Forex is a massive market with a whopping above $6 trillion trading volume. Similarly, big money attracts big scammers using secret algorithms to trick you. So, before investing through any platform, make sure you have researched the best and most recognized Forex brokers in South Africa.
Five quick indicators to identify a scam broker:
You can either be scammed through robot trading, withdrawal scams, or other ways. Follow these quick indicators below:
- The broker doesn’t have a license.
- The broker site doesn’t have complete information.
- The brokerage offers guaranteed high returns.
- Reports from previous clients are in the reviews section.
- The customer service office doesn’t respond.
Ways to avoid Forex scamming:
Here are some easy ways to avoid scamming in different ways:
- Consult a regulated broker
You should know how to check the authenticity of a broker before you ask for trading. You can check a regulated broker by going to the reviews section and looking for whether any person has reported that platform or not. You can also check it from regulatory bodies listed on various sites like FCA authority, ASIC authority, FINMA authority, etc.
- Don’t get excited about rewards and bonuses by opening an account.
If any site guarantees you big profit margins and an attractive bonus for opening an account and trading through their platform, something is wrong. They would offer you $100 per day from an investment of $500 or by giving you actual success rates. In Forex, remember that a good broker never promises small or huge returns. If he is promising, then it is a scam.
- Check their authenticity claims.
Some brokers claim to be the award winner of a year for being the best broker. Go to google and search for their legitimacy. Scam brokers give this hint to you purposefully to get caught red-handed.
- Offering you automatic trading signals for orders
An authorized retailer will never go for a robot or algorithm-based system. It could be beneficial, but it risks the investment as the algorithms are spontaneous, which vanishes instantly. He will use his experience to trade rather than offer your automated system.
- Asking for your personal information
An authorized retailer or a broker platform will never ask you for your bio-data or personal information regarding your account. If a broker site asks for it, it will probably scam you.
- Look for the company’s bio-data
If the broker platform is authorized, it will provide contact information, cite their office location and details about time, and promote good reviews at the site. A scammer will never offer such things to not being chased and investigated later.
What to do if I am Forex scammed?
If you have fallen into their net and they have looted your money, then quickly reach your bank to block your account or manage to do a transaction. Other than this, contact FCA or other commissions in your areas to recover your money if possible. Also, report the site so that others might not fall into their trap anymore.
Bottom line:
If you seriously consider these above methods and do not get overwhelmed by offers or test your luck by knowing everything, you are risking your money. If the platform proves itself in just the abovementioned ways, you can trust it blindly. Otherwise, go for another option for trading.
