Forex Trading Scams – things you need to know

SCAM is always there, where there is MONEY. This is just a fact of life. Sadly, due to the very nature of the online forex trading industry, trillions of dollars being exchanged each and every day, and likewise, forex trading scams are happening on a daily basis also.

So how do you spot forex trading scams before they bite you in the wallet? We’ve compiled a list of handy tips which might save you in the long run.

Spotting a Forex Scam

Thankfully, most forex trading scams come in one form managed accounts. Now, we want to make this very clear from the outset: not all Forex managed funds are scams. In fact, there are a number of managed funds which are genuinely profitable.

In the past, many traders have had vast success with managed funds. But do you actually know what they are? In essence, a managed fund is a pool of money, where a single trader (or a group of professionals) places ‘buy’ and ‘sell’ orders with the groups’ money, on your behalf. That means that you trust them to make trading decisions which reflect your trading ideas.

As you can imagine – a large level of trust is needed here. For a managed Forex fund to be successful – the head traders literally need full access to your account, and they can basically do anything they want to with your money (except withdraw it).

How Forex Scams Work

If you are unlucky enough to invest in a managed fund scam, there are a few obvious signs which might follow. Take a look at these indicators:

  • The fund makes extraordinary profits well beyond what you expected.
  • The website of the fund mysteriously disappears now and then.
  • The contact details for the fund managers are missing or incorrect.
  • Performance records are inconsistent or incomplete.

These are the best ways to spot a Forex scam. If you see any of these things – you should think twice about investing your money in a Forex Managed Fund.

Of course, these are not the only ways to spot a Forex scam. The best way to prevent yourself from falling into one is to read reviews of different Forex programs on the internet before committing your money to a particular one.

This way, you will be able to see what other people think about the program, and how their experiences have been. You can bet your house that if someone has been scammed, it will be streamed to the ends of the earth for you to hear about.

Learn more from our forex blog to be updated with the Forex Trading Scams and make your journey safe in online forex trading.