Millions of people from all over the world are doing forex trading. Day by day forex trading has become very popular. There are many scammers in all financial markets. Many scammers are doing scam by using the name of forex trading. From this article I am going to discuss about the types of forex trading scams.
Fake Forex Brokers
There are thousands of forex brokers available in the market. Most of the forex trading scams are done by the brokers. Some brokers are legit and very popular. But, almost 40% brokers are fake and doing continuous scams with forex traders. Basically, this types of broker’s agent at first call people from an international phone no, after that they motivate people to start forex trading. They are showing proof of profit. They are giving assurance to people that by using their platform users earning regular base profit. After that, many people start trading with them and deposit money to their platform. After depositing money everything goes fine, you can see your profit in trading terminal.
But, the real face of this types of fake brokers will open, when you ask them to withdraw your profit or principal money. They do not directly decline your request instead they provide you many norms for withdrawal. But, finally after all efforts the outcome is zero. Also you have no option to claim your principal amount.
How to check a legit forex broker?
You have many option to check a forex broker. At first search on google and youtube by typing your broker name. Check broker’s review first. There are many forex broker’s review websites. Before investing check all terms and condition of the broker for withdrawal. In this case I will suggest you, choose well known and top ranked brokers.
Forex based mlm concepts
In the market, so many mlm companies already operating. They are claiming that, they have highly experienced forex traders team. There team will trade for you. Just deposit money in their websites. After that, regularly get 1-5% daily returns. But, in reality they are just doing money rotation. They have no relation with trading. This mlm companies are make people fool. After some months this mlm companies will stop operating and will suddenly vanish by stealing people’s hard earned money. Their aim is to grab people’s hard earn money. So, never believe this types of mlm companies.
Paid Forex auto trading robo
In youtube or every social media platform you can see many people selling forex automated trading robo or script. They are showing you some big profits. Almost every one claiming that their robo is best, and it will give you maximum profit. Many forex robo scripts cost almost $500 to $5000. Believe me guys, no forex robo software in this universe will give you continuous profit. May be some software will give you good profit at the beginning. But, at the end all are same. One day you will loose your all money just for this types of worthless softwares. Because, this software has no emotion. So stay away from this types of robo.
Account management Fraud
If you are a forex trader then, I am sure that you are know about forex account management system. In this market, there are many account manager. They are just managing your forex account and charge commission from the profit amount. But, sorry to say that 90% account managers are scammers. At first, they will open big volume trade for big profit. If, they earn profit they will charge you 20-50% commission. But unfortunately if they faces loose, then they will not respond. Ultimately loss is yours. So, the Solution is don’t give your account anyone to manage it. At first focus on learning and trade in demo account. Remember margin trading is not easy. You can loose all your money within some times.
But, Some account managers are really good. They follow proper money management and risk to reward ratio. But, this types of account managers numbers are very few.
You can also read :- How to start forex trading in India?
B-Book Brokers or market makers
Basically, in currency trading, there are two types of forex broker. A book broker and B book broker. A Book brokers are called true ecn broker. This types of brokers are legit and real. They will not manipulate your trades. But, on the other side B book brokers are called market maker. Their target is to manipulate your trade and wash your all equity. Their spreads are high and not fixed. Sometimes they intentionally set very high spread to hit your stop Loss. Their swap charges are also high as compare to other brokers. So choose only true ecn broker for trading. Remember one more thing that many brokers are claiming them a true ecn broker. But, they are basically a Highbridge broker. Some brokers provide liquidity by themself.
Basically, In this market many scammers are trying to scam with people. They are Targetting new people. So remember all above points. Don’t be a fool. Beware, about all types of forex trading scams. For all tutorials regarding forex trading you can check this youtube playlist.