Who are the Forex Scams?
The commercial sphere is an area where fraud flourishes. Forex is an attractive market for scammers who insist on deceiving traders. Unsavory individuals who do not belong to any particular company try to position themselves as reliable firms. Find out full Forex scammer list on the TU website. They spread fake information and invite unsuspecting traders to the scammer’s fake or fraudulent websites. They do not obtain licenses or certificates and often lack knowledge or expertise in the Forex market. People who have no basic skills in finance and economics misinform participants and cause significant trouble and damage to the entire trading community.
Luckily, well-meaning professionals are doing everything possible to protect the market and people working on the platform. Thanks to some revolutionary instruments, scammers who used to invade many commercial sectors are now on a steep decline.
Currently, every participant can refer to numerous blacklists of Forex fraudsters. Teams of internet users continuously seek out dishonest players and publish blacklists on the web. Detailed information about the scammers is painstakingly collected and published at the top of the infamous lists. For additional data, just scan the pages to become aware of dishonest characters who only want to swindle the market. Then avoid them at all costs.
What is a Forex scam?
Nowadays, tricksters can easily create a well-designed and professionally-structured website that is polished in every respect. There you may see catchy mottos, eye-catching graphics and promises of great profit. Novices are often attracted to such portals because many such faux sites look and feel just like the real thing—at least at first. Impressed by the slick appearance and over-the-top claims to riches by these tawdry websites, a potential victim signs up and makes a deposit upon registration. This is where all the problems start.
At present, experts divide Forex scammers into three major groups:
- Fly-by-night brokers prevail among fraudsters who use the internet to meet inexperienced and veteran traders in the marketplace. Scammers create legitimate-looking websites and invite others to invest money.
- Forex bucket shops are less frequent. They require more Forex skills and knowledge. Such scammers duplicate renowned Forex brokers, but the trading conditions such teams offer are impossible—they are simply too good to be true. As a result, participants lose money.
- Pyramid schemes are found all across the web and outside the web, too. As a rule, pyramid scammers collect deposits from unsuspecting traders while the scammers continue to make nothing more than surreal promises of “soon-to-come-riches” by leading traders on and on and on, until the scheme collapse onto itself.
How to avoid Forex scams
Since the early 2000s, everyone has been trying to learn more about the mysterious world of Forex. However, its popularity inevitably led to several issues related to fraudsters and scammers who were trying to make their fortune but too in a dishonest way.
At present, every participant can easily check out the broker he is interested in dealing with through the internet and see users’ reviews, and make sure that the platform is licensed and approved. Fraud is no longer a danger if you take basic measures to protect yourself. Rating lists help a lot and you should always refer to them, including the rating lists found on the Traders Union global information site.
Never select a broker, if:
- You are promised fantastic profits;
- The broker says there are no risks;
- The website ignores regulations;
- You feel the website uses unprofessional practices;
- The platform contains dubious tools and strategies;
- You know the ratings are fake when compared to other brokers;
- The broker hasn’t obtained an SSL certificate;
- There is sustained trouble and/or excuses during the withdrawal process.
The points mentioned above are some of the key principles which you should rely on while choosing the right Forex broker.
Where can one find a trustworthy broker?
Illegal activities practiced on the internet are not rare. That’s the reason why no blacklisted platforms have regulators. Users will not see license numbers or certifications by regulators on fake websites. This means that traders must pay attention to details and learn as much as possible about a broker before they sign up and start trading. Your broker’s license ensures that you are dealing with a trustworthy member of the community and that it is obliged to fulfill its contractual obligations to its clients. Each licensed broker must meet strict requirements. Transparency of financial transactions is another important aspect for all users to look for.
Be sure to do your due diligence when shopping for a reputable broker.