Forex trading has a very high risk of being a forex trader scam. The currency market is incredibly volatile and there are a lot of factors that can influence the price of the currency. These factors can change at any time, and so there are no guarantees of profits in the currency market. Any broker who promises you that you’ll make money overnight is most likely peddling a scam. So how can you avoid a Forex trader scam?
The most common forex trader scam is called the signal-seller scam. Many forex traders, especially beginners, are easy prey for signal-seller scammers. These scammers usually disguise themselves as managed account firms, retail companies, or pooled asset managers, and claim to know when to trade a currency pair. The trick is to get you to open an account with a broker so that the signal-seller can use the signals to make money for you. Scammers will use tactics that require real funds to trade on your behalf.
Forex scammers will try to contact victims in several different ways. They will cold-call you and insist that you deposit money immediately. They will tell you that they are highly qualified managers, but they’ll show you their excel tables and tell you that they guarantee profits. This is a forex trader scam. The only way you can protect yourself is to recognize the signs and keep away from these brokers. It’s a good idea to read reviews about the different brokers to ensure they’re legitimate.