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Steps on Finding Out Whether or Not a Forex Scammer is Legitimate or Not?

Steps on Finding Out Whether or Not a Forex Scammer is Legitimate or Not?

Foreign Exchange or Forex trading has its benefits and drawbacks like all things. We cannot control specific outcomes because Forex trading is a highly volatile money market; hence, financial losses are likely. However, we can prevent damage from other factors, such as fraudulent Forex traders or brokers. 

Traders and brokers are involved in buying and selling assets in financial markets. While traders focus more on developing profitable investment strategies for the investors, brokers focus on their relationship with clients and carry out transactions on their behalf. Before telling you ways to check the authenticity of your Forex trader, let’s look at significant Forex scams.

Is Your Forex Broker Using Any of The Following? 

1. Forex Robot

Forex Robot is a program that uses algorithms to carry out transactions automatically and generates enormous profits. These programs need to be tested and approved by authorities to be used for Forex trading. However, scammers may use non-verified Forex robots, making transactions fraudulent and investors susceptible to monetary losses.

2. Signal Seller Scam

Signal seller refers to companies or individuals who provide investors information about suitable times for investment, giving high profits in return. The companies might have high subscription fees or charge a small amount to access your bank account details which can also be used for financial fraud. Once investors pay the fees, the company may disappear with the money.

3. Ponzi Scheme

Ponzi schemes promise high profits for initial investors by bringing in new investors. The company asks for small initial investments, never invested in Forex trading but moves within the scheme’s investors. Once the scheme has multiple investors, the company can end it and disappear with the money.

4 Ways to Authenticate Forex Trader

1. Risk-free, Exaggerated Returns On Investment

Risk is part of online trading; hence, traders offering to carry out Forex trading on your behalf without incurring any losses may be scammers. Moreover, the Forex trading market is unpredictable, so traders cannot provide as high returns on investment as they claim.

2. Unsolicited And Persistent Contact

Suppose you are unexpectedly and persistently contacted via phone calls, emails, or text messages regarding highly profitable Forex trading opportunities. In that case, it may be a scammer trying to lure you into fraudulent schemes.

3. Complex Agreements

The Forex trader may present complicated and lengthy “Terms of Use” and “Risk Disclosures” in agreements. Such agreements could lead to financial loss only for the investors.

4. Verification Through Companies

FX or Financial regulators can help you identify and take action against fraudulent Forex traders. They provide public lists of verified traders as well as black-listed traders. When choosing a Forex trader, consulting such lists would be beneficial. But what if the Forex trader is on neither of the lists?

Chargeback Way can help you! This consultancy company can research Forex traders for you and provide in-depth information on whether they are legitimate. If you are scammed by Forex traders, you can also report the traders to the company and recover your funds.