How to avoid forex scammers
The forex market is filled with a lot of untrustworthy people that only seek to make money, not from the market, from the potential traders, thus making forex itself looks like a scam. Continue reading to find out how to avoid forex scammers so that you won’t fall victim like many others losing hundreds to thousands ($100s-$1000s) of dollars to these unethical schemes.
Due to the many benefits of being a successful forex trader and the lucrativeness of the forex market, many people with big dreams wanting to live a rich and luxurious lifestyle are attracted, but due to the unpredictable nature of the forex market, many of those dreams are crushed. Some seek help via mentor/ course, while others decide to exploit the eagerness and the unmatched desires of all the others that are trying to learn or earn.
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How does a forex scam work?
In the world of forex, individual scammers impersonate successful traders (usually a signal provider), using the track records [results], name, brand (logo), etc of the profitable trader(s) to attract other potential traders to invest in them, promising them an unrealistic amount of return within a short amount of time.
For example, invest $100 and get $500 with 7 days.
After they receive the money from their victims, the thief immediately blocked the victim.
Some scammers would tell their victims to pay an entrance/ subscription/ processing fee, separate from the required deposit.
Afraid of scaring their clients doing the former, they would be requesting that the clients pay the additional processing fee to collect their withdrawal [profit].
QUESTION: Why not collect the fee out of the profit made? #smh
That question above is an instant red flag for them, which indicates that they should block the client [you] immediately, especially if you were to request your money back. That goes without saying that asking the right questions is a method on how to avoid forex scammers.
How to get your money back from forex scammers
One of the best ways on how to avoid forex scammers is by choosing the best payment method possible. If you’ve been recently scammed and are thinking of forcefully getting your money back, then you are wasting your time. That’s because these forex scammers tend to use either skrill as their payment gateway or to collect the payment in the form of bitcoin, which both are irreversible.
By now you should know that bitcoin payments are encrypted and cannot be traced back to the sender or receiver, hence reporting it would be a waste of time.
While on the other hand, you would think that Skrill being a big reputable company, you would feel safe with them as the middle man in case anything goes wrong. On the contrary, unlike Paypal, they won’t offer any assistance to get your money back due to their policy that any money sent to cannot be refunded no matter what.
In other words, they would let the scammer(s) run off with your money, hence all your complaints would be futile.
How to identify and avoid forex scammers
The number one way on how to avoid forex scammers is by knowing how they operate. From experience, it is not hard to spot a forex scammer because most, if not all of them use the same tactic on all their victims. In fact, there are cases where one scammer is impersonating multiple successful traders.
The following list is a collection of common red flags that indicates that the person you’re talking to has a high probability of being a scammer.
10 ways how to spot a forex scammer
- Promising big profit in a short amount of time
- Uses telegram as a means of communication
- Have poor English
- Be requesting that you pay via bitcoin, sometimes skrill
- Have a high amount of fake telegram subscribers (since you can buy a telegram subscription, in most cases, the numbers are fake)
- Cannot explain their trading strategy
- Have little to no knowledge about forex trading
- Uses fake testimonial videos and pictures in an attempt to persuade you.
- Complete lack of transparency
- Demanding to pay an additional processing fee separate from your required deposit.
How to avoid being scammed
Scammers’ primary targets are individuals who are ignorant of the world of forex. Meaning, a person who genuinely believes that it’s possible to get rich quickly trading the forex market. Hence they the fake profit results and testimony are their biggest weapons that can easily captivate their victims.
Knowing how they operate, you can easily avoid being hook on their bait. The below is a list of ways of how to avoid forex scammers:
- Educate yourself about the forex market thus being able to trade for yourself.
- Have a realistic expectation about earning profit. ie: between 5-20% monthly.
- Go to trusted websites that are moderated by a legal third party entity such as mql5.com for trusted signal providers
- Always search for reviews on sites like Sitejabber, Trustpilot, or forexpeacearmy.com. Chances are that there are people who posted their experience with that scammer.
- Take what the person is telling you with a pinch of salt.
- Avoid making payments with skrill or in bitcoin.
- Choose to do copy trading instead of forex signals.
- If possible, go to the official website of the signal provider and only uses the links provided on their websites.
Can a forex broker scam you?
Scammers do not only come in the image of forex signal providers but can also be posing as a big corporation with a well designed website and professional team to incite you to trust them. In the past, there were more entities scamming traders of their money in some way, shape, or form, such as ridiculously high spreads, hidden commission charges among others compared to the number of individual scammers.
However, over the years, tighter regulations were imposed by respective countries that eliminate most of their unlawful players. though their numbers and actions are a lot less prevalent compared to before, it still pays to be careful.
I recommend using any one of the brokers listed on the recommended forex broker‘s page to trade with a regulated broker so you can have peace of mind that your money is safe.
List of forex scammers:
Have you been scammed or know of someone that has been a victim of these thieves? Help spread the word so other people can avoid falling victim to their schemes by commenting down below the name(s) of any known forex scammer. We will add them to our forex scammer list in our community forum.
If possible, please do tell of your experience, the more detailed the better.