Forex isn’t fully regulated, and the system relies on the brokerage firms to register with bodies like NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission).
Its nature of being highly volatile makes it the favorite of scammers and they promise to offer 100% profit with their secret formula.
Hedge fund traders are seen to make consistent money from their forex trades while inexperienced traders look for a reputed education source to learn how to earn large returns.
No matter if you are a novice trader or an experienced trader, forex trading will not give you overnight riches and you are bound to be a victim of trading scams.
In order to protect yourself from fraud, inform your bank instantly. Refer to the federal authorities and hire professionals such as Money Back to help you retrieve your money from the scam.
With the right approach, you can protect yourself from forex scams. Some of the tips to protect yourself are given below:
Well, everyone does their bit of research, but according to us you should look out for the following information:
User reviews: Keeping the fact in mind that every trader makes losses, unsatisfied clients and EAs may complain that they didn’t get the returns as promised.
Look out reviews where traders weren’t allowed to withdraw money as they are a good pointer of the truth.
Location: Offshore brokerage firms and bots aren’t regulated. It means it will be hard to get a hold of them in case you need help.
And at the time of scam, you have very low chances of getting your money back. Hence make sure you choose a broker who has a HQ and a location and is regulated by one of the regulated bodies of the area.
US regulators: CFTC is a US government agency that manages forex trading. It operates under Commodity Exchange act and regulates the markets and prevent scams.
US regulators: NFA is a self-regulatory body in the US which deals with forex trading.
Other than this, you have the Financial Conduct Authority and Background Affiliation Status Information Checker to protect yourself from scams. Check for these places for the legitimacy of the broker.