How to Protect Yourself Against Forex Broker Scams? If you are discouraged because it seems that brokers have all the advantage, rest assured that there are a few simple measures to profit without being swindled.
If you do an internet search on about forex broker scams, the quantity of results is overwhelming. There are many unprincipled brokers who should not be in business.
Recently, the forex market is slowly becoming more regulated.
People who are interested in forex scams, money scams and general trading scams are always trying to find fresh and inventive ways to take advantage of new traders.
However, there are two major types of forex scams that people usually suffer from.
The first step in refraining from a scam is by understanding them.
1. Forex Robot Scams
A forex robot is a trading program which uses algorithms, or lines of computer code, as technical signals to enter and exit trades. Naturally, forex robots are made using expert advisors, or EAs, within the well-known MetaTrader suite of trading platforms.
Of course, not all forex robots are scams. Searching online for forex robot scams list may help you avoid some of the known scammers. However, here are a few things to watch out for to avoid any forex robot scams you may come across:
- Very High Percentage Growth Returns
– There are some forex robots that are advertising systems that should over 4,000% return in just a few years. This may seem fantastic. Just a reminder to always check on your possible profits before investing.
- Undiversified Scalping Strategies
– Market conditions change, and if the system drops more per trade than it wins, it will only take a few losing trades to destroy any accrued profit. Be careful!
- Using Unregulated Brokers
– Unregulated brokers, do not have to abide to any rules but can behave in any manner they see fit. Always check if your broker is a licenses and regulated broker to avoid any destruction.
In the long run, if you are taking into account using a forex robot, then consider it like a business rather than make an emotional decision. Begin with an online search regarding forex robot scams list and then do your own investigation or examination on that thing.
2. Forex Signal Seller Scams
Forex signal sellers are persons who send out trade ideas which usually comprises a currency pair, direction, entry price, stop loss and target levels.
There are multiple things to pay attention for, so you don’t experience these kinds of forex trading scams and money scams:
- Subscription Fees
– Individuals may market you amazing results without any verification. Before paying high or starting out low with the use of credit or banking details, go read the review. These are indicators if it is a scam or otherwise get you to pay for a subscription you don’t need or want at all?
- Broker-Tied Signals
-Some signal sellers offer you trading signals, but only if you sign up with a specific broker. In advance of getting involved in forex trading, perform your own due diligence. Avoid being scammed! Do your research first and learn how to choose a reputable broker.
- Unverified Results
– When your forex signals have made a high percentage earning but if they can’t show a confirmed track record it means they’re not trading the signals themselves which is clearly a warning signal in itself.
The key to prevent any type of currency exchange scams, money scams or trading scams is to be attentive and aware of all your actions before being committed to it then suddenly the outcomes will depress you.