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How to Identify a Forex Scam? How You Can Avoid Forex Trading Scams?

Forex Fraud 05: Signal Traders Advice / Forex

Signal sellers basically offer a system that wants to set up favorable times to buy or sell a currency pair. The system can be automated or manual (the merchant enters the data and gets the result).

Some systems rely on technical analysis, others rely on the latest news, and some use a combination of the two. But they all guarantee the provision of information that will help you identify favorable trading opportunities. These signal providers or advice providers typically charge a daily, weekly, or monthly fee for their services.

Although not all fraudsters, 99% are. They relayed messages received from other advice providers without conducting a real market analysis.


The best way to see if a signal seller can help you is very simple. Just ask them to give 2-3 demos and test them in your trading demo account. Be patient and you will discover whether these predictive signals really work for you or not.

Forex Fraud 06: Deposit Bonus / Double Bonus

This is the beginning of a bigger scam. Any broker who offers you a double bonus or a deposit amount or a free account balance is likely to be a fraud.

Brokerage fees are very low, in fact they benefit from a single trifle. Brokers usually take advantage of distribution. Now consider a gap of 2 taps that would earn him about $ 0.0002 per trade [See our guide to calculating taps]. How and why does it give you a $ 100 trading bonus ??? It's just a scam.

When you try to withdraw your winnings, they will deny it by showing you some terms and conditions. So do you lose your capital.

Forex Scam 07: The Holy Grail Scam / Ultimate Trading System

The Holy Grail is considered the cup that Jesus Christ used during his Last Supper. The Holy Grail is believed to be the source of eternal life.

Every new investor, when they first learn the technical analysis used to search for the Holy Grail system, can get 100% positive results. So they can win every trade they set up by invoking that system.

Unfortunately, there is nothing that can give you 100% correct prediction.

But this is where this forex scam begins. These scammers are aimed at novice and inexperienced marketers looking for a completely secure system. They will promote their system by presenting false information, and may contain some positive statements from various paid professional looking models.

If you begin to trust them, you have their control. They sell you their worthless system in exchange for a hefty fee, usually $ 10,000 or more.

Again we tell you that there is no ultimate trading system. Learn how to trade and do it yourself. Do not make yourself available to these fraudsters.

Forex Fraud Identification - Final Thoughts

Identifying fraud on Forex can be both difficult and time-consuming. But to save your hard-earned money from these scams, you need to invest it before investing.

Don't fall into an investment opportunity that ensures a super attractive return.

So, before you invest your hard-earned money on everyone, do your own research to avoid fraudulent intermediaries and fraud. Keep in mind that despite the strict regulations, there are plenty.

Lean yourself in the Forex trade well, look for no abbreviations and stay away from these scams.