The world of online commerce now involves hundreds of billions of dollars. With almost £5 trillion traded every day, this industry reaches the heart of the financial world, as it is also the medium through which central banks pass. This is also where financial speculation takes place and where the best traders trade assets, every day of the week.
Access to different stock market assets has never been easier. With a few simple clicks, you can access the best trading software and start working like a true professional. You will have the opportunity to trade Forex, trade commodities and countless other stock market assets, not to mention the famous crypto-currencies which are, today, the most profitable assets on the market.
What are the most common scams?
To counteract phishing, make sure you are on your runner’s official website before entering your personal details.
While all traders seek to increase their capital, it is not easy to find the most efficient ways to do so. In fact, the vast majority of new traders start out thinking they can make a fortune in just a few months. However, the reality is quite different. In fact, being able to train properly, find the necessary capital and put yourself in the most favourable situation to start trading is not an easy thing to do. Worse still, the field of online trading is full of scammers. who are just looking to sweep the rug under your feet, even before you’ve started your career.
On the other hand, despite the colossal efforts that authorities and other organisations are making to limit scams, we must realise that this phenomenon will always exist, as long as online commerce is possible. However, there are effective ways to protect yourself from them and avoid them.
Fraudulent operations take different forms and evolve each time they lose their effectiveness. There are even some that bear the names of their creators, such as the Ponzi scheme that refers to the famous swindler Charles Ponzi. In the field of Forex, fraudsters know very well that they don’t have their chances against frantic traders. Consequently, they turn to the newcomers, who are still trying to get their bearings and who are still unaware of the ruthless world they have just entered.
How do you detect scams?
One of the most prominent indicators of recognising common scams is probably the unusual offers. In fact, when the offer you are offered seems too good to be true, it is probably because it is and therefore is a scam. For example, if you’re promised a 100% return, or if you’re promised a ten-fold increase in your investment without any risk, you may already be having serious doubts. Also, you should remember that these offers are almost always aimed at beginner traders. Therefore it is quite normal for them to break some of the golden rules of online trading. If you have completed your training well, you should be able to spot them fairly easily.
Here are some tips to keep in mind as you prepare to invest your money:
It is important to always remain calm and never to rush to the hope of quick wins.
Be careful and beware of bots that claim to apply secret formulas.
Also, be careful with any programs you are asked to install on your computer. These may contain malware, Trojans or, worse, viruses.
When it comes to trading platforms, there is an effective way to avoid scammers 100%. These are regulations that can only be obtained by brokers with a minimum of reliability. Of course, they are not enough to guarantee you the best quality of services, nor advantageous rates, for that matter. However, they are sufficient to allow you to eliminate all fraudulent brokers, even before you start to examine them more closely.
Accessing the documents that justify the regulation of the corridor is also easy. In general, the regulated broker tends to propose them in order to demonstrate its legitimacy and gain the confidence of as many potential customers as possible. However, if your doubts persist, you can always turn to the relevant authority bodies. On their websites, you will find the full list of brokers they regulate.
The forms of scams to be avoided
Even legitimate bots require continuous attention to function properly.
Fraudsters operating in the Forex industry or in stock trading often seek to find new schemes to exploit the naivety of novice traders. However, the vast majority of them follow familiar patterns. By learning to recognize them, you can avoid many problems.
Forex Bots Scams:
Commercial robots are programs that rely on algorithms to function properly. By entering specific data that matches the conditions for buying or reselling, the bots will execute operations autonomously and independently. These tools are very sophisticated and often incorporate forms of artificial intelligence, if not supported by trade experts.
So, yes, not all bots are the work of thieves. So, before opting for any of them, you can look for the worst lists of bots on the web. If you think you’re being scammed, chances are your name will be on those lists. Besides, there are other tips that will allow you to recognize them without too many problems. We summarize them here, in a few points:
The attempts at fraud are reflected in their unrealistic promises. When a broker guarantees you big profits, this already indicates that he has doubts.
The growth rates are extremely high. In bot scams, we find systems that claim to be able to generate 4000%, in terms of profitability, in just a few years. This may sound attractive to you, but the reality is that that rate is anything but reasonable. Obviously, novice traders may not know this, and that’s why they often fall into the trap.
Scalp removal traps:
Unidentifiable scaling strategies are also a bad sign. It is true that bots are most often used to generate profit by opting for the scalping method. Indeed, it is in this type of trading where they are most effective, for the simple reason that this strategy is based on the fact of performing a maximum of operations in a record time, while generating, each time, very small profits. Therefore a human trader will inevitably be significantly slower than a bot and as a result will not be able to generate enough money. However, all scalping strategies are already known to the general public, if the strategy the broker chooses is not part of it, we can already consider the bot a scam.
Finally, passing through an unregulated corridor is also a serious offence, which must not be committed. The latter can alter the visual results you have and make you believe you are winning in order to push you to invest more. In addition, it can also give you false prices, as it will only be a tiny part of the withdrawals that will be made. Most of the costs will be hidden and this can seriously affect the results you will get.
Ultimately, if you are thinking of using a commercial robot, it is important to check as much as possible. Furthermore, in addition to the tests we have presented to you, you can also test it by betting only the minimum amounts, for a certain time. If there are additional brokerage fees, for example, you will notice, without running the risk of losing large sums.
The forex signals scam:
For those who do not yet know, there are salespeople who act as signallers. Note that these are particularly active in the Forex sector. However, it is possible to find them in all areas of trading, but in much smaller proportions. It is possible to detect fraudsters by following these specific conditions:
While criminals seek to attract as many victims as possible, they will not hesitate to make empty promises. Thus, you can dissociate them from others by the fact that they promise unlikely results, which far exceed what competitors offer. At the same time, they will charge extremely low registration fees. This can attract many novice traders who will see it as an investment opportunity not to be missed. However, in reality, this is just a scam and they will end up losing their investments in an instant.