Forex Scams

Forex scams are a type of scam or fraud that are defined as an attempt by individuals or entities to take advantage of investors.

Like scams afflicting other types of assets, forex scams often involve defrauding traders or stealing funds, credentials, or jeopardizing accounts.

Unfortunately, all markets are susceptible to fraud with the FX industry being no exception.

In recent years, several attempts have been made to help strengthen compliance and regulatory measures that have been instrumental in curbing many schemes.

Consequently, retail brokers are now forced to much higher standards with most jurisdictions requiring licenses and registrations that help hold these companies accountable.

These measures have helped make trading safer for traders, many of whom are better shielded against abuse.

Despite these measures, scammers have also adjusted as well, with a number of forms of abuse still existing.

It is always important to be aware of any forms of fraud that prey on investors.

What Are the Most Common Forex Scams?

There are several different types of scams that are all repetitive across the retail forex industry.

Defense against such forms of fraud starts with both proper education and common sense.

It is often best to simply avoid opportunities that sound too good to be true, as scammers commonly use very specific types of language to reel in investors.

Forex scams look to prey on optimism, fears, or even a sense of urgency. It is important to always be on the lookout for aggressive language or these labels when approaching offers.

The most basic language in any forex scammer’s vocabulary is the guarantee of unusually large profits with little or no financial risk.

No investment is 100% guaranteed and this includes forex. If something sounds too good to be true, it usually is.

Traders should also be skeptical of software that claims to have found a 'secret formula' as well. Be mindful of installing any programs until you are certain they will not damage your computer.

It is also important to do your research on any broker before using them. All regulated brokers are included in a register in their respective jurisdiction and can be looked up.