Investors lose millions per year to forex scams. These scams guarantee traders high profits on their investments but with minimal risks. Fraudsters use plenty of creative schemes to steal investors’ money, from creating fake social media personas or ads to websites. They will then disappear after receiving payment and leave investors hanging.
We gathered some of the most widespread forex trading scams, so you will know how to spot and avoid them. We will also let you know the best forex VPS platform to perform forex trading.
Signal seller trick
Signal sellers suggest the best time to buy and sell currencies depending on their market analysis. They typically promise huge profits and successful trades. In return, investors need to pay them for such information.
Scams happen when these firms ask investors for payment without offering suggestions or necessary details.
Forex robot trick
A forex robot is a software system that uses an algorithm to buy and sell currency instantly. An independent agency can test and assess forex robots to see if they work.
Scammers sell fake or untested software that trade randomly and could lose investors’ money. Stay away from robot scams by doing extensive research.
Forex broker trick
Criminals also pose themselves as authorised forex brokers or existing or identical investment websites to deceive people into turning over their money.
Forex pyramid schemes
These schemes recruit new people into investment groups that profess to give data and advice that can make them effective traders.
Pyramid scheme members pay a fee and recruit more investors for a commission. In this situation, the money comes from membership fees instead of forex trading profits. It is tagged as a pyramid scheme because as new members join, one goes up the pyramid and gains more money. When membership drops, the leaders terminate the scheme and get all their money.
Managed forex account trick
Some investment groups provide managed forex accounts, where a forex trader specialist invests for you. Investors pay for this service. The deceit occurs when the swindlers promise to deliver good forex trading services but then take the investors’ money.
Always research any financial website or service before shelling out money. Check if the ones you are dealing with are legitimate and authorised.
Forex Ponzi scheme
Tricksters use this scheme to promote non-existent forex funds that assure high returns over a short period. At first, they will only ask for a minimal investment and pay investors the negotiated returns to make the scheme look like a success. Then, the leaders will prompt the investors to recruit their families and friends to invest too. After enough people have joined the scheme, the tricksters will wane with the money.
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