7 Tips for Avoiding Forex Scams

 

Tips for avoiding Forex scams

The forex business has lately seen an increase in the number of scams. Here are seven strategies to prevent losing money in such schemes:

Forex scams are getting more common. Michael Greenberg reports on extravagant spending, including the purchase of a submarine using money stolen from forex traders. Here's another case of forex scam.

So, how can we prevent being victims of such forex scams? Casey Stubbs has previously addressed this topic and provided three techniques to prevent forex scams. I will elaborate on his suggestion and offer some more thoughts:

If it seems too good to be true...: Websites that promise automated and large income in a short period of time should raise your first red flag. In this market, there is no quick money. Sites that attempt to offer such things generally have simply one page with flashing dollars and no real explanations. The visuals are often "bright" and not modest.

Also Read: The 10 Deadly Mistakes Traders Make?

Talk to people: 

Casey recommends talking to people in the company as well as people who use the product to gain ideas. In certain circumstances, the people in the promotional video will already look clowns. In other circumstances, they will look serious, but you must ensure that they really stand behind their product.

Google the product and search for problems:

 I would add that you can simply run a Google search and add phrases like "sucks" or "scam" to the product's name. If the search results provide too many persuasive results, it is not just rivals who are upset — it is actual people who have already been harmed.

Check the people on LinkedIn:

 The world's largest professional network has a large readership. When you search for the people behind the company on Google, the LinkedIn profile is usually always one of the first results. It is a concern if the people behind the enterprise do not have a LinkedIn profile. If they do, find out who recommended them. You will feel better if you get solid suggestions.

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Regulation:

 Any substantial market player will be regulated by at least one body. The American NFA is the most stringent authority (sometimes too tough). In a normal nation, a stamp from the NFA, FSA, CFTC, or another reputable agency does not guarantee that the company is legitimate, but it is better than nothing. Companies listed on some foreign island seem to be suspect.

Demo account: 

As previously said, a forex demo account is the fundamental broker check. Some robots can truly perform well, but how do you know? You should check into it. Request that you be able to test it out without risking any real money.

Intuition: 

At the end of the day, you have an impression of the people on the opposite side. As you can see, there are a lot of bad people in the forex sector. In contrast to the general practice in court, where a person is presumed innocent until proved guilty, you should think that everyone is guilty and that they must prove their innocence to you.