Common forex trading scams to keep an eye on, the popularity of Forex trading has influenced the growth of many Forex scams which are trying to trick a lot of new investors who want to start their way to the successful Forex trading. In your way to learn Forex, understanding common Forex trading scams available out there is extremely important to make sure that you aren’t engaged with one of them in the future.
Top 3 Most Common Forex Trading Scams to Watch
Even though the regulation of Forex trading has started to get better recently, the chance still exists for a lot of Forex scams to trick new investors. They typically attempt to promise new investors quick fortunes to be successful on Forex trading through various methodologies. To help you avoid these scams, here are some Forex trading scams that you need to watch out.
#1 Signal Sellers
One of the challenges every new Forex investor or trader faces is deciding which operator to count on in the Forex market and which one to avoid. Signal sellers can be a good example. Typically, a signal seller will offer a system which purports to spot favorable times for trading a currency pair on the Forex market. The system can be manual and automated.
Some systems offered count on technical analysis while others count on breaking news. There are many who employ both of the systems. But the point is that all of them purport to present information which leads to favorable trading chances. This service usually charges you a daily, weekly or monthly cost. When it seems beneficial, some analysts propose that most of them are scam artists.
The right way to decide if a signal seller can provide you benefit is to learn Forex through practicing on trading account or open a paper money with better-known brokers. By working with reliable brokers, you will be helped on making the best decision for your Forex trading. Then, be patient too so that you can determine which one is exactly good for you.
#2 Forex Investment Management Funds
Recently, Forex invesment management funds have grown and most of them are considered as scam. They provide an investor with the chance to have his Forex trades controlled by highly skillful Forex traders that can present outstanding market returns. In a return, there will be a share of profits. What makes it unhealthy is that the investor needs to give up his control over the money.
When you end up joining this scam, it is highly possible for you to get nothing as a return. On the other hand, the scammer employs the investors fund to purchase private islands and yachts. At this point, you should listen well to the rule of thumb on the Forex market: when it sounds too good to be true, it is almost definitely a scam.
#3 Dishonest Brokers
Even though Forex Market is not completely unregulated, still it has no essential regulating authority. When there are many brokers do fairly on the Forex trading, some of them are trying to defraud their customers. That’s why it is important to make sure that you come to an honest broker that won’t trick you on your trading activities. You can research it from their websites.
If you need a recommended broker which is reliable for you to work with, there is DIDIMAX, the first and the best Indonesia brokers that you can trust. In addition to the finest trading platform available, DIDIMAX also offers the best Forex education where you can learn Forex for free. So, if you want to work with an honest broker, don’t forget to consider DIDIMAX!