The star of foreign currency exchange has risen meteorically in the last few years. This is especially true for retail forex trading because it has received more attention from the droves of the global public who are looking to improve upon their current standards of life.
However, as is the case with all online industries that become popular, this has resulted in numerous scams also popping up all over the place. Now, on the foreign exchange, there are scams in the form of dubious forex brokers, bloggers, trading courses, and even automated systems.
This has made the life of new forex traders very difficult because their inexperience combined with the elaborate marketing schemes makes them very susceptible to these scams. This is why you, as a new foreign currency exchange trader, need to be very careful when availing new services or products.
In order to avoid getting caught in such traps, you need to be able to differentiate between scams and genuine forex industry businesses. Here is how you should go about doing this.
Vague Website Design & Details
Most scam artists on the internet do not have enough funds or devotion to put in a lot of work into anything. This lack of effort would show in the way their websites would be designed and populated.
For instance, the design would be rather inferior while the content in it will be extremely vague. If you see a service or product provider in the foreign currency exchange industry with a website that has no contact information on it then you should move on.
Zero Risk & Big Profit Claims
Moreover, such scams are usually based on the psychology of the client base that they are targeting on the foreign currency exchange. As most of these scammers know that people enter the world of forex to make a lot of money their claims would revolve around this fact as well.
You will see claims related to there being no risks and huge profits in an extremely short period of time without any effort being put in. If you do see such tall claims and obvious false claims then you should know that the service or product provider is not honest.
Lack Of Documentation
There would also be a certain lack of documentation with these scams. For instance, their terms and conditions documents would be extremely dubious. Furthermore, they would also not have any risk disclosure documents or formal contracts of any kind.
References & Recommendations
Most reliable names on the foreign currency exchange would have numerous recommendations available openly on the internet while the scams would have scathing reviews. Checking up on these reviews and comments thus becomes important.
Furthermore, you would also do well to ask them to provide you with references or contact information of their existing client base. If they are unwilling to provide them then you know that they are not genuine players on the foreign currency exchange.
Steering clear of scams on the foreign exchange is not a difficult task as it only requires a little bit of common sense and research.