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Traders Union Analysts Explain: Can You Get Scammed In Forex Trading? 

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The global Forex market is steadily growing, and many thousands of companies offer their brokerage services or investment products online. However, not every company is properly regulated, and some of them are deliberate scams planning to take your money and disappear. To avoid losing your trading capital, you should understand how to spot scammers on the market. We present the results of market research by Traders Union analysts related to the most popular types of scams.

Scams on the Forex market

Most financial instruments are risky, but the foreign exchange market is widely known to be especially volatile. That’s why some traders still consider Forex trading a scam. However, it is quite the opposite: with almost $5 trillion traded daily, the Forex market is currently one of the most liquid and well-known financial markets, and it’s considered essential for the global economic system. Forex brokers comply with the same requirements as all financial intermediaries in general, and most of them are monitored by major regulators like FCA or ASIC.

But can you get scammed in Forex trading? Unfortunately, it’s possible: there are many scammers out on the market that use complex financial scheming and aggressive marketing to deceive you and take your money. New scams appear every day, but you can significantly lower your chances of falling into one of them by learning about the most common fraud schemes used by scammers.

Most common fraud schemes

HYIPs are very popular schemes used by scammers: these projects promise you extreme returns with almost no risks. They are often structured as a Ponzi scheme: there’s actually no trading; your money gets paid to earlier investors to convince them the scheme works, but eventually, it collapses. Another popular type of fraud scheme involves selling fake Forex robots or incorrect trading signals. This type of Forex scam is often used by unlicensed brokers who take your money for various services only to ghost you shortly thereafter.

How to spot a Forex fraud

All the most popular fraud schemes Traders Union experts covered are similar: they utilize your greed and attract you with too-good-to-be-true offers. To avoid them, stay realistic, don’t trust any unregulated broker with your money, and always do your own research before investing in anything to find out whether your new trading opportunity is actually a scam or not.