The Forex market is huge, according to an estimate, the spot forex market trades over $1 trillion per day. If we include the currency options and future contracts, the amounts can even surpass the $1 trillion mark on a particular day. There is no doubt about it, the forex market is colossal, but how much of this market is taken up by the forex scam industry.
Is Forex a scam?
Scamming can be big problem if you are related to Forex industry. There are many peoplein the industry who are always looking to taking advantage of newbies. In reality, Forex is just like any other real business. It can be profitable. If someone tells you that Forex can make you extremely rich overnight, it is not possible – this is one of many red flags are probably denotes that you are speaking to a forex scam operation. Overtime it is possible to establish a profitable legitimate forex business.
Popular Forex Scams
One of the more popularmodern-day scams is the signal seller. Signal sellers can be a retail firm, a managed account company, a pooled asset manager or individual trader. These firms, managers or individuals promise high profits on trade that is based on professional recommendations. Unfortunately,naïve people can hand over to them a large amount of dollars in order to get trade recommendations. When these firms or people collect lots of money from certain traders, they disappear. Websites can disappear overnight and your money has vanished with the website. Some of them recommend good trades before disappearing so that the signal money doubles up. But it is also a fact that not all signal sellers are scammers. There are a lot of them who are honest, but there enough bad apples out there, so proceed with caution.
Forex spot market is completely unregulated. There are many Forex brokers who are honest but there also is no shortage of brokers who are scammers. But you can avoid bad brokers by looking out for the tell-tale signs of a scam broker. You need to look out for bad brokers on the internet so as to avoid becoming the latest forex scam victim. You have to search for bad feedback and customer reviews on the internet. You should read comments and argumentation on different websites about a particular brokerage. However, always read with caution as these scammers are notorious in posting fake reviews and comments to allure new victims into thinking they are a legitimate operation.
How can I avoid being scammed?
Choosing the right brokerage is very important when it comes to Forex trading. You need to check where your brokerage is headquartered and be sure that they are where they say they are. Over the past 5 to 10 years regulations have increased up to a great extent. It has made business expensive but also safer. You have to check first if the brokerage with which you are doing business is regulated or not. The brokerage should be in the regulated jurisdiction, if it is not, but claims to be regulated, this is another red flag.
What if I am Getting Scammed?
If you believe that you are getting scammed by forex brokers or have fallen a prey to binary trading scam, the first thing you should do is speak to an expert and see what your recovery options are. An expert attorney will be able to advise you on the best option to help you recover your losses. If you are scammed, it is not an easy moment. Coming to terms with the fact that you were a victim of a trading scam and yourhard-earned money has been lost is hard moment of realization for anyone. You should immediately consult with a law firm that specializes in trading scams.