What is Forex Trading?
Forex is a financial market that takes place globally. It means a trader can buy a forex instrument such as the dollar or euro with any kind of currency of their choice and sell it with another currency, whether it is the local currency or any other major global currency. Â
As an investor, you will be buying and selling the forex to make some money. You may make small profits from daily profit making but this is not enough to meet your needs. You can invest in forex trading to grow your capital and make a killing in your capital like Donald Trump.
Every day, there is a big market in forex trading. Traders that control the market share make and lose money for their clients on a daily basis.
The Different Types of Scams
Forex is a legal market in the sense that if you have your EMI (equated monthly instalments) or bank account linked to your account, you can make real money. But just like any other market, there are scams that you need to watch out for. We have listed out a few of the common types of forex scams.
1. Forex Scamming From An Online Platform
This type of scammers usually come from foreign countries where the markets are not as deep as in Malaysia. They create profiles on various forex trading platforms. Using this, they solicit or receive your account details and ask you to send them money so that they can buy some good-looking cryptocurrency. After which, they will pretend that they don’t have sufficient funds and request you to transfer it to their bank account.
How to Spot a Scam
With only a few minutes to spare, take a quick look at some of the most common signs that a forex scam is about to happen. Below are the key aspects that you should keep in mind.
1. No Professional Related Name
When I say “no professional related name”, I don’t mean an outright scam such as “Financial Forex Insurance”, or something that is completely fraudulent. I mean that this name does not seem to correspond to what kind of services are provided or what kind of credit you can apply for, since it can be hard to make money in forex with no real knowledge of what you are doing. Other than a unique name that is not used by other companies, your company or service name should also have a professional sounding title.
How to Protect Yourself from Forex Scams
Here are some tips on how to protect yourself from the frauds:
Check the seller’s story before entering your hard earned money. Do not invest on someone with no details about the business he or she is promising.
Look for a person or a company registered with Financial Industry Regulatory Authority (FINRA) before transacting with anyone on the Forex market.
Do not accept a suspicious deal. Remember, there is no such thing as free money.
Take some time to research and find out what’s a good or bad broker before you place your trade.
Place your trade only through well known forex brokers, who provide guaranteed returns.
Do not rely solely on the recommendations of a single friend or a family member about who to trade with. Do your research.
In my opinion, there is no need to go to work to earn an easy money. The forex market offers you great opportunity for making lots of money without spending lots of money. All you need to do is educate yourself, start your own, experiment and test the waters to see what works and what doesn’t before you set out to make a quick buck.