What is a Forex Scam | Most Common FX Scams

What is a Forex Scam | Most Common FX Scams

The forex industry is generating more than $6.6 trillion a day, which should define how unpredictably successful it is. As millions of people profit from it every day, frauds are here as well to attract hard-working traders to scam their money out of the market. We get complaints from scam victims very often, and we even have many scammers with the exact same name as ours. Once these scammers are established, it becomes very hard to prevent them from continuing their activities.

Who Are The Forex Scammers?

There are so many kinds of forex scammers roaming around to trap you in a loophole of loss. But first, you must know what services scammers try to give you and how they will attract your attention.

Manage Trading Accounts

Many are prompted to offer huge profit potential immediately after the investment. They require a small investment, ranging from $100 to thousands of dollars, in exchange for a 3X or 4X profit return in an incredibly short time. Who are these people?u003cbru003eu003cbru003eWell, some expert traders trade so brilliantly, but as professional traders, they choose to receive large amounts of investment from wealthy people and trade with them to make a good profit. There are hundreds of thousands of people like this if you visit traders’ communities.u003cbru003eu003cbru003eBut among them, many are scammers. They are nowhere near a trader, let alone a good one. So these people promote themselves as pro traders and ask for investment to generate profit without hassle. Eventually, as per our research, all these traders disappear and there is no trace of their existence.

Broker Scam

Countless brokers in the world offer you good leverage to enter and trade in the forex market. Among great forex brokers, there are many, and we especially see it in regionally based brokers who offer very fishy offers. For example, a HUGE amount of leverage against a small amount of investment. For example, the usual market standard for offered leverage is 1:1000 to 1:3000 in forex pairs. But we have seen scam brokers offering 1:5000.

Some brokers continuously change their spreads during the most volatile times, offering huge spreads. During the volatile period of the market, they let the traders trade with a wide spread. This is a perfect and secure way to scam the hard-working traders’ money out of the market. During the news time, brokers’ slippage issues become uncontrollable, and traders lose all of their money within the blink of an eye. These scammers purposefully let the traders lose all and ask for more to cover their dues constantly. This is a nightmarish loophole for a retail trader.

Forex Signal Scammers

This category is filled in the market. As forex trading is getting popular among so many people around the world and people are entering the market frequently, the number of forex signal providers is increasing in parallel as well.u003cbru003eu003cbru003eDuring the initial months of trading in forex, traders always need support from professionals to get used to the market. We have many traders who already have full-time jobs, but as a secondary source of income, they receive our provided forex signals. However, behind the scenes of the forex signal-providing company, there is always one or a group of highly expert forex traders’ teams who are relentlessly analyzing the market and providing accurate forex signals for the traders.

But to receive forex signals, you must subscribe to their recurring plan and pay a good amount of money. This is where forex signal scammers come in. This scammer attracts novice traders with catchy offers like accurate signals and loots all the invested money. Many are even affiliated with fraud brokers who will offer a widespread and great slippage.

Software Scam

If you are aware of MQL5, the platform is filled with scammers offering fraud bots like Automated Trading Bots, Expert Advisors, Trading Signals Copiers, etc. These scammers tend to scam you not only by taking all your purchase money but also all the invested trading amount.

These are the most common scammers you will find roaming around in the forex market and within the trading community that you are in. You never know when and how you will be trapped by one of these scammers.

We are here to help you with it. From now on, we will guide you through the process of finding out who the scammers are, identifying them, and avoiding them. So keep a sharp eye here to learn more about it.

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