of Forex trade and an ever-growing number of people attracted by its opportunities to make a profit, we are witnessing the emergence of many fraudulent instances. The market became flooded with forex frauds and dishonest brokers, trade signal offers, trading software whose primary goal is to swindle inexperienced traders.
The forex market comes with big profit opportunities, but scams, even in small numbers, contribute to its bad reputation, raising many doubts and uncertainties. As a newbie, you should be prepared to spot these suspicion companies and individuals. The right information and some basic knowledge at the stars will prevent you from falling victim of forex fraud. Let’s see how to separate the good Forex brokers from scammers.
Scammers don’t offer free trials
Since it’s in the interest of Forex scammers to take advantage of your lack of knowledge, they will not give you the chance to see how their system works. All they want is to take your money and disappear. If the broker is willing to give you a free trial of their software with a demo trading account, it’s a good indicator that it’s regulated on. When first contacting the broker, ask for a free trial. If you don’t get one, it’s time to move on.
Check customer support and contact details
In every kind of trading, including Forex, don’t take anyone’s word for granted. Check out all the details regarding contact info, phone numbers, emails. Customer support is at the core of every online service, so be sure that the broker has one. And also, try to reach them at the very beginning in order to see how effective and agile they are. Even the most experienced forex trader needs a good client support one in a while. And if you are rooky, just figuring out which currency pairs to choose, what forex strategy to go for, how to use trading software charts and analysis, then the chances are big that customer support will be your best partner.
Look upon brokerage reviews
If you invest some time in carefully reading forex brokerage reviews, the chance of falling a victim of forex scam is nil. In these reviews, you will find all the necessary information about specific brokers. There is a black ship in every fold, but Forex is full of them. Therefore objective reviews come in handy to keep you out from the Forex fraud trap.
Keep you away from signal sellers
You can’t avoid encountering them since they are around every corner on the internet. They use social media to catch your attention, promising you to give you the most accurate and 100% winning advice on Forex trading. In most of the cases, they don’t have any valid record of successful forex trading to show you. Some of them have stories that ring true, but also too good to be true. You should ask yourself why they would sell their top secrets instead of using them to make a profit for themselves. So, you guess the answer.
Trading robots as a form of forex fraud
Just as there is no 100% accurate forex signal, there is no software system that will generate big money for you. To be honest, software development is certainly helpful when it comes to following trading trends. You can increase your gains by analyzing the charts so you can have an idea of how to approach the Forex market in the best way. But, the software itself, no matter how advanced, is not decisive for your success on Forex. You must first try trading on your own, using demo accounts, and to be able to read the market before entrust your money to some algorithm.