4 Tips on How to Identify Forex Fraud

When the first wave of Forex market boom hit the internet and more and more people started trading and investing money. It immediately attracted those shady characters of the world to jump in and commit multiple instances of FX fraud. The market got flooded with various brokers, software developers, providers of trade signals and other bad characters whose only interest was to scam you of your money and get out for, let’s say, Barbados.

Of course, it hit FX reputation hard. Sometimes people even mention its fraud, firstly, and then speak about trading.  However, it also helped to separate wheat from the chaff. The legitimate businesses have survived all types of Forex fraud and have risen to the top. However, any FX trader (newbie or pro) needs to be careful as the bottom feeders do exist even though being less prevalent.

Free Trials Offer

As a rule, the fraud guys dealing with Forex are not interested in giving you any trials. They want their get-away money fast and don’t want to grow old, while you are testing their piece. For instance, if a service has a free trial with a FX broker demo account, or a free run with Forex robots, or gets free signals from a FX signal provider, these are the indicators of a legitimate business.

On the other side, if you requested a free trial and didn’t get one, then something is wrong. So move on to find what suits you best as there are wealth of opportunities to get what you want in Forex universe.

First Impressions Run the Show

Like in all relationships, the first impression does matter; the same thing is true for Forex services and tools. By this I mean the way your potential partner is presenting yourself. If it’s a fraud business, it does not really care about a professional website. Some awkward headline-letter-interface would be their choice. You will know it when you get through the entire website for about ten minutes. On the opposite, if it looks so snazzy and “in your face” (like a vulgarly-clothed woman on the corner), it’s not likely to be valid (or become your wife in the future).

Always look for contacts and support. People who deal with fraud are willing to shy away from their potential victims to get in touch with them.

Check Things Twice

Generally, the ads for FX robot traders and signal providers will include mind-hitting success rates. When being too good to be true, like anything else in life, it should be treated carefully.  However, again, you can check their website for different period charts of the same time period. Check the data they give against historical data from another source. Don’t follow their word and spend some time checking yourself.

Independent Sources

The thing important  for you to remember! Look through some independent reviews that will tell you about Forex fraud. Conversely, don’t underestimate the Google power – printing in the partner’s name in a searcher may give you unexpected (and maybe unpleasant) feedback on the company.

With those of these “suspicious” things I tried to cherish the major truth – Forex space keeps much more legitimate and great instruments out there.  If you make little researches, you will lower your chances to get a fraud to “zero.” So, take care.

Published by Editorial Team
ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.

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