How to Avoid Forex Trading Scams
The foreign exchange (forex) market is huge, with an average daily trading volume of more than $5 trillion, including currency futures and options. It’s also not very well regulated. That means the opportunity still exists for many forex scams that promise quick fortunes through “secret trading formulas,” algorithm-based “proprietary” trading methodologies, or “forex robots” that do the trading for you.
Before getting involved in Forex Trading, perform your due diligence. Do your own research on how to choose a reputable broker and avoid scams.
One challenge a beginner forex investor faces is determining which operators to trust in the forex market and which to avoid. Signal sellers offer a system that purports to identify favorable times for buying or selling a currency pair.
Some systems rely on technical analysis, others rely on breaking news or a combination of them both, Signal sellers provide information that leads to favorable trading opportunities.
Signal sellers typically charge weekly or monthly fees for their service and a lot of signal sellers make the majority of their money charging for their service rather than actually trading, the best way to see if a signal seller would benefit your trading is by entering practice trades that don’t involve real money, be patient to determine whether these signals works for you or doesn’t.
Phony Forex Investment Management Funds
Forex management funds have proliferated, but most of these are scams. They offer investors the “opportunity” to have their forex trades carried out by highly-skilled forex traders who can offer outstanding market returns in exchange for a share of the profits.
The problem is, this “management” offer requires the investors to give up control over their money and to hand it over to someone they know little about other than the hyped-up and often a completely false record of success available on the scammers’ website and brochures.
Investors often end up with nothing, while the scammers use investors’ funds to live high on the hog.
A good rule of thumb in the forex market, as with other areas of investment, is that if it sounds too good to be true, such as annual returns of more than 100 percent, for example, it’s almost certainly a scam.
The Financial Conduct Authority – Unauthorised Firms And Individuals
Almost all firms offering financial services in the UK must be authorised by the FCA & they have even give you the ability to check for unregulated firms, if you would like to check the FCA warning list then please click on the following link –
You should only deal with financial services firms that have been authorised by the FCA.
If you deal with an unauthorised firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.
Unfortunately, there are firms that operate without our authorisation and some knowingly run scams like share fraud and other investment scams.
If a firm does not appear on the FS Register, but says it does, search for it in the list below or contact the FCA Consumer Helpline on 0800 111 6768.
Beware of fraudsters pretending to be from firms authorised by FCA, as they could be ‘clone firms’. If you’re cold-called by a financial services firm, always ring them back on the number given on the FS Register.
You should take steps to protect yourself from unauthorised firms and check our list of warnings from foreign regulators.
If you have been targeted by any kind of scam then please contact us as soon as possible.
Phone – 0800 193 6851
Email – Help@scammers-be-gone.co.uk
Report – To report a scam please click here
If you are concerned that you have been targeted by a scam firm then please contact us as soon as possible