The Forex market is a genuine trading market where the worlds most currency are exchanged. Its anything but a trick in itself. Without the Forex market it is hard to exchange the currencies expected to purchase imports, sell exports, to go on vacations or do cross line business.
Forex Scams Watch Out for Deceptive Forex Profit Taking Strategies
The Foreign Exchange Committee at the Bank of International Settlements computed the net forex transactions to be worth over $5.1 trillion in 2019. With such large volumes of funds floating in a rather unregulated system, having no accountability, forex scams are definitely rampant and on the rise. In fact, according to Commodity Futures Trading Commission, the average forex scam victim loses as much as $15,000.
Forex Trading Scams: How to Spot and Avoid Them
The most common forex profit-taking strategy used by fraudsters is signal selling. A signal seller may be a retail firm, an individual trader, or a pooled asset manager who promises to trade on behalf of the investor. Signal sellers tout their rich experience in forex trading and convince individuals to hand over their funds to them. Unfortunately, some of these signal selling schemes are shams, wherein the investor loses all the money.
Other fraudulent forex profits taking strategies to look out for are:
Phony investment funds
High Yield Investment Program (HYIP) funds have gained popularity in the forex market over the last few years. These funds promise a high level of return in exchange for temporary lock-in of the investors’ funds. Unfortunately, most (if not all) HYIP funds are scams. So if you come across a deal that seems too good to be true, chances are it actually is!
The internet is flooded with advertisements of magic software that analyzes the forex market for you. Such applications are more often than not money-making gimmicks that add no value to your trades whatsoever. And, such tools are generally available on the internet for free.
Finally, to avoid forex scams, watch out for warning signs. For instance, if your broker hesitates to withdraw money from your account, it should immediately wave a red flag despite persistent requests. Remember, making profits in the forex market is about being smart and vigilant.