The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams:

Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud.

So, how can we avoid falling in such forex scams? Casey Stubbs already covered this issue and gave 3 ways to avoid forex scams. I’ll expand on his advice, and add some more thoughts:

  1. If it looks too good…: Sites that promise automatic and big profits in no-time should raise your first suspicion. There’s no easy money in this market. Sites that try to sell such products will usually have only one page that showing blinking dollars and no serious explanations. The graphics are usually “loud” and not humble.
  2. Talk to people: Casey suggests talking to people in the company and also with people that use the product to get an idea. In some cases, the people you’ll see in the promotion video will already look like clowns. In other cases, they will look serious, but you need to verify that they really stand behind their product.
  3. Google the product and search for problems: I’ll add that you easily do a Google search, and add words such as “sucks” or “scam” to the name of the product. If the search results yield too many convincing results, it isn’t only competitors that are complaining – it’s real people that have already suffered.
  4. Check the people on LinkedIn: The world’s leading professional network has a very wide audience. Searching for the people behind the company in Google will almost always yield the LinkedIn page in the first results. If the people behind the venture don’t have a profile on LinkedIn, that’s a problem. If they do, see who recommends them. Solid recommendations will help you feel better.
  5. Regulation: A serious participant in the market will be regulated by at least one authority. The American NFA is the toughest authority (sometimes too tough). A stamp from the NFA, FSA, CFTC or another reputed institute in a normal country doesn’t mean that the company is bona fide, but it’s better than nothing. Companies listed in some exotic island look suspicious.
  6. Demo account: As aforementioned here, a forex demo account is the basic broker check. Some robots can actually have an OK performance, but how can you know that? You need to check it out. Ask to try it without real money.
  7. Intuition: Well, at the end of the day, you get a feeling about the people on the other side. As you can see, the forex industry has lots of bad people in it. Contrary to the basic rule at court, where a person is innocent until proven otherwise, you should assume that everyone is guilty and that they need to prove their innocence to you.

 


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Editors’ Picks

EUR/USD bounces off lows, back near 1.1330

EUR/USD bounces off lows, back near 1.1330

EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.

GBP/USD eases from tops, revisits the 1.3500 zone

GBP/USD eases from tops, revisits the 1.3500 zone

GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.

USD/JPY slips as Japan’s core inflation hits two-year high

USD/JPY slips as Japan’s core inflation hits two-year high

The Japanese Yen extends gains, with USD/JPY falling to near 143.00 during European hours on Friday. Japan’s core CPI rises 3.5% YoY in April, the highest in two years and above expectations. Headline inflation stands at 3.6%, the same as the previous month and the lowest since December.


Editors’ Picks

EUR/USD bounces off lows, back near 1.1330

EUR/USD bounces off lows, back near 1.1330

EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.

GBP/USD eases from tops, revisits the 1.3500 zone

GBP/USD eases from tops, revisits the 1.3500 zone

GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.

Gold keeps the bullish tone near $3,350

Gold keeps the bullish tone near $3,350

Gold extends its weekly advance, trading around $3,350 per troy ounce on Friday. The rally in XAU/USD is driven by broad-based weakness in the Greenback, particulalry after President Trump’s threat to impose 50% tariffs on European imports.

Apple stock sinks below $200 after Trump threatens more tariffs

Apple stock sinks below $200 after Trump threatens more tariffs Premium

Trump grows irate at Apple's move into India. President claims Apple must produce US-sold iPhone in US or face a 25% tariff. US equity futures slip more than 1% in Friday premarket after Trump threatens the EU with a 50% tariff.

Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution

Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution

XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.

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