Forex Trading Scams You Should Avoid

[bk082087]

The only thing more dangerous than binary option scammers are the even worse scammers who 'help you' get your money back from brokers, never works, total scams. They leave their email addresses everywhere looking for more victims.

Yes, nobody can help you get those money back. It’s call scam for a reason.

 

[Janismm88]

Very general info, I would say all forex services, signals, EA, trading systems are scam unless proven otherwise with rock hard statement. Where is your statement for real account for years with investor password. Thats it our search is over
my scam definition - doesn't live up to impression at sales pitch may let you think you become rich very soon all trades or most profitable small drawdown reality is different. Most funny is many trading indicators and systems 99% of them post several screenshots of random succesful trades. It couldn't be more stupid proof. every stupid joe can post some succesful screenshots even if you filp a coin you can post fake screenshots with multiple 500+ pip trades. Stupidity is beyond imagination.

 

[DaveT]

Good advice there, thanks

 

[Oswald Franklin]

This is a great thread. Scams are at rife in forex. We need to be very careful and alert.

 

[JamesEdwards98]

The forex market is a legitimate place to make money and profits. However, not everything in there is good. Forex trading scams exist, and you should learn to spot them to avoid them.

In this one, we’re going to dissect different broker scams. Among them are signal sellers, dishonest broker, and others. Let’s kick this off now.

Signal Sellers
Forex trading platforms nowadays follow algorithms. Thanks to the new technological advancements, these algorithms can provide signals to traders.

The signals, then, give them ideas about the next price movement of the asset. These systems let the traders position themselves ahead of the curve. It’s like an early warning device that tells you when to buy or sell.

Now, some brokers who commit forex trading scams take advantage of this system.

Signal sellers simply offer a system that, they say, identify good times for buying or selling. This system can on their forex trading platforms.

You can do it manually, where you put the trading info and they provide you a signal. Other times, it’s automatic. Automatic systems will put on a trade when a signal shows itself.

Some sellers depend technical analysis to justify their signals, while others base on news. Many use a combination of both.

The common ground is that they claim these signals offer you good clues what to do next. Of course, their signals come for a price. You may either pay per signal or it’s a part of their brokerage services.

Criticisms of Signal Sellers
Most often, it’s easy to criticize such systems. You can simply ask, why would sell signals on widely available info? You would think it’s much better for them to use this unbelievable system for their own advantage.

Of course, there are others that really do provide signals to their clients. But the difference is that these scammers usually disproportionately tout their systems as the best.

Another important this is this: is it really possible to predict the next move in the market?

One way to work your way out of this scam is to try their signals using demo accounts. Take some time and see whether it’s really as efficient as they claim it to be.

Dishonest Brokers
One of the forex market’s unique characteristics is that it has no real central regulatory body. The spot forex market, for one, is totally on its own. There’s no regulator for it.

That’s why it’s easy to see how some brokers try to take advantage of this by not dealing fairly with their clients. It’s not really uncommon for a broker to defraud a trader.

Luckily, there’s a way to avoid such brokers.

You can pick a forex broker that also deals with stock market trades. The stock market, unlike the forex market, follow regulatory bodies like the Securities and Exchange Commission. Another regulatory body is the Financial Industry Regulatory Authority (FINRA).

But don’t misunderstand that. You can still trade with a forex broker, as long as it also handles stocks.

The forex trade doesn’t go on any regulation, but the stock trades do. A broker that deals with stocks follow regulations from the SEC and the FINRA.

They wouldn’t risk losing their license for other securities. So, they probably wouldn’t defraud you as their forex trader.

Phony Forex Investment Management Funds
First off, what’s a forex management fund?

This type of fund or trading account where you let an account manager to trade on your behalf. You deposit funds and then the manager does the job.

The goal of this account is to alleviate your difficulty of in terms of making decisions for your trade. You’re basically free to use your time for other things. Maybe you want to spend time with your family, or you want to go jet skiing in Tibet.

This is ideal for those who have another career to pursue. You don’t have to personally deal with the trading process. Sounds tight, right?

Unfortunately, this can be another of those forex trading scams.

It’s easy to see where the problem lies in here. The fund purports that the manager is “highly skilled” and will take care of your account. Then, they ask you to basically give up control of your money.

That sounds problematic right off the crack. Most of the time, you know very little about the fund manager.

Forex trading scammers usually describe these managers with a record of success, which may be false. It’s also super hyped up on their websites.

There’s a huge chance you’ll end up with nothing. The fund manager may get away with it and live on your money.

Great post for all new comers to Forex, it's a must read.

 

[jim67]

Very general info, I would say all forex services, signals, EA, trading systems are scam unless proven otherwise with rock hard statement. Where is your statement for real account for years with investor password. Thats it our search is over
my scam definition - doesn't live up to impression at sales pitch may let you think you become rich very soon all trades or most profitable small drawdown reality is different. Most funny is many trading indicators and systems 99% of them post several screenshots of random succesful trades. It couldn't be more stupid proof. every stupid joe can post some succesful screenshots even if you filp a coin you can post fake screenshots with multiple 500+ pip trades. Stupidity is beyond imagination.

could not have said it better people need to do there due diligence in everything online

 

[Faelar]

You can always tell that something is a scam from a mile away just that some people chose to play around with their chances to see if it may not be a scam. It is very simple. If it is too good to be true then it is too good to be true.

 

[Malsa]

The reason why most people fall for scams is because they do not know the dynamics of forex trading. You will anyone scammed in forex if you let yourself be scammed. You can always tell that you are about to be scammed by reading the signs or just your gut feeling.

 

[TareqS]

Most of the signal selling services and so called social trading gurus are scammers. Choosing a good broker may get tough since brokers scam people in a different way. However, it is still possible to avoid scam brokers by choosing one, which is reputed and has been in the market for relatively a long period.

 

[jamesbarbar]

Forex scams come in a range of shapes and sizes, which, in part, makes them so tricky to spot. You should beware of these types of scams:

1. Price Manipulation Scams

2. Unsegregated Accounts

3. Personal Data Scams

4. Signal-Seller Scams

5. Robot Scams