Avoiding scams is very important in any sphere of business, forex is no exception here. If you are a forex trader, you are quite literally dealing in a market which revolves around money. As you can imagine, this encourages many opportunists to try their hand in the market. Thus, many scam artists can prop up in the forex market. In this article, we hope to present to you some of the common forex scams to avoid. In particular, what you want to be doing is remaining skeptical about the forex brokers you choose.
Avoiding forex scam robots
There forex robots are automated systems that calculates signals for when they should enter and exit a trade. These forex robots vary in their trustworthiness. Some are made by professional financial advisors, and some are outright scams.
We can give you a few helpful guidelines to differentiate them. For one, the scams will offer disproportionately high return rates. Some can offer 40 times your contribution. Secondly, their strategies focus on very few targets. This means if a loss is made in those currencies, you will also make losses quickly. Thirdly, you should check if the broker is regulated, as almost all trusted brokers will have a regulator.
Avoiding signal sellers
Signal sellers are are services that offer traders tips on where the market is going for a recurring fee. Again, there are many trustworthy signal sellers, but the less trustworthy are very proliferate. Here are some things you should keep an eye out for. Firstly, what their service offers. If they require you to tie your subscription with a broker, you should be incredibly skeptical. See how trustworthy this broker is. Secondly, remain skeptical about their claims. If they boast about consistently high earnings for their customers, they should have the evidence to back that up.
Of course, the most important thing is that you keep a close eye on online reviews for all services you want to try out.