During last decades, after the development of the digital and Internet technologies trading Forex became much more available for the customers than before. In fact, online trading became accessible for the retail traders in 1999. The ability to start a new profitable business without the requirement of investing a big capital is a very attractive opportunity for many people all over the world. Unfortunately, as a result of developing the brand new industry, many of dishonest people seeking to get an advantage of the new and inexperienced traders created the situations called Forex trading scams. Being a legitimate business Forex is not a scam by itself but there are many frauds related to it.
Forex trading scam
Due to taking decisive actions by the regulators, the number of Forex trading scam has been significantly reduced over the years, making them extremely rare event. Nevertheless, the next several advice can be helpful for those who cares of not becoming a scammer’s victim:
- Find out about the place and country of the brokerage headquarters. Thus it is possible to know if it belongs to the highly regulated countries like the United Kingdom or the United States or not.
- Learn about the history of the company – time of foundation, roots and how long they have been in this industry.
- Study in detail their terms and conditions and policy. Also reading the reviews and feedbacks from users can be helpful to get an understanding of brokerage’s behavior regarding the clients.
Is Forex a scam
Probably the very first question every rookie trader asks, is Forex a scam? No, the Forex is definitely not a scam. Trading activity on the Forex market is completely legitimate business which can be very profitable in case of appropriate attitude, right actions of the trader and use the reputable and trustworthy brokerage providing the service of the appropriate level.
According to the definition, the scam is deliberate fraudulent activities with a purpose to get profit (in the form of money or other valuable goods) from unsuspecting users. This is exactly a difference between a broker company providing poor online trading service and the Forex trading scam broker. That’s why to avoid unpleasant surprises and big trading losses while using possible online trading scam brokerage is recommended to analyze its behavior and actions using the tips mentioned above.