Forex scams are on the rise again, and this time they’re targeting innocent people. If you ever feel like you’re being scammed, don’t be afraid to reach out to your financial institution or the cops. The best way to avoid forex scams is to be aware of them and learn how to spot them early. Here are some tips for staying safe when trading Forex.
Know the difference between a Forex scam and a real deal
Avoiding scams is easy when you know what to look for. The best way to avoid Forex scams is by having an understanding of what a scam and a real deal are. A scam is an act of tricking someone into parting with money or assets in exchange for something that could not be delivered.
A real deal is the actual, tangible product or service that has been promised or carried out as a result of an agreement, such as a home purchase, car loan, or business venture.
Don’t fall for scams in the first place
Trading Forex might seem like a great idea. You can earn a lot of money, and you don’t have to learn how to trade the markets. But there are many scams out there that try to convince you it’s easy to make money in this market. Some of those scams are so blatant they should be illegal. There are also some more subtle scams that work by convincing you that your broker is really smart and knows what he or she is doing. And then they run away with your money before you have time to catch them.
Don’t let yourself be scammed online
People turn to websites like ForexTrader.com and ForexBroker.com looking for information about Forex trading. Unfortunately, scams are on the rise again, especially for people who have been scammed in the past. Don’t let yourself be scammed online!
No company or individual can guarantee that you won’t be scammed if you trade with an independent broker. The Federal Trade Commission (FTC) is reminding all consumers to keep an eye out for fraudulent traders who promise high returns while using “phantom” companies, deceptive marketing practices, or outright scams to lure in consumers.
Use your financial institution to protect yourself from Forex scams.
If you’re a Forex trader and you’ve fallen victim to a scam, legal or otherwise, it’s always best to call your financial institution for help. Your bank or credit union can offer advice and support if you have any questions.