We all know that Forex is the largest financial marketplace online in the world but what we do not bother to justify that lots of scammers also using this platform for their gain by cheating with the common masses. Here we will provide the list of possible scams and tell about the ways to keep us away from those miscreants.
Method to spot a scam
Scammers guarantee 100% of profit generation in the shortest period, and their baits work well against the amateurs who cannot control their greed to have a huge amount of money. Those greenhorns forget about the possible risk factors regarding Forex trading and swallow the attractive free cheese provided by the scammers. By the end of the day, when they understand their foolishness, it becomes so late to make good.
To save us from the frauds, we should not rush for the empty promises and try to keep ourselves in the safe zone. We should be aware of that scam software that is sold by the marketers providing catchy eye offerings because controlling the market is not possible as Forex is a giant place operated by supercomputers with complex algorithms. Visit company website of Saxo and you will know why you need a premium platform to trade.
Rogues and cheats always try to sell the secret ETF trading formula at a cheap rate to allure the newbies. They also convince the new Singaporean traders to install the program on their computer, promising it will reveal the hidden signals of the trading platforms, and they can find the profitable trades immediately. If Beginners cannot control their emotions and get tempted by this cheap trading software to get the highest return, then they will be an easy target of these cheaters and lose a huge amount of money in the blink of an eye.
Major types of Forex scams
Frauds are always inventing newer types of scamming methods to snatch the money of the businessmen, and their innovation can sometimes surpass Hollywood movies. We have found some innovative ways using which miscreants execute their ill motives.
1. Robot scams
Forex robot is a trading software that performs its task based on algorithms, technical signals, and computer codes to open or close the trades. All robots are not a scam, but few of them are really used for scamming purposes. Using Expert Advisors (EAs), robots are made inside the well-known MetaTrader suite. One good way to find out the FX scammer robot to search on Google, and beginners can get the notorious name list of the scamming robots.
To avoid robot scams, we may be aware of the unnecessary marketing message those come to our inbox. They try to sell a dream based on unrealistic promises, but those can not be true. Fraudulent activities are observed based on high growth returns. If they want someone to provide an extremely high percentage in return, then precautionary measures should be taken.
Scalping with undiversified strategies may allure many investors, and they may think they are getting the opportunity of doing business in a very small amount of investment but getting higher profit in return. This type of high win rate is not possible in the market, and amateurs lose all in the end.
2. Signal seller
Another popular scamming method is to work as a signal seller and sending out business ideas to beginner traders based on currency pair, target levels, and entry pricing. These types of cheaters want to sell subscription and broker-tied signals based on unverified results.
3. Investment scam using the phone
Promotions are made using phone calls saying that trading can be possible using phone calls with a high return in the investment. These types of fakers open fake Forex investment funds, and they will tell you that they send you the profit later, and now you should invest with them, but by the end, the result becomes zero.
Perhaps there are so many scammers in the market, but if anyone controls his greed and makes rational decisions, then he need not to be worried about the scammers. Maintaining a disciplined trading style and a comprehensive business plan help the newbies to save them from any dangers.