There a lot of forex scams to be wary of. Forex trading is not a scam but there are some people who use Forex to scam you. Some of the common methods used by scammers are below.
This is where someone invites you to ‘invest’ your money with them so that they can trade on your behalf and you share profits. They can promise you profits of up to 300% in 30 days. They usually ask you to transfer the money using money transfer methods like mobile money and there will not be any physical encounters between you and the trader.
When you begin by investing smaller amounts they usually pay you as a way of enticing you to invest larger amounts. If you invest larger amounts they will then vanish with your money and change phone numbers. Never invest in these account management schemes as you will lose your money. You should learn to trade on your own.
Sale of Indicators
This involves the scammer selling you an ‘indicator’ that does analysis for you. This is meant to make trading easy for you as the indicator will tell you when to buy or sell currencies. The problem is that the indicator will be ineffective i.e it will give wrong signals and you will have bought a useless thing. Indicators can be sold for anything from $50- $300 so you will have lost a lot of money.
To avoid this scam, you should learn to read price action on your own. It’s a long route to profitability but its worth it if you become a profitable trader. I have also provided some free forex indicators for you on this site.
Another scam method is when the scammer charges you for providing trading signals. This is supposed to make it easy for you so that you will not do analysis on your own but you will be told what to buy or sell. The problem is that their signals may be ineffective and you will lose money using them. So you will have paid for a useless service. You will always have free daily trading signals on this site so you can use that to help you in your trading. Tread carefully if you are to subscribe to a paid signal service.
Stay clear of these scams and protect your money. Please share this post with your friends so that they can protect their funds as well. Thank you.