Forex trading is one of the popular avenues of making Money online. However, you can easily lose your hard-earned money if you’re not properly guided in the market. There are forex scams all over the internet. You need to be well informed about them before you start trading live forex.
Given below are 5 top forex scams to avoid:
1. Forex Broker Scam
There are hundreds of forex brokers on the internet. A good number of them are real scams. They will lure you into depositing some funds. They promise you heaven and earth if you agree to open accounts with them. Once you deposit your money and start trading, you can be sure of losing your money.
Some well known brokers that are considered real manipulate trades. I don’t want to mention their names. You have to locate them by yourself. You can discover fake brokers by reading their reviews online. You can also test them with a little cash.
2. Forex trading platform Scam
Most forex brokers offer the popular Meta-4 trader platforms. When you trade with the demo version of the platform, you won’t experience any scam issue. You can be sure of making real profits.
However, once you start trading with real money, the brokers will start to manipulate the trading platform. You can’t tell when they manipulate trades. You have to test several trading platforms before you start trading forex with real money.
3. Forex PAMM Scam
Some brokers offer the Forex PAMM trading system. It’s simply a system that allows you trade forex without getting actively involved. You simply invest your money in an expert trader and allow him to do the trading. You share profit if the trade is successful. You can also lose if the trader messes up.
Instaforex.com and Liteforex.com are among the most popular brokers that offer the Forex PAMM system. From my experience with them, I discovered that the trades are often manipulated.
You may be trading with a successful trader who makes profits on regular basis. You may be with the trader for several months. After a while, the trader’s open positions will start to be manipulated. He’ll start losing all his trades. At the end of the day, all the money is gone.
You really have to be careful when investing in Forex PAMM. It’s highly advisable you try it out with a little cash. Never invest any huge amount in Forex PAMM. You’ll certainly cry one day.
The best approach is to invest a little cash and allow the cash to grow. You can take off your gain and play with the remaining cash.
4. Forex Robot Scam
There are hundreds of forex robots online. They claim to be making profits when you buy and trade with them. Their creators know the real truth. You’ll be gambling with your money if you decide to purchase a robot and trade with it. You may wake up one day to see the robot clear off your funds.
Never trade forex with any type of Robot. Don’t waste your money buying any robot out there.
5. Forex Bonus Scam
Many forex brokers use bonus as a bait to capture new investors. Some of them promise to give you 100% bonus when you deposit. For instance, they can give you $100 when you deposit with $100.
Sure, you will certainly see the bonus. But the truth is that, they will take off the bonus through manipulative ways. They will also target your own money as well. Once you start trading live forex, you can be sure of losing everything.
In all, forex trading is a risky venture! You can earn money and also lose it at any time. Expert forex traders can tell you the truth. They also lose money. However, it’s important you develop a winning trading strategy. You should be aware of the forex scams discussed above before venturing into forex trading!
