One of the biggest misconceptions about Forex trading is that it’s a scam. No, it’s not. Forex trading is not a scam. However, there are deceitful people who use Forex to fool and steal from innocent people. They take advantage of the business’ honestly great benefits and promising returns, so that they can rob money or data. That’s when Forex scams are born.
Unfortunately, many people do get tricked. It’s terrible because scammers con hopeful traders into investing a lot of money in them, making everything seem legit, when it’s not. To make things worse, there are various patterns and types of Forex scams. Yup, they come in different forms, and most of the time, it really seems almost impossible to know that they are fakes.
To help you dodge and slash the fangs of Forex fraudsters, here are 5 warning signs to identify and avoid Forex scams!
1 – Online or SMS offers out of nowhere
Do you sometimes or often receive promotional text messages from unknown phone numbers? It’s something that many people experience. While most do not care and just ignore them, some get curious and preyed on.
Online or SMS offers inviting you to trade Forex, to use a Forex trading tool or to work with a Forex broker, that pops out of nowhere could be a sure sign of Forex scams. If someone introducing themselves as a Forex broker or expert, with an unknown contact number, reaches out to you all of a sudden, and you don’t even know where they got your number, be suspicious.
Their online or text message typically contains a link which they are telling you to click. Be very cautious. Do not thoughtlessly click that link because one click might give away your personal details and your device and account passkeys.
Authorized Forex brokers, coaches and companies do not randomly get and use anyone’s email addresses or phone numbers for online and SMS promotions. They do that only if the person subscribed to their email notifications, has given consent for their cell phone numbers to be contacted, and/or if the person once inquired about their services.
2 – Lack of concrete information
Countless Forex trading companies are present out there. Many are totally high-quality and worth your time, money and confidence! Because of the innumerable platforms, tools, brokers, coaches and traders in the world, some aspiring traders tend to just be complacent and choose anything and anyone without proper research and assessment. You need an in-depth examination of a certain Forex trading agent or instrument before availing of their service. That’s how you will fully discover and understand what they are all about and whether or not they are real.
With that being said, lack of concrete background information is a weighty reason to be doubtful about them. If they cannot give you solid and reliable data about what they did, do and will do, that’s not good. Most likely, they are Forex scams.
Furthermore, don’t be deluded by pro-looking Powerpoint presentations and formal-looking text documents, that Forex fraudsters use to magnetize aspiring traders. They triple the effort in visuals, but the substance does not give what traders need.
Don’t even be hopeful that they are not when they cannot even give you specific and definitive information. Limited, insufficient and vague provision of information tells you that it’s a scam!
3 – A guarantee of riskless investment
In any kind of business, there are some risks that one would have to take for a chance to succeed. That’s true in any industry. In Forex trading, it’s the same. Speculation based on thorough analysis and evaluation is needed, yet again, that does not guarantee wins because the market moves, and you are only speculating.
That’s why if someone presents themselves as a Forex expert, yet they guarantee you of a riskless investment, they are nobody to put your trust on. If they vow that you will only have smooth and trouble-free deals from beginning to end, never talk to them ever again. They are scammers. Risks are part of trading Forex, and they are inevitable! Saying you can get no risk at all, investing in it, is just pure deception.
4 – Pushy marketing
Marketing aims to grab the attention of potential clients and to make them want to work with a service provider, however, it is and must not be too assertive and forceful. It should not be intrusive to one’s own choices and decisions as well.
Pushy marketing is another red flag. If a Forex broker company is too aggressive in the way they want to get your approval and to get you as their client, that’s totally improper. Especially if they become meddlesome in other factors you personally consider before trading Forex or working with them, don’t think twice about leaving them.
This is a clear-cut sign of an illegal job. Why? Because if a Forex company is certified, exceptional, reputable and 101% trustworthy, it will not need to pressure or obligate potential clients to hire it. Their credentials, background and plans are positive enough for people to depend on them.
5 – An assurance of wins and big profits
Last but probably the biggest sign of Forex scams is an assurance of wins and big profits. As you know, many people easily get attracted to a business the moment they hear that it’s easy to succeed and the gains are huge. That’s the main reason why Forex scammers do what they do.
Yes, Forex trading has wowing benefits, and traders really can profit enormously, however, that can only happen if and only if they succeed. Remember, the other side of the coin is failure, and many also fall there, having the wrong trading techniques and choices. There are great fruits when you succeed, but there could be terrible consequences when you fail.
What’s more, it’s not easy to succeed in Forex trading because there are a lot of things to do before, during and even after every trade. From learning the business itself to actually doing it to responding based on the results of your trading actions, everything takes a huge amount of time, money and effort.
No matter how renowned a Forex trading company might be, it cannot seal a sure win. Only scammers say they can do that. Keep that in mind.
Forex scams are completely damaging to the bank accounts, to the emotions and to the future of those who are victimized. That is why it is very important to be wise and keen to detect and crush them down even before tricksters take a chance on you. Prevention is better than cure, as you know.
Keep these signs in mind whenever you are looking for a Forex broker, a Forex mentor or a Forex trading platform provider. Be meticulous and alert. Don’t be fooled. Be a smart Forex trader, even if you are a beginner.
ABOUT THE AUTHOR:
Nicole Ann Pore is a writer, an events host and a voice over artist. Quality and well-researched writing is her worthwhile avenue to enlighten and delight others about things that matter. She is a daytime writer for FP Markets, one of the leading forex brokers in the world. Nicole graduated Cum Laude from De La Salle University Manila, Philippines with a Bachelor’s Degree in Communication Arts.