Most of us want to make some extra money and have seen Forex trading on the internet. It can be hard to determine which are legitimate trading opportunities and which are Forex scams.
A third party can help find reliable brokers and assist people who have fallen victims to forex scams.
What Is Forex?
Forex is an abbreviation of “foreign exchange” and involves trading pairs of currencies against each other. For instance, if you feel that the British Pound will increase against the Euro, you would bet on the pound.
Forex trading seems straightforward. Everyone has dealt with currency at one time or another, and people who have traveled abroad understand the concept of currency pairs. What could go wrong with forex trading, and why is it the center of so much controversy and worries about forex scams?
What Are Forex Scams?
Unfortunately, to the untrained eye, Forex scams can look like actual trading until you actually sign up, give over some money, and then discover that you are not only not going to make a profit but may not even recover your investment.
There are various types of Forex Scams:
The first step to choosing a broker is to ensure that he or she is regulated. It shouldn’t stop with just checking for a license; confirming the license is from a highly-rated regulator is also essential. There are also problems with counterfeit licenses, which can be hard to identify as fake. Be skeptical about brokers who provide only scant information.
Signal Seller Scams
Signal sellers will promise practical tips and trading strategies. They are quick to sign you up for their service for a substantial fee. They will suggest currency pairs, and often these trades will not turn out well for the trader, but they have already paid for the service. Sooner or later, the trader will realize that the tips are fake and only benefit the bogus broker, but they may have already lost a lot of money.
Fake Robots or Automated Systems
Robots are not always a red flag. Increasingly Artificial Intelligence is being used, from everything to chatbots to sentiment analysis. However, robots are intended to enhance our ability to trade, work or perform other functions, but not necessarily to take over.
The scam perpetrators should provide clues such as promising the robot will help you make money in your sleep. These scammers want traders to be asleep at the wheel and not pay attention to what is happening–would-be traders are being robbed in their sleep. In these cases, the robots are not trading at all. It is no more than a video game.
Phony Schemes and Funds
This is another example of a scheme based on a structure that may otherwise be legitimate in the right circumstances. In this case, these forex scams are fake money managers. Someone will offer to invest your money in a forex investment scheme that will supposedly yield returns as high as 50% a year.
One way of telling that this is a scam is the extravagant guarantee of high returns. The typical fund returns 10% or around that level a year. Any scheme that guarantees double or quintuple that amount is most likely a forex scam.
What to Do If You Lose Money in Forex Scams
Many people feel it is too late once they have lost money in forex scams. However, Trader Defender experts will track down scammers and provide a full investigative report on the Forex scam. Trader Defender has vast experience in dealing with Forex scams uses data-driven methods to track down fraudulent players.