Forex trading courses have been an active trend for several years and we can hear different stories from all over the world. From people who have become successful traders to people who believe that Forex will only ruin you. Why exactly? What should you know about forex companies?
The main difference between the two is this: the former has done its research and formed itself or with a suitable broker, and more importantly, it works for a regulated entity. The others were burnt out from falling too fast and probably saw an ad online saying they would make thousands, if not millions, in a week. They fell in love with cheap advertising, but they paid a high price for it. Forex is a scam or not?
In this article, we provide a simple breakdown of what a scam can look like and what to look out for if you are serious about your investments and want to trade successfully.
Some forex companies are regulated and some scammers
Regulated forex companies want to ensure that you get the right help and security regarding your trading account. Of course, if someone called you out of the blue and said the same thing, how would you tell the difference? Take your time and review your online business.
Look for reviews, not just the website. See if the agent who called you is listed on LinkedIn and check agent reviews online. Be sure to visit websites dedicated to commercial company regulation and look up the company there. If they are on your regulated list, all is well and you can proceed. If not, it’s best to do your research and find a broker on your own. Unhurried.
This is what cheating looks like
No one gives money like that, especially in the financial market. You must give to receive. That doesn’t mean thousands of dollars. If you accidentally or out of curiosity click on an ad that says something like “Invest a dollar, earn a thousand,” it’s a scam. You will likely receive many calls from “brokers” claiming that you signed up with their company and that you need to pay a small amount to trade with them. Well, this is also the case with regular forex companies, but the main difference is that when you request a withdrawal, you get it instantly.
And like I said, regulated companies probably won’t run commercials like this and won’t call you from anywhere. With forex companies not trying to rip you off, you will contact them. You get a suitable broker. They will be there for you. Again, they’re probably already on the regulated list. Anyone calling you because you clicked on an ad should be suspicious, especially if they’re uncomfortable pushing you. If they’re too aggressive when they don’t listen to you, that’s a red flag. If you are financially unstable, avoid getting involved with these types of people. Take it easy, do your research offline and online (especially on the web) and start small.
When we talk about regulatory websites, we mean agencies like the NFA, CFTC, FSA, and many others. These authorities guarantee the return of the customer and make sure they get their money if something goes wrong (if the company they are dealing with is regulated). This is mandatory when checking out forex companies.
Forex demo accounts are a scam
We would disagree with that statement. There are demo accounts if you are a complete beginner. Their goal is to teach you how everything works and you are not trading with real money. You can see how everything changes and how it works. People often avoid this when they see that you know something about the market because demo accounts can give you the wrong impression that once you start real trading you will continue to treat your money as fake. Here people make mistakes and then say they will never trade again. Trading is an investment and you should always look at it that way. If you are a complete beginner, try with the help of your broker, but don’t do it for too long, and learn as much as you can in the meantime.
Since we are talking about runners
A broker who is dedicated to his work is also committed to his clients. You won’t see them calling you until you make a deposit and leave. They should advise you and provide 24/7 customer support. 24/7 as Forex is also traded 24 hours a day around the world and the possibilities are endless. If a prospective broker hesitates when you ask for withdrawals that should be advised. You should check his story. Yet, directed representatives are there to advise you to begin little, offer you guidance, and show you how to exchange. Ultimately, you’ll be comfortable trading alone, but it should be there too if you just want to trade a dollar.
What is your stomach telling you?
Don’t underestimate your instincts. If you’re a suspicious person in general, do this background check. If you’re nervous about desperately trying to make money, don’t let your emotions and impulsiveness work for you. They will most likely work against you. It’s when you get caught up in a mess called “scams”. If you feel overwhelmed when accessing the internet, try to set up a conversation where you can get the necessary information about trading. Perhaps the best option is to sign up for a short online course. This year many were featured on famous teaching websites. They are free and very informative. It will give you a certain sense of confidence. See where you go from there.
Forex companies are a serious industry that hates scammers as much as you do. The forex companies themselves cannot control all companies. That’s why you have regulators where you can verify the credibility of what’s being said over the phone or by googling a company. It is in everyone’s interest in the financial market to protect customers and make them traders who know what they are doing.
This means that you are aware that you can win, but you can also lose. Your agent should tell you this immediately. He will also advise you to start small and never invest more than you are willing to lose. That doesn’t mean you will, but there is one general rule you must follow if you want to play smart. If someone calls you and after a day or two tells you to invest everything you have because the time is right, you should know by the end of this article that this is called a “scam”. No one can promise you the world and give it to you just because you say so.