WikiFX has been investigating scam online trading brokers and this article is one of the methods they did to know who are scammer, online trading brokers. Foreign trading, often known as forex trading, is the trading of several foreign currencies listed in pairs known as forex pairings. Individual investors or big organizations may be engaged in trading. Currency trading occurs in the foreign exchange market, and the parties benefit from volatility in currency exchange rates. Because of the frequent price fluctuation of currencies, forex traders find forex trading profitable in the short run.
Although the foreign currency market is the world's largest financial market, it is also extremely uncontrolled. As a result, it has gradually become a sanctuary for numerous forex brokers that entice forex traders with dubious investment plans.
Is your orex Broker a Swindler？
Forex fraudsters take advantage of forex traders' lack of information and attempt to swindle them with incredible investment prospects. They are always developing with the currency market and devising plans that are nothing more than fraud. As a result, before diving into forex trading, it is critical that you completely grasp the many sorts of forex scams.
Scams Involving Robots
This is the most typical kind of forex fraud. Forex robots depend on currency performance in the past to conduct trades in the absence of a forex trader. Forex fraudsters make use of this aspect to convince inexperienced forex traders that their bot-based platforms would allow them to maximize their earnings. Ideally, forex traders should avoid becoming victims of this fraud since the vast majority of such sites have never been tested.
Scams Involving Signal Sellers
Another common scam in which forex fraudsters provide prospective forex traders accurate information about good trading periods in exchange for a large fee. Forex signal selling is a process in which forex brokers forecast currency price movements based on market trends and their trading knowledge. These indications are used by forex traders to make trades. However, the majority of the cues are incorrect, and traders wind up experiencing significant losses since their forex broker fails to validate its information.
Scams in Forex Trading
There are several forex brokers that contact novice forex traders with deceptive ads. Most of these brokers are unlicensed, but they attempt to get forex traders to invest in forex investment funds by promising better profits. Forex traders who expect maximum earnings while not trading themselves end up losing their assets just to discover they have fallen victim to another trading scam.
How to Identify a Forex Broker Scam
It is quite usual for ambitious forex traders to achieve success in forex trading. Nonetheless, customers should avoid being misled by the forex broker's unreasonable expectations.
Misleading forex trading plans, being unregulated by any financial institution, and overstatement of 100 percent guaranteed profits are all red flags that your forex broker is a fraud. Aside from that, below are a few other ways to identify a forex fraudster.
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Financial guarantees with minimal or no risk
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Guaranteed and overnight success claims
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False records of forex trading success
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Unresponsive to concerns about trading (poor customer service)
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The company has a bad reputation for not enabling forex traders to withdraw monies.
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They have been unable to produce any substantiation of their trade assertions.
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Request your contact information (email, contact number, home address)
If your forex broker checked any of the above boxes, it is a warning that you are dealing with a fraudster. Furthermore, you should think about taking certain preventive measures to avoid a forex fraudster, such as:
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Finding a Forex Broker Who Is Regulated
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Conducting online research on the forex broker
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Examining consumer feedback and testimonies
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Examining all of the contract's tiny print
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Begin trading with a little investment.
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Understanding Margin Trading
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Inquiring about the trading history of the forex broker
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Make certain that you can trade when the market is turbulent.
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Inquire with forex brokers about their trading policies.
Blacklist Forex Scam Brokers 2022
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24FX |
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24option |
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770capital |
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ACFX |
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Adamant Finance |
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AGM Markets |
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AlfaTrade |
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ATIORA |
Conclusion
Forex trading is a lawful financial activity in every country across the world. It enables forex traders to generate large gains in a short period. A little lapse in forex trading basics, on the other hand, might put rookie forex traders in jeopardy. It is not that the forex market is rife with fraudsters; nonetheless, you must be better equipped to recognize a scam and prevent being a victim of one.
The easiest method to do so is to understand how forex trading works and to perform your homework on the forex broker. Remember, you're in forex trading to earn money; don't squander this chance because of a dishonest forex broker. To prevent any scams and frauds, review the list of Top Forex Brokers and choose one from it. You can also compare the best Forex brokers in the UK.
