Forex Scams: How to Spot and Avoid Them

Over $5 trillion get traded every day in the forex market. With that much cash flying around, it’s easy to see why there are so many forex scams out there.

If you’re considering getting involved in forex trading, there’s plenty of money to be made, but you won’t wind up on top if you lose it in a scam.

Keep reading to find out more about the most popular types of forex scams out there so you can know what to look for and how to avoid them.

Forex Trading Systems

A forex trading system is a great way to set up an easy way to earn money. However, it’s also a great way to get scammed if you’re not careful.

In the past, these systems sold for $5,000 and up. Some scammers will still try to sell you an expensive system, claiming you can quickly and easily get your money back and then some.

Even for the best legitimate systems, you shouldn’t pay more than a couple hundred dollars for one. Anything else is a scam.

Bot Scams

This scam has been around since the beginning of forex trading, and it’s likely here to stay. So, recognizing it for what it is will help you tremendously.

If you’re careful when choosing a forex system, then you should be able to avoid this scam, since that’s how this one works. Some systems offer you convenient ways to make money 24 hours a day with no work thanks to an automated system.

Unfortunately, many of these systems are haven’t been tested outside of the companies that sell them. The biggest problem with them is that if there are any glitches, there’s no telling what the bots will do with your money while you sleep.

Paid Forex Signals

This is one of the most popular forex scams today. Whether it’s in individual, a retail firm, or a managed account company, they try to get you to pay them for signals.

Market signals can help you make smart buying decisions, but you shouldn’t have to pay for them. Besides that, many of these so-called experts make promises of wealth they can’t keep, leaving you empty-handed.

We recommend you use free forex signal providers. This way, you’ll get plenty of advice to guide your decision-making process.

Other Signs of Forex Scams

Here are some other signs to look out for that could indicate a scam:

  • Not being able to cancel a trade you haven’t authorized yet
  • Not being able to withdrawal your money from your account
  • Poorly-working software program with frequent glitches
  • Unrealistic promises being made of how much you can earn
  • Being expected to pay more than you feel was originally agreed upon
  • Lack of communication or lack of contact information

While there are a plethora of scams out there, being smart about who you choose to work with will help you safely trade money through forex.

Get Started with the Best Free Forex Signals

If you’re ready to avoid the scams and jump into forex trading, then you’re in the right place. Check out our website for more information on where you can find the best free forex signals.

This article was written by our in-house forex traders with a combined 20+ years of experience in trading the financial markets.