The forex market continues to draw lots of investors every day. With $5 trillion changing hands every 24 hours and with a solid spot as the world’s largest financial market, its popularity really should be no surprise. It has helped millions of people climb up the financial ladder.
As more people are drawn to its potential, more scammers arise who are ready to deceive the uninformed. Scams exist because there will always be newbies making their entry into the industry. However, the primary reason why scams are successful is a lack of education. This article was written to ensure that you don’t fall victim to an investment scam. Here are some of the red flags you should watch out for when getting involved with a forex agent:
* Guarantee of Unusually Large Profits
Most forex scams end up being successful because the scammer succeeded in exploiting the most common weakness of forex scam victims; wanting to get rich quickly. The inability to deeply consider an offer is the Achilles heel of many new forex investors. For example, promises of 1000% returns in one year from an ECN broker are inviting but at the same time, too good to be true. Forex is a largely unpredictable market and offers of guarantees should be well examined. So, beware of sugar-coated and empty promises.
* Steer Clear Off Unregulated Bodies
If a forex company has nothing to hide, how come it isn’t being regulated? One of the ways to spot scammers is to check if they are regulated. In the world of forex, regulation is legitimacy. You can check the forex time review to see forex platforms that are both registered and well recognized. The danger of dealing with unregistered bodies is that your funds are not insured and the body has the freedom to make decisions that undermine your interests at any time.
* Trade Signal Sellers
Trade signal sellers are forex dealers who offer signals and pointers that are intended to predict huge profit flows. These signals include entry price, currency pair direction, target levels, and stop losses. The problem is, these signal sellers usually demand large payments before they offer their advice or demand that you register with a broker that they will most likely be affiliated to.
Trade signal sellers can hardly provide authentic proof of past successes and you can hardly hold them accountable when their predictions fail as is the case most of the time.
How to Stay Ahead of Scammers
- Keep personal information away from anyone you do not have good reasons to trust.
- Investigate and get background information about any person or company you intend to entrust with your investment capital. You can do this by getting first-hand experiences of their customers on online forex forums.
- Do not be hasty to make decisions. Also, beware of any person or organization that wants to hurry you. You need time to check their authenticity. There is no need to be in a hurry.
The most important way to escape scams is to get educated. This way, you will be able to smell scammers from a mile away.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.