Forex scam: What investors need to know

Forex is the world’s most vibrant financial market. With daily trading volume up to trillions of USD. Forex is also an attractive investment field. Brings high profit opportunities to traders. In this article, Learn Forex Trading will provide you with the necessary information. At the same time, avoid forex scam cases, as well as share experiences in choosing reputable forex exchanges.

The information is false forex scam

To avoid being scammed in the forex market. Traders need to clearly understand the following facts about the market.

Is the forex scam transaction real?

Forex trading is a legal investment activity and is regulated by authorities. However, not all forex brokers are licensed or comply with regulations. These forex trading platforms can pose many risks to traders, such as:

• No withdrawals are allowed, or withdrawals are very difficult, late, and require high fees.
• Failure to pay profits, or payment not in full or on time.
• Failure to provide transaction reports, or providing false or non-transparent reports.
• Do not provide inaccurate or unreliable trading tools.
• Providing unreasonable and unfair trading conditions.
• Offering unclear promotions.

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See more: Top 5 best forex trading platform in UK today

Tactics of fraudulent trading exchanges

Fraudulent exchanges often use many different tactics. Here are some of the most popular moves:

• Using advertising channels on social networks, websites, emails, text messages, phone calls… To solicit, advise, and persuade traders to open accounts, deposit money, and trade with fraudulent exchanges.
• Use brokers, consultants, experts, coaches, celebrities, and influencers.
• Use signals, analysis, advice, guidance, training… To persuade, support, and guide traders to trade according to their wishes.
• Using software, applications, robots, trading tools… To control, interfere, manipulate, and cheat traders’ transactions.
• Use promotions, incentives, rewards, bonuses… To attract, entice, stimulate, pressure, and cause addiction, greed, and fear in traders.

Why is there information about the Forex scam

The appearance of forex scam information is not without reason. Below are some reasons for this statement.

Exchanges scam traders

One of the main causes of forex scam information is that trading platforms scam traders. Scam exchanges are unlicensed exchanges. Or fake licenses from reputable management agencies. No clear address, no capital insurance regime, and no transparent policy.

Some scam exchanges have been warned by reputable regulatory agencies, such as NFA, Cysec, FCA, and ASIC. However, there are many fraudulent trading exchanges still hiding, or changing their names, addresses, and websites to continue operating. Therefore, traders need to be careful and research thoroughly before choosing a forex trading platform.

Because traders lack experience in forex trading, they lose money

Another cause of fraudulent forex information is that traders lack experience in forex trading and lose money. Forex is a potentially high-risk market. Requires traders to have knowledge, skills, and experience to be successful.

However, many traders have entered the forex market without enough knowledge, skills, and experience. Or there is no preparation, study, research, or practice in advance. They have been caught up in the temptations, invitations, and attractive benefits of trading exchanges, brokers, signal providers, and training programs.

As a result, they suffered heavy losses, lost all capital, lost all confidence, and lost all hope. They blamed the market, the trading exchange, the broker, the signals, the training… They created fraudulent forex information, complaints, accusations, and curses. , warnings… They have created negative influences, psychological confusion, and negative thoughts about forex.

Traders do not clearly understand policy information leading to rumors of forex scam

Another cause of fraudulent forex information. That is because traders do not clearly understand the policy information of the exchange, the management agency, and the forex market. This policy information includes:

• Trading conditions. Including spread, leverage, margin, stop out, swap, commission, slippage, requote, execution time, trading hours, trading instruments, trading platforms…
• Withdrawal policies. Including withdrawal method, withdrawal processing time, withdrawal fee, minimum and maximum withdrawal amount, maximum number of withdrawals in a month, number of free withdrawals in a month…
• Privacy policies. Includes how to protect customers’ personal information, accounts, and transactions, how to handle incidents, complaints, and disputes, and how to contact customer support…
• Promotion policies. These include conditions, limitations, constraints, application deadlines, how to participate, how to receive, how to use,…

Many traders did not read carefully and did not understand clearly. Not asking for clear information about this policy before trading with a forex exchange. They were surprised, disappointed, and angry when they encountered incidents, problems, and losses due to non-compliance with this policy information. They thought that the forex exchange was a scam, a fraud, and unfair to them. They have created fraudulent forex information, complaints, and criticism about forex.

See more: Registering Exness broker account on your phone

Experience in choosing reputable forex exchanges to trade

After stating the causes and tactics of forex scam exchanges. This article will share some experiences in choosing reputable forex exchanges to trade.

• Check the financial operating licenses of the forex exchange. This is the most important factor in evaluating the reputation and quality of a Forex exchange. A reputable forex exchange must have an operating license from one or more reputable regulatory agencies. These include NFA (USA), Cysec (Europe), FCA (UK), ASIC (Australia), FSCA (South Africa).
• Check the trading conditions of the forex exchange. This is the factor that affects your trading efficiency and costs. You should choose a forex exchange with trading conditions that suit your needs, goals, strategies, and trading style.
• When trading, traders need to understand forex terminology so that transactions can take place smoothly and effectively.

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So the article on Learn Forex Trading has informed you about forex scam information. This is an undeniable phenomenon, but it is also not a reason to give up forex. Forex is still an attractive investment market, offering high-profit opportunities for traders. Hopefully, this article has provided traders with useful knowledge. Thereby, helping you avoid risks and losses caused by the forex scam.

FAQs:

How to check the operating license of the Forex exchange?

You can check the operating license of a forex broker on their website, on the website of the regulatory agency, or on websites that evaluate and compare forex brokers.

Why are there rumors of the Forex scam?

forex scam information originates from traders participating in forex scam exchanges. Or lack of experience leads to losing trades and thinking that the forex market is a scam.

Is the forex scam transaction real?

Forex trading is a legal investment activity and is regulated by national authorities.