Forex trading scams are one of the prominently growing scams in the market though these scams work so real that even a knowledgeable person can’t recognize them at once. The transaction that occurs in forex is $6.6 trillion per day, according to a 2019 survey. However, the current market cap of the forex is over $2.4 quadrillion means $2409 trillion.
Forex (foreign currency exchange market) is a currency trading platform where you buy and sell countries’ currency by following their trading chart and making a profit when it fluctuates. However, we all know that everything being used on digital platforms gives robbers an opportunity.
Forex scams are where the scammers used to play with the investor’s minds by giving false hopes of getting the highest returns on the investment. Moreover, forex is a game where someone makes money from someone’s loss. However, if you still want to enter the forex market after knowing its consequences. Then go for the legitimate way instead of investing blindly.
This article will discuss how to avoid these online forex trading scams and further explain what careful measures you need to take to survive in the forex market.
9 Tricks to Detect Forex Scams
These 9 tricks will tell you which way to go and which to be aware of concerning forex scams. The tricks are as follows
1. Keep asking to invest in a hurry
If the forex broker-related company you attach with keeps asking you to invest in the company in a hurry, it signals that you need to avoid investing in it. Sometimes these scammers trick you with the greediness of giving more profit and extra bonuses.
2. Riskless business module
If you’re a businessman or familiar with business modules, you’ll probably know that every business comes up with certain risks. However, if the company says there is no risk involved, there is a high chance it’s a fraud, so avoid investing in that company.
3. Giving impossible returns
Before investing, maybe you thought the same I do is how the hack these companies give illogically high returns on my investment though average business returns are just 4 to 5 %. Hence, reverse your train when you see similar signs in a company you’re investing in.
4. Advertisements through social media
We all know that social media tremendously evolves and eases our life in many ways, but some use it for illegal activities like forex scams and others.
These scammers usually trick people on social media by showing flexing things like cars, houses, money, etc., so that a particular one in the eagerness of that luxury invests in these scammer’s firms.
5. Unknown messages
Suppose you got a message from an unknown source saying to invest in their company. Please don’t reply to them. Moreover, do not provide your personal information to them if they ask you to do so.
6. The influencer that sells signals
Many influencers who sell their signals that where to buy and sell forex currency are hilariously fraudsters and doing it purposefully by sometimes giving wrong signals and making money on its behalf.
However, you can also put this in a list of white-collar online forex trading scams where you don’t recognize that you’re getting fooled by these swindlers.
Suppose the influencer has a large audience following him when he says the market will be dumped. People get panicked and sell in a hurry which these influencers benefit from by purchasing from low.
7. Scams you through fake trading application
There are dozens of forex trading applications available on the big stores like the play store android & Apple App Store. But who knows which is trustworthy because this is the riskiest market where you can’t predict any platform authenticity.
However, scammers target people through fake applications with fake interfaces, company information, and charts. Therefore, ensure the application is trustworthy before investing by checking its reviews and feedback on the play & app store.
8. Trap you through referrals
The fraud consensus system works around the referrals system though you can also take it as a pyramid scheme, where they provoke investors on bring in more customers to get more profit. But at last, they’ll dump them so hard that they can’t recover properly because of the liabilities of those whose money they invested in the company.
9. Showing fake companies
Every scammer’s trick is to display fake companies to attract investors and manipulate them. Hence, by telling them that instead of forex, their money was also invested in the companies and uplevel their greediness so that they invest. Be alert of getting into this trap.
What Should You Do If You Got Hooked On Forex Trading Scams
Suppose you get dumped in any forex scam.Then immediately take measures to counter that fraud by following the given points.
- Notify the cybercrime authority and other security officials about your situation right after getting stabbed.
- Make sure you’ve paid with your bank debit or credit card. However, make your bank aware of your condition at the current time so they can take further action against those fraudsters.
According to the policies of many countries, it’s impossible to recover the money. But there are chances you can get your money back. If not, visualize that you’ve highlighted this case so that others should be safe and alarmed about investing in those companies.
Forex Trading Scams Last Verdict
Not knowing forex and entering it might be the biggest nightmare for you. It’s a piece of advice for many instead of forex, do ensure that any source you’re investing in must be authentic and trustworthy.
Forex is the biggest market after gold & silver and is unpredictable means every step taken should be calculated, or you get knocked out.
In this article, we’ve made it easy for you to spot scammers in the first place in the market and describe 9 tricks every scammer uses while scamming. However, these tricks also help you in many aspects regarding your future investments.