How Forex Fraud Happens
Let’s take a closer look at how Forex frauds happens:
Fake Accounts
Fraudsters will usually create fake accounts and use them to trade, as they are not visible and it is easy to act without being detected.
The advantages of trading without a fake account are obvious: you can monitor and analyze your activity without alerting your opponent, and you won’t end up losing money as a result of the other party not following the rules.
Scams
This happens when the person who used to trade in this market decides to expand to different markets with the same trading engine and starts offering fake trading tips.
He will also teach you a certain trick about how to do an intraday on the same token that he did on the previous market.
What Types of Forex Fraud Exist
There are many types of forex fraud, though some of them are more popular than the others. These are also quite misleading and open to interpretation. Here is a list of some of the common types of forex fraud:
Phishing: It is one of the most common types of forex fraud. A fraudster tricks you into sending him your personal information, sometimes with the promise of high rates of returns, all to be used for online purchases or online gambling. You won’t find a conman in this game who won’t say they have something to sell.
Banking Fraud: In this fraud, the crook sets up a false account at your bank and then takes your money to buy more items, using it to buy up an in-demand asset that they wish to turn a profit.
Why The Forex Market Is Attractive to Scammers
Despite the fact that the market is well known for being risky for beginner traders, the temptation to make quick cash out of what could be an essentially long-term earning opportunity is strong. That’s why scammers are busy making money out of newbies. If you would like to know why the forex market is so popular for the type of people who find it easy to scam people, here are a few of the reasons.
Slow At Approaching Profitability
In the case of the forex market, one of the reasons for the low profits is the fact that most people trying to make money do not stick with it for the long run, they take a few days to realize that they have lost everything. That’s why it is hard for them to make much profit in the short run. As a result, they quit after a couple of days.
The Risk of Forex Fraud for Traders
The risks involved with this market are mainly related to the opportunities to profit from fraudulent traders. Often, you will be told by amateur traders that they have been making millions of dollars in a short period. They may provide you with this kind of information even after promising to pay you between $1,000 and $10,000 as commission. But a full proof example of this type of fraud is outlined in this Forex Scams post. Many seasoned traders who have taken the time to do their due diligence will warn you about people who try to scam you out of your hard earned money. This can be either by promising high profits or by providing unrealistic promises of quick success.
You should have full faith and trust in the professional traders that provide you with the right guidance.
What To Do If You Believe You’re Being Scammed
If you believe that you are being scammed by someone promising to make you rich on the Forex market or Forex has been the cause of a decrease in your networth, here are some quick ways that you can know whether you are being scammed or not:
Check that the payment terms on the offers that you’re receiving are reasonable and that you can actually pay up on time for the services you are paying for. Keep in mind that paying up before the services start is bad for your reputation.
Be wary when it comes to “buy low sell high” type deals and deal with genuine ones.
Check if the website that you are buying from is legit. Legitimate websites have FAQs and have high-quality information that should never be misleading.
Conclusion
This is a big question for many people: Do I really want to learn forex? And my answer is Yes! The possibility of making good money is quite good and there are very few things as lucrative as the forex market. The forex market is based on one of the most accepted subjects in the world: the dollar.
The dollar has been and will continue to be the world’s most popular currency because it is universal and is accepted in every country. This creates a solid base for an exchange like forex where you can buy and sell dollars just as easily as you can buy and sell stocks. There are very few things that are better than a legitimate and legal way to make money in your hands and with the understanding that you can at least take a year to make a decent amount of money.