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Trading Scams You Should Avoid

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  • Trading Scams You Should Avoid

    When trading you must be cautious, first of all to avoid scams: Signal Sellers

    Forex trading platforms nowadays follow algorithms. Thanks to the new technological advancements, these algorithms can provide signals to traders.

    The signals, then, give them ideas about the next price movement of the asset. These systems let the traders position themselves ahead of the curve. Itís like an early warning device that tells you when to buy or sell.

    Now, some brokers who commit forex trading scams take advantage of this system.

    Signal sellers simply offer a system that, they say, identify good times for buying or selling. This system can on their forex trading platforms.

    You can do it manually, where you put the trading info and they provide you a signal. Other times, itís automatic. Automatic systems will put on a trade when a signal shows itself.

    Some sellers depend technical analysis to justify their signals, while others base on news. Many use a combination of both.

    The common ground is that they claim these signals offer you good clues what to do next. Of course, their signals come for a price. You may either pay per signal or itís a part of their brokerage services. Criticisms of Signal Sellers

    Most often, itís easy to criticize such systems. You can simply ask, why would sell signals on widely available info? You would think itís much better for them to use this unbelievable system for their own advantage.

    Of course, there are others that really do provide signals to their clients. But the difference is that these scammers usually disproportionately tout their systems as the best.

    Another important this is this: is it really possible to predict the next move in the market?

    One way to work your way out of this scam is to try their signals using demo accounts. Take some time and see whether itís really as efficient as they claim it to be. Dishonest Brokers

    One of the forex marketís unique characteristics is that it has no real central regulatory body. The spot forex market, for one, is totally on its own. Thereís no regulator for it.

    Thatís why itís easy to see how some brokers try to take advantage of this by not dealing fairly with their clients. Itís not really uncommon for a broker to defraud a trader.

    Luckily, thereís a way to avoid such brokers.

    You can pick a forex broker that also deals with stock market trades. The stock market, unlike the forex market, follow regulatory bodies like the Securities and Exchange Commission. Another regulatory body is the Financial Industry Regulatory Authority (FINRA).

    But donít misunderstand that. You can still trade with a forex broker, as long as it also handles stocks.

    The forex trade doesnít go on any regulation, but the stock trades do. A broker that deals with stocks follow regulations from the SEC and the FINRA.

    They wouldnít risk losing their license for other securities. So, they probably wouldnít defraud you as their forex trader. Phony Forex Investment Management Funds

    First off, whatís a forex management fund?

    This type of fund or trading account where you let an account manager to trade on your behalf. You deposit funds and then the manager does the job.

    The goal of this account is to alleviate your difficulty of in terms of making decisions for your trade. Youíre basically free to use your time for other things. Maybe you want to spend time with your family, or you want to go jet skiing in Tibet.

    This is ideal for those who have another career to pursue. You donít have to personally deal with the trading process. Sounds tight, right?

    Unfortunately, this can be another of those forex trading scams.

    Itís easy to see where the problem lies in here. The fund purports that the manager is ďhighly skilledĒ and will take care of your account. Then, they ask you to basically give up control of your money.

    That sounds problematic right off the crack. Most of the time, you know very little about the fund manager.

    Forex trading scammers usually describe these managers with a record of success, which may be false. Itís also super hyped up on their websites.

    Thereís a huge chance youíll end up with nothing. The fund manager may get away with it and live on your money.

    From: https://www.financebrokerage.com/for...-should-avoid/
    Never be a victim of forex trading scams! Here are some of them, brought to you by Finance Brokerage!

  • #2
    Originally posted by mlawson71
    Sometimes even supposedly regulated companies can scam you. Mediatrix Capital got accused of a $125 million forex fraud by SEC only recently, for example.
    For sure, thats why forums are so vital for us

    Comment


    • #3
      Originally posted by mlawson71
      True. If you know a forex scam, spread the information around!
      Lucky have not faced before ^_^

      Comment


      • #4
        Oh I'm sorry... Did you lost much?

        Comment


        • #5
          I think you can only count on yourself in trading and in many other areas of business because it's not the safest thing to do, and the safety of my money is still the most important thing, I'd rather trade less than trust my money to anyone. Especially since there are too many crooks now.

          Comment


          • #6
            I recently got interested in this topic, it turned out that now there are so many fraudulent schemes that it's even hard to imagine that some small thing can cause you to lose money. That's why you need to think about your safety in advance and cooperate only with those brokers and investment companies that have been tested and can guarantee the safety of their clients.

            Comment


            • #7
              There are some scams, that's real. But that's useless to try find scamms and create any risks. The only way is to read reviews before you use any service and pay your money. Internet has a lot of info, so you should just pay some time googlind and that may save you a lot of money.

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