One of the best ways to avoid a forex scam is to never invest with an offshore broker. These firms don’t have to report to the CFTC or NFA and can disappear with your money if you confront them. This is why it’s so important to check the company’s registration number and phone number before you invest. It’s better to be safe than sorry. Here are some tips to help you spot a forex scam:
First, stay away from unsolicited messages. A Forex scam is typically a marketing or advertising message asking you to provide personal details to obtain an investment opportunity. Often, these messages appear in the form of social networking sites like Facebook and Twitter. They often contain pictures of popular celebrities, which is meant to pique the interest of viewers. If the message seems too good to be true, it probably is. However, it’s important to be suspicious of unsolicited emails or phone calls.
When it comes to forex scams, you must be careful. This type of scam typically involves offering unrealistic returns. Despite the fact that Forex scams have fewer victims than ever, you should always choose a registered broker. Be wary of double-or-nothing schemes. In volatile markets, you should also beware of random phone calls from foreign countries. For example, a Nigerian prince in Ghana might offer you a 100 million Dollar investment for ten thousand dollars.