How to Identify and Avoid Forex Scams

Forex Scams are not new in the market. According to a report published by Bloomberg, Forex Scams have been reported to be the number one way of a trader to lose his or her money. Owing to the lucrative nature of the scam, Forex Scams have been a rage among the industry professionals. No matter how much you educate these traders about the potential signs of something being a forex scam, they simply don’t seem to understand. The point is that forex is legitimate, but the factors that many scams depend on are in the majority of the times not genuine. Right from fake returns, fake licenses, fake celebrity promotions to even fake customer care authorities, scammers seem to be devising newer methods of providing new forex scams on a daily basis. However, we at Morgan Financial Recovery, after our team of experts have devised the best ways to identify any kind of forex scams easily. 

Automated Trading software

Let us make this clear once and for all. If any trader is promoting an automated trading forex bot and saying that it provides high insane returns, it is definitely a scam. Automated trading just doesn’t work in forex trading. The market is volatile, not as volatile as stocks but it is. Forex will forever be a market that requires the human mind to trade properly. There are sudden ups and downs, insane highs and lows, a proper time to exit the market which a bot, even if it’s trained with Artificial Intelligence won’t be able to perform. Hence stay away from forex bots as much as possible. 

Fake software and exchanges

Forex requires software to trade with. A lot of companies try to dupe innocent traders into believing that they have software that will help them earn a lot of money by investing just one or two hours a day. This is simply out of question. They charge a handsome amount for the software and vanish in thin air soon after that and soon you realize that the software is of no use. 

Fake forex exchanges are also common. The scammers hire good developers to make a good forex website and it looks like a completely genuine one. They put in fake About Us and Terms and Conditions Pages that look like a genuine one. They put fake license numbers. Hence we suggest you verify the license numbers with the financial regulatory authority bodies where license numbers of all genuine exchanges are readily available.

Bad investment advice

There are certain brokers who offer seriously bad investment advice. Since they are scammers, they first make sure that the traders have earned a lot of returns owing to the fake algorithms that they promote. Then they make sure that you are convinced that you should invest a lot more money and you would get a lot more returns on a regular basis. Sometimes, they say that you should invest all your money at one go. This is a clear example of a bad investment practice which you should stay away from.

About Morgan Financial Recovery

Morgan Financial Recovery is a fund recovery group that deals with fund recoveries owing to fake forex trades. Owing to a decade of experience, 54+ attorneys and over $3 million recovered so far, they are definitely the best in the business. No matter how big or small you have lost your money, there is always a ray of hope when you contact them.