According to a study a few years ago, unregulated cash transactions in Forex were estimated at about $3 trillion. The cash Forex market is unregulated and because it is an over-the-counter market, there is no promise of liability, and the problems associated with Forex scams are growing by the second. The spot Forex market is attractive as an oasis of promising shade and clear water in the middle of a dry desert.
Seduction is likely, until you see the clear picture. In recent years, the types of popular currency scams had been stopped, but again, this is an unregulated market and new scams are inevitable.
For modern traders, identifying warning signs is the best way to avoid scams. According to experts, signal sellers are scams. They can be individuals, asset managers or companies who trade under the pretext of professional references promising wealth to those they want to trap. They tell their victims about their experience and how that person or that person can testify about how they have made them rich. Once they have obtained the trust and money from the poor trader, they disappear. This is sad because there are many signal sellers who actually offer a real, relevant and effective service.
Trusting an automated system sounds good in theory, but isn’t it more of a gamble in the end? Although some promising systems offer good opportunities to identify good pairs, these systems still lack independent testing and the code they use may or may not be valid. If the code is not accurate, it is possible that the trader is simply trading on random pairs and this means that instead of making intelligent decisions, he is only playing blindfolded. A trader should always check that the system he is using is actually tested and that its reliability has been thoroughly verified.
When choosing a broker, always check if they create separate accounts for each merchant they manage. The last thing you want is for your fund to mingle with others. You want your individual account and your fund to be tracked. You want the report to be clear because you need to have checks and balances. In some cases, the broker or fund manager manages to take money from clients and leave them hanging while they profit from the stolen money.
In any financial transaction, there are risks and while there are risks, it is still a promising area to explore. However, it is advantageous to know where you stand to avoid problems in the future.