The internet is filled with scams, and it can prove a daunting task to spot them with untrained eyes. Scammers are just around the corner, waiting for you to make the mistake of going for their “professional service” and losing your good old money to them.
The internet has improved our quality of life, and smartphones have helped us make financial decisions on the go. You no longer need to visit a cyber cafe or wait until you get home and connect to your computer to check on investment opportunities.
The internet has also helped us connect and trade in the forex market anytime and anywhere. However, scammers have spammed the internet with their bogus online get-rich-quick scheme.
The forex market is one of the most lucrative and liquid markets for making substantial profits. The daily volume is roughly $7 trillion; thus, it is not surprising that it attracts both retail investors and scammers.
Since forex withdrawal frauds are more prevalent online, if you are a beginner and want to try your luck to make substantial profits, this article is just for you. We will lay down a few pointers so that you can recognize them and take corrective steps to avoid falling for one such scam.
Before you sign up for any online forex broker or brokerage firm, you should ask these questions or observe their website.
Is the online forex broker or brokerage firm regulated?
As we have mentioned earlier, there are several online forex brokers and brokerage firms. However, most scammers impersonate an online forex broker or a brokerage firm. As the quality control of food is regulated by the Food and Drug Administration (FDA), similarly, online forex brokers and brokerage firms are regulated by either government firms or a reputed private firm.
If the online forex broker or brokerage firm is legit, they will mention their license certificate on their “About Us” page. These license certificates are issued either by a government firm or by reputed private agencies.
If the online forex broker or brokerage firm you choose has its headquarters overseas, then you must use extra caution. Verify the authenticity and validity of the license certificate online. Such firms must have a valid license, as most of the firms that run shady businesses have either had their license certificate revoked or refrained from using it because they were involved in a scam.
Is the online forex broker trustworthy?
Many scammers who have been involved in scams have had their licenses revoked, but they continue to run their businesses by mentioning their license certificates on their “About Us” page simply to attract unwary victims.
Run a Google search mentioning the name of the online forex broker or brokerage firm. Check if they are involved in some shady business or are under litigation. It is best to steer clear of such online forex brokers or brokerage firms.
What do the clients have to say?
You must also go through the review page of the website. Remember that there is not a single business in this world that will satisfy the entire population. Some will keep finding faults regardless of the services they have to offer. And these are the same people who will keep finding faults but never leave the existing company or firm and seek a new one.
It is also true with an online forex broker or a brokerage firm; no matter how good the service is being provided, some will keep on complaining about them. So when you are going through the review page, you should consider such things.
While going through the review page, check how the clientele is being handled and how their queries, questions, and challenges are being answered by the client support team. It is also an ideal time to check on the general sentiments of the clients. If the home base of the online forex broker or brokerage firm is overseas, then scrutinize further.
Punctuation and grammatical errors
Although scammers are gifted when it comes to pulling off a scam, they seriously lack English as a language. When you visit the website, check for punctuation and grammatical errors. If you find anything missing, then it is wise to let go of that site and continue to search for a new one.
Forex trading platform
One of the most important tools is the online forex trading platform. You need one if you wish to participate in the forex market. The only way that you can ever get it is by availing yourself of the services of a forex broker or brokerage firm.
Several online forex brokers and brokerage firms offer demo accounts. These are similar to a live account, with the only difference being that a demo account uses virtual money instead of real money as used in the live account. So when you make a profit or loss, it won’t affect your financial holdings while using a demo account.
Using a demo account will help you understand the user experience. Since both the live and demo accounts display similar features, you will understand all the features like charts, graphs, and historical data you might need while trading in the forex market.
You will get a feel for the forex trading platform by understanding what features are to be expected while using the live account. Check your comfort level before signing those contract papers.
Client service centers
All online forex brokers and brokerage services offer client support services to their clients. When you, as a client, are faced with any challenges while operating the forex trading platform or you need some help regarding any other problem, you can contact these client support centers and get your questions and queries solved.
Before signing the contract papers, call their client support center, which should be running 24x7x365. Reach out to their different modes of lodging complaints with them. Such modes will vary from direct calls to chat and email facilities. Check how quickly their call center answers your queries or attends to your calls.
It is also one way to check how serious these online forex brokers or brokerage firms are about running their businesses.
One of the latest features is utilizing bots to carry out trades for you. They come at a premium, but they can be customized to your trading style. They are programmable and require minimal supervision. These bots are roughly 70% to 80% successful in carrying out trades for you. However, you need to monitor them a bit.
These bots come at a premium, as the forex broker or brokerage firm has invested a lot of money in the research and development of these bots. These bots compare historical data, charts, and graphs to make the best decision while carrying out a successful trade.
If you find an online forex broker or a brokerage firm offering trading bots at a competitive price, then you can be dead sure that they are scammers selling garbage software.
You need to understand that scammers are good with software, and when you buy a trading bot from one such scammer, you can be certain that the bot is programmed in such a way that it will run losses instead of making a successful trade.
Sometimes scammers under the guise of an online forex broker or brokerage firm will convince their victims that they have an insider trader and will help them make substantial profits for a price, but you can be certain about making profits.
You should understand that insider trading is a crime that involves incarceration, a hefty fine, or both.
What these scammers are selling you as “signal trading” is research-based trading of the currency pairs, which anyone can do with a bit of practice. It would be better if you started researching and stuck to your research, as you would be entering and exiting the market based on your strategy.
Initially, you would make mistakes and take losses. It can be compared to riding a bike; you will frequently fall until you get enough experience and skill that you start trusting yourself. And this is where your demo account comes in handy, where you make mistakes only to learn from them instead of learning the hard way by losing your money on a silly trade.
Terms and conditions
Any broker or brokerage firm makes money by charging for each trade. It is normal; what is not normal is charging any “hidden charges.” If you happen to find it difficult to understand what is being said, ask the client support center to provide everything in writing. If you still find it challenging to understand all the terms and conditions, it would be wise to visit your local certified public accountant, or CPA.
Some scammers are impersonating an online broker or a brokerage firm that will charge you to withdraw your profits. They may also charge you for investing it in your account. They may also charge you for maintaining your account.
Unsolicited calls or messages
If you are contacted through an unsolicited call, text, or message regarding forex trading, try to understand what they are trying to offer. If you still find it challenging to understand, ask the person on the other end to provide everything in writing and visit your local CPA.
If the person is trying to convince you to buy their services due to a special offer or once-in-a-lifetime offer, then it is wise to disconnect or refrain from further entertaining that person; chances are that person might be a scammer.
Refrain from entertaining calls if the person on the other end is using coercive language. Never give in to a persistent caller’s request or advice. A genuine person from a reputed online forex broker or brokerage firm will allow you to take your time and respect your decision.
Visit your local law enforcement agency.
After checking everything, the last thing you want to do is visit your local law enforcement agency. Ask the boys in blue regarding the online forex broker or brokerage firm, and ask them if they are allowed to run their business in your state. Several states and countries allow certain online forex brokers or brokerage firms to run their businesses.
Another advantage of visiting your local police station is that they have a huge database, so if someone has been a victim of the same fraudulent online forex broker or brokerage firm, they will have a record of it.
It is good to multiply your wealth; everyone has that right, and it is lawful. What is considered a crime is stealing their money, which scammers are experts at. You need to keep an open eye and go for a genuine, reputed, and trusted online forex broker or brokerage service.
Let this article act as a guide to finding the correct online forex broker or brokerage firm.