Forex Scams
1 min read
Many scams in the forex market are no longer as pervasive due to tighter regulations, but some problems still exist. One shady practice is when forex brokers offer wide bid-ask spreads on certain currency pairs, making it harder to earn profits on trades. Be careful of any offshore, unregulated broker. Individuals and corporations that market systems—like signal sellers or robot trading—sometimes sell products that aren’t tested and don’t yield profitable results. If the forex broker is commingling funds or limiting customer withdrawals, it’d be an indicator that something fishy goes on.
A popular modern-day scam is the signal seller. Signal sellers are retail firms, pooled asset managers, managed account companies, or individual traders that provide a system—for a daily, weekly, or monthly fee—that claims to spot favorable times to buy or sell a currency pair supported professional recommendations which will make anyone wealthy.
A persistent scam, old and new, presents itself in some sorts of forex-developed trading systems. These scammers tout their system’s ability to get automatic trades that, even while you sleep, earn vast wealth. Today, the new terminology is robot because the method is fully automated with computers. Either way, many of those systems haven’t been submitted for formal review or tested by an independent source.
