Examples of Forex Fraud
Can we consider the Forex market as a scam in itself? While it is true that the forex market is a risky market in which you can lose money, it cannot be said that it is inherently a scam.
When we talk about Forex trading scams, we are talking about scams perpetrated by fraudulent trading platforms.
If you trade Forex with a serious and regulated broker, receive proper training and train on a demo account, then you will minimize the risks.
Trading site scam
While there are, of course, regulated and reliable brokers, many online trading platforms are scams.
Most Security and Exchange Commissions also issue the list of illegal investment sites on their websites.
High frequency trading scam
The high frequency trading is running at high speed financial transactions using algorithms.
This is a category of automatic trading that raises ethical and regulatory issues, but it is not illegal.
Robot trading scam
Not all robots in trading are the same. Trading robots are not a scam in and of themselves, but many scam trading sites have made the sale of trading robots a scam.
This is because they promise their victims, the beginning traders, quick and easy profits.
Social trading scam
Social trading, or copy trading, consists of replicating the operations of experienced traders.
Although it is an attractive practice, the risk of loss is not less than with traditional trading. It is not a scam in itself, since its use is allowed, however, you may decide to copy trades from traders who have large losses. For this reason, we strongly recommend analyzing the strategy or the trader that you want to copy and be aware of the risks that it entails and if we are willing to assume them.
Recovery Rooms: False Refund CFD Scam
The refund scam is a double penalty imposed on victims who have already been scammed for the first time.
These entities are typically bogus banks, bogus law firms, or various collection companies.
We must not fall into that trap and follow true money back guidelines.
Telephone Forex Scams
Regulated entities and with which we usually work have obtained our data legally. In addition, with the GDPR (General Data Protection Regulation) we have to give our permission to send us the trading offers.
But if an entity that we do not know contacts us to offer us an investment, we must be extremely cautious because it is probably a Forex scam.