In the past few years, investors around the globe have come across a great number of investment opportunities. Innovation in the field of technology has made the Forex market one of the best promising growth areas.

According to a survey conducted by Bank of International Settlements, the estimate of daily spot market turnover to be USD 1.65 trillion and with currency futures the daily turnover is more than USD 5 trillion. The numbers are really impressive, right? However, when scammers, see those mind-blowing numbers, they cannot resist their heinous urge to make lots of money through shady ways. And this is why just like any other popular financial market, the Forex market has been a victim of Forex scammers for a very long time.

Today, a huge number of financial predators lurk in the Forex market and the numbers are growing at a worrisome speed. Do you know market research done by Action Fraud has found that Britain is losing £1.2 billion to investment scams every year? Isn’t that frightening? Of course, it is. No one will love to see their hard-earned money washing away.

People are investors and many of them across the globe fall into the trap set up by the scammers and end up losing their hard-earned money. Identifying the scammers in an earlier stage reduces the chance of being scammed significantly. However, the scammers know how profitable the Forex market is, and this is the reason they are busy developing new and lucrative scamming methods that look great for most investors & end up in their trap. To avoid becoming one of the victims lured in by Forex scams lookout for the following warning signs.

In the past few years, investors around the globe have come across a great number of investment opportunities. Innovation in the field of technology has made the Forex market one of the best promising growth areas.

According to a survey conducted by Bank of International Settlements, the estimate of daily spot market turnover to be USD 1.65 trillion and with currency futures the daily turnover is more than USD 5 trillion. The numbers are really impressive, right? However, when scammers, see those mind-blowing numbers, they cannot resist their heinous urge to make lots of money through shady ways. And this is why just like any other popular financial market, the Forex market has been a victim of Forex scammers for a very long time.

Today, a huge number of financial predators lurk in the Forex market and the numbers are growing at a worrisome speed. Do you know market research done by Action Fraud has found that Britain is losing £1.2 billion to investment scams every year? Isn’t that frightening? Of course, it is. No one will love to see their hard-earned money washing away.

People are investors and many of them across the globe fall into the trap set up by the scammers and end up losing their hard-earned money. Identifying the scammers in an earlier stage reduces the chance of being scammed significantly. However, the scammers know how profitable the Forex market is, and this is the reason they are busy developing new and lucrative scamming methods that look great for most investors & end up in their trap. To avoid becoming one of the victims lured in by Forex scams lookout for the following warning signs.

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Forex Trading Scams to Watch

​Most people are well aware of the saying “If something seems too good to be true, it probably is not”, remember this saying all the time when you are going to make a Forex investment. Many Forex scammers will run an aggressive marketing campaign for their services by assuring high returns. This method is the most common scamming method used by many fraud brokers. Sometimes they even manipulate past trading results to assure investors for receiving a great return on their investment. They then push the clients into investing a large sum, only for the market to ‘unexpectedly go against them’, which leads to a great loss of invested capital.

Forex Robot Scams

Forex Robots are automated software that enables automatic Forex trades. It is like an autopilot feature, where traders can take a nap or go out for fun without hampering their work. Sounds quite interesting right? These robots are very handy and easy to use, and this is the reason nowadays Forex robots are getting a lot of hype and Forex robot scams are not far behind.

Today, almost every Forex broker offering its investors to earn vast wealth by using Forex robots. They back up the effectiveness of these tools with great return on investment and lull the investor into a false sense of earning more only to end up broke. Most of these robots have not been tested by the capable reviewer. Hence, the parameters and code integrity are always questionable factors to start with. If you have decided to use a Forex robot anyway, we would suggest you go to a professional and independent agency for evaluating the trading system’s parameter and code integrity.

And remember Forex robots are only as ‘smart’ as the people who build them. It’s crucial to select a legitimate auto trading system offered by one of the best & legitimate Forex brokers in the market.

Promises of Little or No Risk

If you come across a Forex agency who claims to have created a trading technique that offers very little or no risk, run! Forex investment is a place where investors can get a very profitable return or they can lose a large sum as well. Forex investment market is the land of uncertainty, if you do not have good money management, you can lose a large amount if not all the capital within a few days. So, people who are saying that they have a magic policy which reduces risk to ‘zero’, they are shady and they are after your cash. Run and don’t look back!

Keep a safe distance from catchy ads

Want to spot a shady Forex broker? The best way to do so is by looking into their advertising patterns and content. The Forex scammer artists will try their best to draw your attention by using ludicrous headings. They will use words and attractive graphics that will impact your thoughts and will throw at you in every possible opportunity they get. For instance, they can use the ” Secret method found to get the best return”, “Shocking investment secret that works 100%” etc. Don’t fall for these catchy advertisements, if you do you are making scammer’s life easy.

Dishonest Firm & Brokers

Indeed, the Forex market is not completely regulated. Till now, there’s no central administrative body to regulate the transaction and trading policy. Unsurprisingly, this allows some Forex brokers to run a shady business process with their investors. To avoid bad brokers or investment firms, do not forget to investigate the broker or investment entity. Take your time to investigate their authenticity. Check whether the agent or Forex firm is registered with any regulated body or not. Many fake Forex agents falsely claim that they or their firms are registered with government-regulated bodies to gain investors’ trust. Do not fall for it, research about the firm extensively knows their background, how many years they have been in the market, their portfolio, people involved in the organization, etc. before handing over the cheque. Some of the main regulators to look out for include:

• The Financial Conduct Authority (FCA), United Kingdom
• The Markets in Financial Instruments Directive (MiFID), European Union
• The Federal Financial Supervisory Authority (BaFIN), Germany
• The Australian Securities and Investments Commission (ASIC), Australia

Aggressive sales tactics

This is often called hard sell. This means the scammer will deploy his/ her all resource to pursue the investor until they start investing more. Generally, scammer approaches an investor through SMS, call or emails constantly to convince them to become their client or to invest even beyond their threshold by promising great returns within days. In a few incidents, to push the investor into a financial nightmare, the scammer suggests the investor take loans or mortgages and borrow from family members or friends, to gather the funds to get the ‘guaranteed return’ they are promising.

Conclusion

For a beginner or less experienced investor, navigating through the Forex market is a daunting task. Careful investors are likely to avoid a wide range of trading scam and will receive great returns from the opportunities offered by Forex trades. Being able to recognize who is real or who is trying to scam you, is simply a matter of time and deep research. Listen to other investors, keep a sharp eye out for any red flags we have mentioned above, you should be able to find the legitimate broker, by yourself.

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