Have you recently developed an interest in online investment? This article will tell you all you need to know about Forex trading. Forex or Foreign Exchange trading has emerged as a significant money market today. However, transactions are always vulnerable to scammers.
What are Forex Trading Scams?
People are assured by third-party organizations they will receive high profits on their investment in a short period. However, the organization might disappear with all the money or any fees paid by the client for services promised by the organization. Before we tell you tips to avoid Forex scams, let us look at how Forex scams are done.
3 Common Forex Scam Methods
- Phone Scams
Phone calls are an old marketing strategy; however, Forex scammers misuse this strategy to commit fraud. The scammer may present an irresistible proposal, for example, high profits with minimal initial investment, or pose as experienced Forex brokers who can carry out Forex exchanges on your behalf for a fee.
- Email and SMS Scams
Scammers can also send legitimate-looking emails and text messages posing as Forex brokers; however, it may result in fraud.
- Advertising Link Scams
You might have seen this scam as pop-up advertisements on the web or social networking platforms, with photos of famous personalities of the financial world, promising high returns on Forex investment.
Now you understand how Forex scams work, so let’s learn ways to avoid them.
Top 3 Ways to Avoid Forex Scams
- Unsolicited Phone Calls, Emails, or SMS
If you receive any of the above from senders not on your contact list, offering risk-free profitable deals, they are most likely scammers. You should not give any personal information or transfer money unless you were contacted by a verified organization. The best option would be to avoid opening such emails and text messages or answering such calls in the first place.
- Social Media Advertisements
Refrain from clicking on pop-up advertisements because scammers might be trying to get your attention with fraudulent investment opportunities. Only click on ads by verified Forex trading companies.
- Verify Forex Exchange Companies
Individuals or companies offering financial services have to get approval from authorities of the country, for example, the Financial Conduct Authority in the UK or the Securities and Exchange Committee of Pakistan. Hence, it is beneficial to choose companies verified by these authorities before carrying out any Forex trading.
Besides these government-level authorities, consultation firms provide highly qualified consultants for verifying brokers and companies involved in Forex trading. The authenticity of the broker can be confirmed for you to ensure your Forex trading experience is as smooth as possible.
