Forex trading scams are not new to the industry. With more and more people looking towards the FX market as the main source of income, trading is sometimes considered a kind of fraud. This fact made many people feel confused and reluctant about the industry in general while trusted and reputable platforms are often associated with trading scams, which is not true.
Forex trading is legal. It has nothing in common with fraudulent niches although you will still learn how to identify trading scams and protect yourself from them.
The simplest way is to opt for a fraud advisory established by the Commodities Futures Trading Commission. It contains some baseline thesis and ways to keep beginners protected from potential fraud. Additionally, there you will find a set of questions that help to identify an untrusted broker alongside outlines that make it possible to pinpoint a potentially fraudulent transaction.
We decided to make an ultimate blend of our expert recommendations and tips from that advisory to make a list of tips that will let you easily identify Forex trading scams:
Performance is not supported by live data. As a rule, trading scams use only historical data to back good performance. At the same time, a trusted and time-tested broker or signal provider is never afraid of showing the portfolio with current trades, performance stats, strategies, and other crucial parameters. The same factor refers to lacking pieces of evidence on prior success and performance.
After we have learned how to identify trading scams, we need to figure out how to keep ourselves protected from them. The following tips will let you avoid irresponsible trading problems and keep your funds safe from fraud.
Use the demo account. It is the fastest and safest way to learn how to trade without hurting your wallet. Here you can use virtual funds and invest them under real-market conditions. In other words, every order you execute is very close to what you will have to face in reality.
Feel free to use these simple tips when not only to avoid trading scams but also when selecting a trusted and reliable broker.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.