Know More about Forex Scams
Forex trading is a well-known trading market that promises good investment opportunities with amazing returns. But it is a complicated market where the trades are not easy to understand. Even experienced Forex traders might find it difficult to deal in this market and this is where the Forex brokers might find opportunities to scam the investors. Trading is a risky market with a lot of terms and conditions, and without proper knowledge, it can be difficult to understand where we are losing our money. The Forex market has seen many different scams; some of them are as mentioned below.
Scam 1: Fake Brokers: You might have come across advertisements in newspapers, radios and various other places, where the brokers promise very high returns. They also create their websites with fake contact information, customer data, customer reviews about how they earned a lot of money investing into the Forex trading. They even put in information about how the market is going up and big returns at expected at lower risks. But in reality, this all is a scam to lure customers in a trap.
Scam 2: Fake Funds: Similar to fake brokers we can also see fake investment schemes often known as High Yield Investment plans, which guarantee high-level returns, for using your money in their funds. The idea behind these funds is to use money from tomorrow’s investors to pay the yesterdays investors. And once these funds stop getting new prospects, they disappear from the market.
Scam 3: The automated robots: This is one of the most common scams in not only the Forex market but the overall investment market, where you can find a lot of new automated software that claims to provide you fast and reliable ways to get good returns. One such scam is the Gatesway software that promises very high returns but does not work as expected. It also claims to be founded by a very well known personality, but in reality, the person is not related to the automated software by any means. It is difficult for people to understand if the software is really working as mentioned on the websites and hence many investors get trapped in such scams losing a lot of money.
Bottom Line: It is difficult to predict the future in any type of trading market. So if some scheme or broker is promising you certain returns, understand that it could be a scam. Stay alert, read about the scams on various websites and do not trust anyone blindly just because they are promising returns.