There are indeed many ways that one can get scammed in Forex. May sound unbelievable to some as we are smart traderers of the modern time, right, and you should not get scammed. Besides, who has got the time (and heart!) to take money from you whilst you’re sitting there doing some unharmful searching on the web?
Yes, all these things ring true but the scammers are smarter than you here. There are many ways where you can fall in to a scam and you may not even be aware of it whilst it’s happening to you. Every year, thousands of people lost their money because they put their trust in these scammers. They simply thought it was the right way to invest, they trusted them, gave them their money and never again heard from the scammers. This is an online trading industry where you can easily meet new people. The scammers grab this opportunity and they will take the money from you.
If you read this article, you will learn about some of the most common ways being used by scammers to make money today, so that you can look out for yourself and protect yourself (and your wallet) from their tricks come the future. With that said, this article is a must-read for the novice traders who have started their career in the investment industry.
First thing first, as a retail trader, you must understand the importance of a professional brokerage firm. Those who are trading the market with a low-class broker will always have the low-cost trading environment. If you look at the professional traders, you will soon understand the risk factors of the market.They are spending a huge amount of money to trade. Unless you have extensive experience in the retail trading community, you should always trade with low leverage.
Secondly, being a new trader you should start trading the market with the demo accounts. Demo accounts will provide you the perfect platform which will quickly help you learn currency trading. As a retail trader, you ought to consider the risk factors of the Forex trading industry though. If you take a huge risk you will never understand how this market works. Instead, learn to trade in a conservative way and you will understand the true nature of the market. Always believe in yourself and trade with logic.
The promise of high return with no risks
In this currency trading, the only thing that is for certain is uncertainty. You do not know what tomorrow has in store for you and you may believe these people when they say you will get a high return on your investment if you open an account with them. People are looking for riskless investment and this sounds good to them. The scammers know it and they use their chance! The traders lost their money and it is also known as Ponzi schemes. In fact, there were many Ponzi schemes used in this industry and the scammers pay you the interest by taking money from new investors. Never trust people if they say you will have high return with no risks on your investment.
The promise of an ever-successful strategy that always works
This is another way in which there is a chance that you will get scammed at the end of the day. Scammers are well aware of the fact that people do not want to work on developing their strategy and they offer people the promise of a Holy Grail. This Holy Grail is a strategy successful in every market that you use and it can never fail. You need to know that you can get this strategy only if you pay a small amount of money to them. Do not pay any money for Holy Grails. They are scams.
Trying to sell software that can predict future trends
This market is always changing with new trends. Every day, traders are developing strategies to adjust to these trends and so isn’t it sweet if there was a software that could do the work, you would think. However, avoid any kinds of software in your trading. The market can only be traded by a human trader, not by some unkown software.