Today, online scams and frauds are prevalent on the internet. Since anyone can post, create, and communicate online, many people have developed ways to trick people into believing they’re the real deal. Sadly, if you’re not careful enough, you could fall into this scheme, especially if the scam looks highly believable.
There are many reasons it’s critical to be careful in choosing platforms to use on the internet. One is the financial aspect that many of us are utilising daily. Since financial services have become digital, convenient, and seamless today, scammers have also become more creative in tricking people into investing their money in them.
Since financial activities like stock acquisition, forex trading, and cryptocurrency trading have become accessible, many scammers are keeping up with legal platforms. According to research, people trade over three trillion dollars daily in the forex market. Since many people put massive amounts of their money in the market, the platform has become enticing to online scammers.
If you’re one of the many who’s been wanting to start forex trading but are weary of online scams, this post is for you. Here are seven tips on how to avoid trading with a forex broker scam.
1 – Ask people you know who are trading in forex about the platforms they use
If you’ve been thinking of starting forex, you’ve likely come across it online or influenced by the success stories of people you know. With that, start by asking the people you know about the forex trading platforms they’re using. After all, the people you know won’t let you trade on a scam and unauthorised forex trading platform.
However, just because they suggested a platform doesn’t mean you need to use it too. Research and get to know the trading platforms they’ll recommend and ask about their pros and cons. Don’t use the platform immediately just because most people you know are using it. It’s nice to have some recommendations, but it’s better if you’re familiar with its uses for your benefit.
2 – Research the leading forex trading platforms worldwide
Now that you have an idea of how the forex platforms people you know use, it’s time to get to know the platforms professional traders use. With that, you should also research the forex trading platforms that are used by long-time traders worldwide.
By researching other trading platforms, you broaden your options and compare one platform to another. Even though all platforms can help you in your forex trading journey, each offers perks and benefits that might be unideal for everyone. By researching, you’ll find the best forex trading companies you can trade with–and the best advantages that could work with you.
3 – Learn about forex trading by reading and joining online classes or training
People say the best way to avoid scams is by educating yourself about a topic. When you know the nature of the market you’re entering, it’ll be hard for scammers to convince you otherwise. How can they trick you into investing more money than you need when you know how much your initial cash-out should only be?
If you’re only thinking of asking the people you know who trade for tips and tricks, this is your sign not to only rely on their knowledge. After all, they’re like you, who are still trying to navigate and grasp how to strategise in forex. Instead, you should learn by reading articles by professional traders or joining online classes or training if possible. Don’t take this third tip lightly. After all, knowledge is power.
4 – Check if the forex broker company you’ve chosen is regulated
If, after learning about forex, you’ve finally decided to try it, you must first check if the broker company you’re eyeing has registration from the regulatory board. Unfortunately, even forex scammers claim that they’re regulated by a regulatory board even though they’re not.
But thankfully, there’s something you can do to verify if their claims are legitimate. You can simply go to the regulatory board’s website and check if their registration number is on the board’s list. But of course, please verify the regulatory board of the forex broker company as well. There are many articles online where you can see the list of trusted regulatory boards for forex. If you take the time to learn about the market, you’ll know this information.
5 – Understand that scams come in many forms and are not limited to one
Unfortunately, we now live in a world where scams come in various forms. If before, we only had real-life people conning us, today, we also have the technology. Sadly, a simple link, click, or subscription can trick you into spending money. The worst-case scenario is getting hacked online.
As you learn and navigate the forex market, understand that scams are everywhere. It could come as a subscription offer, unrealistic marketing messages, or a request to deposit a specific amount. So stay vigilant, wise, and educated as you find your way in forex.
6 – If you’re not confident to start alone, consider working with a forex manager to manage your account for you
If, after doing the five previous tips I shared, you think that forex is too complex for you, consider working with a forex manager. Other people refuse to try forex trading because they don’t have the time to manage their accounts and learn the market. If you’re one of them, that’s okay.
Hiring a manager to manage your accounts in forex comes with many advantages. You’ll also avoid wasting large amounts of money since a professional will strategise for you.
7 – Expect disappointments and setbacks in your trading journey because forex is not an easy way to make instant money
My last tip is to expect disappointments and setbacks in your trading journey. Here is your reminder that trading in forex is not a way to make instant money. If this is how you view forex, you’ll likely be disappointed once you realise it requires skills, knowledge, and critical thinking to trade successfully.
If you fall for the emotional selling and ‘too-good-to-be-true’ marketing schemes of scammers, you’ll only put yourself in a worse situation. So with that, expect your forex journey won’t be seamless. However, if you educate and enjoy it, you’ll surely be one of the people you know who’ll soon share success stories about forex trading.
Be careful and wise when choosing a forex broker company and platform.
As you start your trading journey, remember to be careful and wise when choosing a forex company. After all, your forex broker choice is one of the factors that will determine your future in the market. Always be careful and wise to avoid wasting money on scammers and tricksters.
Written by Bianca Banda