It’s no secret if every business has a negative side. This also happens in forex trading. Not a few frauds occur in the business of buying and selling foreign exchange.
Some individuals want to profit improperly in the name of forex. In fact, what they offer may not be a business. According to The Balance, some forex brokers do not deal fairly with their customers and, in some instances, defraud them. Thus, a more appropriate solution in responding to the proliferation of forex scam is not to stay away from the forex business itself, but by knowing what are the characteristics of forex scam to avoid it.
Let’s look at 4 characteristics of forex scam that you should know:
Forex Trading Offers Risk-Free
Every forex trader must understand that forex trading is one of the highest risk investments. You can’t get any profit in this business without ever losing at all.
Likewise, no one can guarantee that you will benefit 25%, 30%, 50%, or whatever the amount is continuously every month. If there are people who offer investments in forex with the potential for such fixed profits. Then, it is a mere money game fraud mode.
Unprofessional Website Appearance
Financial business is one of the most profitable business fields in the world, be it related to stock, bond, forex, and other assets. Therefore, the demands of professionalism in this business are very high, both online and offline.
If you find someone offering investment in forex but the site is messed up with a URL like a normal blog, inaccurate info, and lots of blank pages, then it might include forex fraud.
There is No Permission from Official Institutions
You should know that all forex brokers must have permission or license from an official regulatory agency. Examples of official institutions include Bappebti Indonesia, British FCA, Australian ASIC, United States NFA / CFTC, and so on. This permission is mandatory and you should only deal with forex brokers who have complete licenses.
Without proper permission, your funds stored at the broker will not be guaranteed security. The existence of a broker is not necessarily valid, both the company and the address. More than that.
Unclear track record and reputation
Those who offer you forex business must have a good reputation in the eyes of their clients, or at least have a fairly long track record. In forex trading, both of these can be monitored online.
You can search for the name of the party that offers you forex business. Those who are truly bona fide will certainly have positive reviews, or at least not get bad testimonials. Besides, check online discussion forums that are often visited by traders, then ask about the bonafide of those who offer the forex business. If you have a forum member who has been in contact with him before, then you will certainly get a confirmation.