The popularity of Forex has gained momentum over the years. And as it has soared to a higherlevel, the scams have engulfed the industry, creating chaos and doubts. These days, the ForexScams have become such a common occurrence that it has become necessary for every traderto learn a few steps to protect themselves.
Guidelines to Protect Yourself From Forex Scams
A few instructions will help you protect yourself from Forex Scams. If you do not adhere to these guidelines, you will fall prey to these scammers and lose money even before starting trading!
- Performing due diligence: Due diligence is an umbrella term for some necessary basic research such as:
- Viewing User Reviews: While online shopping, everybody reviews before buying a specific product; the same should be done on trading sites. Yes, there will be some bad reviews; no trading site can have 100% good reviews but look for money withdrawal issues, slippage, etc. These indicate that the site may be that of a scammer.
- Area: Offshore brokers established by unidentified firms are unlikely to be authorized. This means people will be difficult to contact if you require technical assistance – and if they are scams, you will be even less likely to receive your money back. Instead, check to see if a broker has a designated headquarters location in an area covered by regulatory bodies.
- Regulatory Bodies: It is essential to check if the fraudulent site or broker is registered under the regulatory bodies. One of the regulatory bodies is the Securities and Futures Commission (SFC). ; you can visit their website and check the list of genuine brokers.
- Too good to be true: This step, more often than not, this step is the easiest way to identify and protect yourself from forex trading scams. If you come across an offer such as “become a billionaire overnight,” then do not click it because such requests are practically impossible, hence too good to be true.
- All that glitters is not gold: Flashy sites that offer high returns and huge profits are the ones you should avoid believing in. Because no one can promise you such gains as no one can predict the market. Anyone who does so automatically falls in the “scammer” zone.
- Celebrity endorsements: Remember that just because your favorite celebrity is endorsing a product doesn’t mean that they trade from this site or that the endorsement is genuine. It is probably a fake one, and most importantly, the celebrities wouldn’t engage themselves in such questionable sites.
- Performance history: Before investing in any forex trade through a website, check the firm’s performance history. Double-check the information present on the site with Google. You will learn the truth.
- Risk disclosure statement: When you visit a trading website, make sure to check its Risk Disclosure Statement as it is crucial and a mandatory note imposed by the government. If there is no such thing on the website, then understand that it is fake/fraudulent.
- Pressure: If a broker presses you to deposit a certain amount of money, you should immediately block him since no honest broker will pressure you to do so immediately. It is not the case with genuine brokers because they want you to feel at ease and only trade when you have sufficient funds.
- Contact information: When you visit the website, check if any contact information is provided, such as email address or phone number or even the company’s headquarters. And if none of it is available, then they probably are scammers.
- Educate yourself: Before entering the trading industry, it is crucial to educate yourself thoroughly. Because only if you educate yourself will you learn to identify a legitimate site from a fake one and acquire the skills required for trading. While you are it, it would be wise to know you can get forex scam money back with the help of fund recovery firms. These firms assist in the recovery of funds by undertaking preliminary assessments. Gathering proof and addressing corrupt practitioners are the next steps. These companies put an awful lot of effort into recovering money from scammers for the victims.
- Use GOOGLE: Make sure you Google about forex scams related to that particular website as it will save you both time and money.
Forex is not a scam in and of itself. It is simply a legal way to make money. Forex trading profits are not guaranteed; gains and losses will both occur. For a trader, this is an everyday event. Defrauding people in the name of Forex, on the other hand, is a SCAM! Outside, some crooks are plotting to steal people’s money. And they employ a variety of techniques to accomplish this. Our responsibility is to be cautious, alert, and educated to avoid falling victim to such scams. Scammers’ promises of huge profits overnight are nothing more than deception. It is prudent not to partake in such activities. Also, keep in mind that only invest what you can afford to lose when trading.