May 26 2020 5
Many people have asked me constantly whether certain forex trading courses/services/robots are forex trading scams or not. Well, it is impossible for me to know all of them as well as accuse anyone. The accusation is the job of the law. I can only provide you with the signs of forex trading scams so that you can investigate and know how to avoid forex trading scams.
This article is based on my experience and our BRKV team’s knowledge about the forex market. We are not trying to accuse or prosecute anybody. Any false accusations on us will be reported to authorities. Without further ado, here are 7 signs of forex trading scams.
The result is too good to be true
There is a saying: It’s too good to be true. If somebody shows you their trading results without proof (trading reports or analysis results…) that have enormous profit (10 to 20% per month for example) continuously in years. You’d better stay away from them. Those services are like a delicious and attractive piece of cheese. However, this piece of cheese is sitting on the mouse trap. And you are the mouse in this story.
To deal with this kind of forex trading scams, you should ask for confirmation from the broker (most regulated forex brokers can provide this). Moreover, the profit has to be stable. If a trader can make 100% profit in one month but lose 200% in the next, it will be still in vain.
If you can easily find your service provider (forex teacher, forex signals provider, independent fund manager…) sharing photos of supermodels, supercars, yachts, cruise ships, or their photos with a pile of money, it is very likely that you are walking into some forex trading scams. The simple explanation is that they are showing a “fake” promise in order to attract more investors. This is basically a marketing scheme. I have seen online shops posting pictures of fake customers and fake delivery so that people will think they are a good store.
Secrets to succeed
If they are advertising a secret recipe to success, you should stay away from them as well. There is no secret to succeed in this market. There is no shortcut. Every single successful forex trader made their way to their goals by learning and practicing in years.
Services without regulation
There are still many countries in the world who have regulated any forex services yet. As a consequence, all of the service providers as well as the forex mentors in those countries are running business in the shadow of the law. Not only do we have no idea about the quality of the services, we also have no protection from the law in case something happens. In other words, these forex services can be even more riskier than us trading forex ourselves.
These days, it is not very difficult to find information about a certain individual on Facebook or Google. If your service provider has a history of forex trading scams or any accusations about them, it’s best not to use their services. I tend to not judge people by their past but in the forex market, credibility is something hard to earn but easy to lose. The investment is your hard-earn money, so you need to find someone reliable to trust. How to avoid forex trading scams like these? Well, everytime you decide to use a forex trading service, do research thoroughly on every social media channel before making any calls.
Or no past at all
I have seen many people that were praised to be financial experts, forex trading masters, trading wizards, the king of forex… but when I searched their name on Google, I found nothing. No confirmation on any kind of media or third parties. In this market, you should only do business with someone who is mentioned in big newspapers or trusted, famous forex trading forums. Do not trust some “experts” that you can’t find any information about on the Internet. It is a kind of forex trading scams as well.
Too many bonuses
The most basic forex scam from a forex broker is that they offer too many bonuses. A forex broker with too many bonuses is usually a small and not very well-known one. Because the only way they can attract more customers is using bonus. They don’t have good trading conditions or prices. You should not trade with brokers with too many bonuses.
The aboves are my summary of the signs of forex trading scams, extracted from the knowledge and experience of the whole BRKV team. Of course as the market gets bigger, there will be more and more tricks and moves from those scammers. If you know any other signs, don’t hesitate to comment below.