8 Simple Steps to Spot a Forex Scammer

Have you ever tried to use forex signals and ended up falling victim to a scam? Or perhaps… Have you come across multiple signal providers with the same name?

Forex is the world’s largest financial market, and numerous con artists claim to be THE BEST signal providers. They promise you a significant profit in just a few days.

Forex scams typically entice traders with the promise of high returns on investment with little to no risk.

Fraudsters use a variety of plans to trick investors into handing over their money, including social media advertisements and the creation of fake websites.

The Different Types of Forex Scams

1. Point-Spread Manipulation: Computer manipulation of the bid-ask spread in favor of the broker was one of the first trade scams. The broker earned more money by increasing the distance between the bid and sell price to 7-8 pips instead of the usual 2-3.

2. Automated Trading Systems (Robot Scams): It is a new scam in the trading market. It aims to attract newcomers to automated trading, also known as expert advisors, which operates without human intervention. Many of these systems have not been subjected to formal review and testing by a third party.

3. Scams by the Signal-Sellers: A common modern-day scam in which retail firms, asset management firms, or individual traders offer specialized investment advice. Forex scams happen when providers forecast good times to buy or sell a currency pair based on false expertise and wealth promises.

Follow these eight simple steps to identify and avoid forex signal scammers if you don’t want to fall into one of these traps.

Step 1: Website:

First and foremost, check whether or not these service providers have an excellent and registered website. Never look for a forex signal provider on different social media platforms.

Reputable businesses have their professional websites. See if they have a Support Contact. Most importantly, look into their offerings and unique selling points. Scammers will frequently ask you to join their Telegram group directly.

Step 2: Online Evaluations:

Check their reviews on various Review Platforms in this step.

Examine the feedback and see what other traders have to say about them. Then, check whether these reviews correspond to the company’s offerings.

Step 3: Subscription Fee:

Forex scammers will always demand a high subscription fee via unregulated instruments such as cryptocurrency (such as Bitcoin, Ethereum, and others) or non-traditional finance (NFT). In addition, they always try to avoid card payments and PayPal because, for one, you can request a chargeback or refund on your card and bank account, and for another, you can track their location via PayPal. As a result, Forex scam artists will always avoid using these methods.

Step 4: Create Fake Subscribers:

There are always many members in a scammers’ telegram channel. However, based on the most recent posts, there are probably only about 10-15 responses.

What are your thoughts?

Are they Fake?

Yes. Most forex scammers will purchase bogus subscribers for their service platform to give the impression that they are well-known and famous in the industry.

Step 5: Trading Experience and Results:

When seeking service from anyone, transparency is essential—specifically when dealing in Forex. When someone offers to assist you in trading, always request to see their trading history and proof of results.

To double-check if they are telling the truth, request to see their MT4/MT5 history, MyFXBook, FXBlue, or any other verified profile.

Step 6: Risk Assessment:

Scammers will never reveal their risk management or trading strategy to you. Instead, they will claim to be professionals who know what they are doing and ask you to trust them blindly.

Step 7: Partner Broker:

The majority of Forex Services are affiliated with one or more brokers. And, more than often, these Scammers work with similar brokers.

They want to trap you in a cycle wherein you deposit money with their partner broker, the scammers then blow your account, and you may feel encouraged to deposit more money.

Before you select a service, check with the broker to see if the appropriate authorities regulate them. Forex scam recovery will help recover your funds if you approach them for assistance.

Step 8: Social Media:

If you want to find a forex signal provider, look for them on social media or through influencer reviews on YouTube or Instagram.

Also, pay attention to the review comments and viewer numbers. In addition, reputable businesses will promote their services on the most popular platforms, such as Facebook, Google Ads, and Forex Forums.

However, forex scammers can only be found on shady websites and untraceable apps like Telegram.

Conclusion:

Investing money on Foreign Exchange platforms is always fraught with financial risk; there is no guarantee of profit. Scammers frequently promise huge profits with little or no financial stake in forex trading. As a result, if someone promises you huge returns on your investments, it’s probably a red flag.

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