Forex Trading Scams: How to Spot and Avoid Them?
Scams have become more popular in the forex industry recently. Here are 7 tips on how to protect yourself from fraud :
- If it looks too good: Sites that promise big profits in a short amount of time should lift your suspicions. There is no such thing as easy money in this market. Sites attempting to sell such items usually have only one page with flashing dollars and no serious descriptions. Typically, the graphics are “loud” and not humble.
- Talk to people: To get an idea, Casey recommends talking to people in the business as well as people who use the product. The people in the promotional video might even look like clowns in some situations. Other times, they will seem extreme, but you must confirm that they really stand behind their product.
- Google the product and search for problems: I'll add that you can quickly do a Google search and add words like "sucks" or "scam" to the product's name. It's not just rivals who argue if the search results return too many persuasive results; it's actual people who have already been hurt.
- Check the people on LinkedIn: The world's largest professional network reaches a large number of people. When searching Google for the people behind the business, the LinkedIn page will almost always come up first. It's a challenge if the people behind the venture don't have a LinkedIn profile. If they do, find out who has recommended them. You will feel better if you follow good advice.
- Regulation: At least one regulatory body can oversee a serious market participant. The NFA in the United States is the toughest authority in the world (sometimes too tough). In a normal nation, a stamp from the NFA, FSA, CFTC, or another reputable institute does not guarantee that the business is legitimate, but it's better than nothing. Companies mentioned on some far-flung island appear to be suspect.
- Demo account: A forex demo account is the most simple broker check, as previously mentioned. Some robots can actually work admirably, but how can you tell? It's something you can look into. Request to check it out without spending any money.
- Intuition: At the end of the day, you develop an impression of the people on the other hand. As you can see, there are a lot of bad people in the forex business. You should believe that someone is guilty and that they must prove their innocence to you, contrary to the simple rule in court that a person is innocent until proven guilty.
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