Forex fraud overview
1) Bad way to start
Before you start trading forex for your first time, you need to consider some key things. Forex trading is a complicated market with very detailed regulations. Before you invest your money, you need to know how the forex market works. You need to understand all the necessary steps to invest in forex with no chances of a loss. You need to avoid making use of websites that promise you good returns with no risks. The few legitimate forex brokers that will offer you good returns will not make promises that they cannot keep.
If you are trading for the first time, it is recommended that you use online trading for the first time to start. Many new traders will use ATMs for trading because they are easy and accessible.
Scam trading examples
Forex fraud is one of the ways where scammers lure in gullible people to let them place a fraudulent transaction. It is easy to spot the initial signs of a forex fraud. These are listed below:
Too good to be true promotion
The Forex world is notorious for advertising a million dollar-yield by simply investing in a single strategy, such as a long dollar position. People are very much willing to believe in these claims and this is where fraudsters capitalise on their gullibility. It would be much easier to convince someone to buy or sell if you simply present them with a promise of making millions upon millions of dollars.
How to avoid getting scammed
Forex users often get scammed with “lure” ads, but the big tricks are in the small print. Buy Forex Traders used to offer initial trades at 0.5% above the average of the industry and never asked for any deposit, hoping that they will lure people into investing in their scheme. A few years later, they put up their offer at 1%. However, the scheme isn’t what it seems. They did it to fleece the newbies in order to get hold of their money and using this tactic, they once again hiked the commission from 1% to 3%.
Others prey on the beginner by offering a “free” demo account that ends up costing you with a monthly fee of $11 for a no-no account. In spite of their promising to teach you how to trade with the demo account, they were actually trying to sign you up for their real account.
This was a very thorough overview of how to get started in Forex trading with a step-by-step guide with visuals and a strategy focused on beginners. Having a strategy when you start trading is important and this approach of it can be very effective, but do not get discouraged if you cannot immediately make money in the short term. Forex trading is not for everyone and not everyone is able to make money trading this way.