Protecting Yourself From Forex Scams

As a recap: Useful Q & A on Protecting Yourself From Forex Scams

Unfortunately scams in the online retail forex industry are very real and very commonplace as there is an abundance of crooks out there attempting to make a dishonest living.

Your best defense is being smart in order to outsmart fraudsters. To succeed in currency trading, study, research and learn as much as you can and build a solid trading experience for yourself through practice. Do not be carry away and fall victim to unrealistic profit promises, do not trust any person, signal or robot that promises easy, risk-free and lucrative solutions.

Below, is a set of the most common questions posed by our readers in relation to forex scam. Read the short answers as a quick reference as to what you should always bear in mind:

Q: How can one be protected from fraud?

A: The best way to protect yourself from fraud is to be smart and educated in order to be able to know what a scam looks like, identify it from the beginning and thus avoid it. You can consult our detailed chapters on the different kinds of forex related fraud for more information, but as a general, golden rule keep in mind that anything that seems too good to be true usually isn’t and it is a scam instead!

Q: How do I choose a forex broker, to avoid fraud?

A: To find a forex broker that will not scam you, you need to do a thorough research on them before hand. Always prefer regulated forex brokers over unregulated ones and verify they are licensed via your local watchdog and regulatory agencies. Find out more on broker-related forex fraud via our dedicated post and find examples of honest brokers you can trust on our Broker Guide!

Q: Can I trust forex managed accounts?

A: The short answer is usually no, since the only forex manager you can surely trust is yourself! If you insist to use a forex managed account however make sure you only trust a person that has the proper licenses and certifications. Read more on forex managed accounts fraud in our relevant chapter.

Q: Are forex robots and signals profitable?

A: They could be under very specific conditions and circumstances, but their overall profitability depends highly on market conditions. Don’t regard them as an easy and safe method to make money and be wary that they are often great vehicles for forex fraud and scams, especially with the way they are being marketed. Find out more on forex robot scams and forex signals scams in our dedicated posts.

Q: Who do I contact if I suspect that I have been a victim of fraud?

A: If you suspect that you have fallen victim of fraud relating to online retail forex trading you must contact the relevant watchdog in the jurisdiction where you live. If you are located in the United States then you should contact the CFTC, through http://www.cftc.gov/ConsumerProtection/RedressReparations/index.htm, and/or the NFA: http://www.nfa.futures.org/basicnet/Complaint.aspx. If you live in the United Kingdom, then your first port of call could be ActionFraud, which is national fraud and Internet crime reporting centre and can be reached from here http://www.actionfraud.police.uk/. If you live in Australia then report your case to Scamwatch, through http://www.scamwatch.gov.au/content/index.phtml/tag/reportascam#h2_10.

For more details on the regulators and other relevant authorities for other countries, see our relevant chapters on Forex regulatory authorities.

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