TOP 5 - The most popular scams under the FOREX market

Every industry has its dark side, even forex. Or maybe I should write "above all"? However, the media only reports about the loudest. But we are here to help and reveal to you the ranking of the five most popular forex scams. What tricks are used by fraudsters under the banner currency market?

# 1 - Investments in debuts

A definite hit in the scams of recent years. If you were one of the "lucky ones" who received a phone call greeting you with the words "I have a great investment opportunity for you!" with wall-street noise in the background, you know exactly what's going on. Worse, if you succumbed to these manipulations - then you probably lost your money.

Call Centers, which "Out of nowhere" have taken over the substantial investor databases is a real bane Forex market. The incompetent, pushy, and often rude callers who allegedly work for an international investment house had one simple task. They were to convince us to invest money in a debut, signals or other bull-shit on which, again, allegedly, we were to make a massive profit with zero risk.

READ NECESSARY: Why (not) invest in company debuts with Forex brokers?

It was they who became the trading leeches aka "sucker hunters". The paid-in capital was never meant to earn for us. In fact, after making the transfer, it could be concluded that it was lost.

Warning signals:

1. Offer to invest in debuts or signals,
2. Employee's incompetence during the interview,
3. "Guarantee" of making a profit.

recommendations:

1. Ask where the employee got your number ("from the secretary " i from the "database" so do not answer).
2. Ask for your broker's license and provide its exact number (verify it yourself).
3. Do you have doubts? Do not donate completely NOTHING.

# 2 - Magic systems and robots

Let's do a little experiment. Enter the word in the search engine on the auction portals "Forex".

Already? Excellently! Then you've discovered the second biggest hive of forex scam :-). Of course, I am referring to all the "super-systems" of Forex and slots that (according to traders only) generate hundreds of thousands of percent of profits. Transaction history only partially visible? It would be good. Most often, it is not visible at all, it is "photocopied", it comes from a DEMO account or shows only historical tests and only from these successful (usually short) periods.

An example of a "super-system" marketing tool

But we are encouraged to buy, first of all, capital curves rising to the sky, large green rates of return, payment orders (often also crafted), training in operation, consultations and - what is most important - catchy names of systems! On sale we have met, for example: FaraonEA, Rapid Pro, WallStreetNewTradeGold, ShowMeTheMoney EA and others ... Prices range from several dozen zlotys to even several thousand, although the most affordable prices ending with - $ 99.

Where's the catch?

Could you be wondering why someone sells such brilliant systems on the web for such small amounts? After all, he would have become a millionaire in a month. But maybe he just has a good heart and wants to share, and selling is his passion? None of these things.

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The answer is usually very simple - because these systems do not work. But there may be more reasons. The system could work, but only for a while. It can also work all the time, but only to the moment when it suddenly resets the account (that is, it does not work itd), etc., etc. Everything eventually leads to the same conclusion. The author discovered that he would make more money selling the system than using it. Voila - Forex scam done!

The "super-system" result from the backtester. Data modeling 25%.

So if you just bought a system just following the rising equity curve, I'm sorry - you probably just lost your $ 99,99. If you absolutely want to buy something under the slogan "forex" at the auction, it is best to choose a bathrobe (they look pretty good 🙂) or any book.

Warning signals:

1. Affordable system price and great profits shown in a short time.
2. Partial transaction history.
3. Results from a demo account, backtester or from a "shady" broker.

recommendations:

1. Recognize how the strategy makes the transaction (what it is based on, what risk it takes).
2. Ask for system results from different periods (and finally from holistic).
3. DO NOT BUY.

# 3 - Fake statistics on Myfxbook

The results are something that a potential client-trader expects, who wants to acquire training, an indicator, a machine or any type of tool or service that is to help him earn.

In the past, statement statements were enough, but they were quickly learned to fake. Later, they wanted to see the account with a password that was only used for viewing, but this is a risk to some extent. There was a situation where the trader wanted T-38 seller for the last year. But it did not always make sense, especially when we dealt with a foreign offer or when it was not settled :-). External websites came to the rescue, which made it possible to present their results from the account on-line with verification on their side. This was to ensure transparency with a minimum of formalities.

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Has it worked? Well ... It turns out that if we have access to the MetaTrader server we can very easily, quickly and magically create our own transaction history as needed. It is true that this is a task for the more determined, but not impossible.

Warning signals:

1. The account history is longer than the broker is on the market.
2. The broker is VERY exotic (why did he choose it?).
3. The account is not verified or appears as DEMO.

recommendations:

1. Analyze the transaction history thoroughly.
2. Estimate the risk taken by the trader.
3. Only rely on verified real accounts with access to order history.

# 4 - "Market Wizards / Dream Sellers"

How many have already happened on the Polish (and not only) Forex scene? Nice suits, Bentleys, helicopters, exotic countries, crash announcements that will make you a fortune ... And of course "just buy my training!" The sale of dreams backed by a pile of illusions and tricks NLP and the lack of any results. Beware of the trader!

One of the popular Forex trainers

There are many tricks - show what we have, and then convince you how easy it is to achieve it. Do you have doubts? Then we will introduce an offer limited in time and quantity ("This is the last such opportunity!") and we will push it all off with 6000 PLN for only 1999 PLN (everyone likes big promotions 🙂).

Of course, as a beginner, you will have a hard time recognizing if the knowledge you impart is worth anything. Rather, you will even be fascinated by it (and more by the trainer himself). Often sellers "tempt" their potential customers by participating in free webinars or downloading a fragment of the training / book - and this is a chance for us to develop an opinion about what we can expect. If in the free sample you only get promises with no particulars, don't expect anything more in the future. Require specificity, and above all, experience in trade and passion. This experience and passion are the foundation of quality.

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Training and courses

Are paid trainings bad in themselves? Absolutely not. There is a group of people who actually have the skills and above all the knowledge they are willing to share. They are not typically oriented towards the business nature of activities.

It is wrong to sell "questionable quality of knowledge" for an inadequate price and promise golden mountains that (thanks to pseudo-trainers) you won't even see from a distance. But if you have misplaced it, I will write for consolation ...

Warning signals:

1. Promises of profits.
2. Offers are inspired by NLP tricks and marketing tricks.
3. Powerful discounts and discounts.

recommendations:

1. Check the opinions about the trainer on the web.
2. Use a free sample of materials and rate their substantive value.
3. Ask for a specific range of training and require specific knowledge.

# 5 - Forex signals and PAMM accounts

Banner promising over 2000 pips for a month

This point is actually a mix of the previous items. Trading signals is a service as old as Forex itself. Anyone who has failed begins to have doubts and thinks about seeking help from someone (theoretically) more experienced. And then it goes to signal providers or traders managing other accounts. Profit commission or subscription fee - in the case of PAMM, it is more often the former, with signals the latter.

They promise that we will make money, and the risk is small (see # 1), have magical vending machines and systems (see # 2), show us excellent results (see # 3) are very experienced and have already made a fortune (see #4). This is the accumulation of Forex fraud.

Are there good, reliable signals? Of course! The problem, however, is to find them. Looking at the eye, 10 websites on 9 will be trefable, and if you hit it wrong, even 19 on 20. So, estimate the probability with which you can make a profit using this method. It is possible, however, requires some practice and knowledge.

Warning signals:

1. The results on paper are too good to be true.
2. Trader takes a big risk and there are no consequences in the system.
3. A short transaction history is available and the results are not authenticated.

recommendations:

1. Observe the signals / PAMM and their results for a long time.
2. Learn to identify high-risk strategies and avoid them.
3. Do not believe in "paper" records of historical results and promises of regular, consistent profits.