Remember that not all forex is fraudulent. I hope this article provides you with enough of an insight to tell the difference. But I cannot stress enough that you should only buy Forex if you are aware of the risks and know what you’re getting into before you dive in. If you don’t feel comfortable with Forex trading and are still interested in learning more, you can always learn about the basics here.
Frauds within Forex are nothing new, with scammers trying to take advantage of uninformed traders for as long as the market has existed.
The Low Risk Forex Trader
The Low Risk Forex trader has managed to make the most of the recent boom in Forex trading by taking advantage of the low risk of trading.
How To Avoid Forex Scams
There are ways to avoid the risks of falling prey to Forex scams. The first one is to only invest in stocks, options, and futures. Use only those with low or no commissions. To buy, you will have to spend your own money, which is risky as well. But using currency trading, there is always the element of risk involved, especially if you don’t know anything about the markets.
To learn about this market, you must do some reading. You can start with the Forex learnings and programs available at ForexResources.com. This platform provides a free step-by-step Forex Trading Strategy for beginners.
Another way to avoid Forex scams is to find a good exchange in your area to make trades.
The Forex industry is very lucrative. Many of the exchanges can run at a loss. This is normal.
How to spot Forex scams
Why You Shouldn’t Invest in Forex?
The very reason why many people who try to trade in forex end up losing their money is because they invest in a risky currency pair or they enter a system where the Forex platform doesn’t allow them to trade because they have not created a trading account and are not registered. Also, many investors are losing their money to trading bot accounts and the exchange bot providers, which has brought about cases where people have lost tens of thousands of dollars to these bots. If you end up losing, it’s very unlikely that you will get back your money in the same currency.
Forex Trading Setup
As we have already talked about in the introduction, Forex is not for beginners.
Why is there a need for this blog post?
The Forex market is quite an anonymous market. Although you can see who is offering what, you will have no idea if they are legitimate or just trying to lure you into one of their offers. In addition, you will have no way of being able to identify them. Therefore, you should exercise extreme caution when entering into any deal with someone just because of their current presence in the market or because of the way they are introducing themselves. Forex scams are a real threat in this market because they can easily cheat you out of your money.
As a trading beginner, you should consider spending as much time as you need to improve your trading skills before making any trades with someone.
Why would someone want to invest in Forex?
Forex trading is highly competitive and these scams could definitely take you down. Forex is a very capital intensive investment which means that you will have to spend money on trading, fees and exchange commissions. Therefore, when making your investments, make sure that you know what you are buying.
The truth is that there are very little opportunities for Nigerians to easily make money in the forex market.
You have to have an additional brokerage account to participate in the market and you will also have to trade with at least $10,000.
If you want to make money in the forex market, make sure that you know the risks associated with it and how to prevent them before you get involved.
Why are there so many Forex scams?
Scams and practices aside, a majority of people who start out in the forex market are caught up in the beginner’s bubble and are unaware of the risks involved. A beginner is generally attracted to the huge returns, flashy marketing campaigns and unrealistic promises. The main problem is that most beginner traders have no understanding of the risks of such a venture. They just want the money, not understanding that their credibility and money is at stake. They are basically learning how to gamble but with substantial consequences that can affect their families, loved ones, future opportunities and even their future plans. As we know, Forex trading is a highly risky venture. Sometimes, we have to learn the hard way.
In a Forex market of over $1.
Why are people still investing in forex despite the risks?
It depends. Some people look for better returns on their investment and consequently pay a small amount of money to the scammers to trade. Others prefer the risk but have difficulty finding a company that pays them interest, especially when they are new to the market. However, most people look for the best forex software that brings in higher returns on their investment. With that being said, it will not be advisable to invest in Forex software or forex trading platforms as such platforms are very risky.