Foreign exchange fraud is a collective term referring to any scheme that intends to defraud traders through deception, convincing investors of high returns by trading on the forex market. In essence, the foreign exchange market is a zero-sum game, wherein one person experiences gains while another suffers from losses.
We all know by now that online investments are pretty risky. This is especially true in the foreign exchange landscape. There is an abundance of forex scams online, initiated by scammers who get their confidence from the Internet’s anonymity. Identifying a scam from a legitimate forex trading activity is imperative to protect yourself from financial ruin.
Aggressive forex brokers
Recovery from a forex scam can be arduous and slow for its victims. Before you become one, it is best to recognize the typical warning signs. Legitimate forex traders are not aggressive when marketing their expertise or service to prospective investors. On the other hand, if a few forex brokers or companies persistently contact you whom you do not know personally, it is best to proceed with caution. If you are interested in forex trading, seek references from people you know.
Exaggerated claims of high returns
A classic indicator of a forex fraudster is exaggerated claims of massive returns on modes investments. It is most likely a scam if you are promised guaranteed high returns. The success of your investment is highly dependent on a highly volatile market. You may receive…
