Have Eyes Like a Hawk Spotting Forex Scams (Part 2)

Forex markets can be extremely volatile, and margin trading carries a high risk of loss. That is why major regulators require brokers to post risk statements on their websites to warn potential traders about the risks of trading forex and CFDs. If a broker is seen promising bonuses such as a $50 bonus on account opening, or get $1,000 bonus when you deposit $2,000. These promises of rewards are intended to divert the trader's attention away from the necessary due diligence. Most major regulators prohibit brokers from making any offers.

Some forex brokers sell trading signals and robots that notify a trader when to enter a trade or close a position. These could be a good assistance to pair with technical analysis but they should not be relied on entirely to predict the market. If a broker or company sells signals and robots without providing any proven backtesting results, it is highly probable that these tools are packaged to make quick profits from retail traders.

If you are unable to withdraw funds from your account at ease, it may be time to start worrying about your trading capital. When this happens, if a broker gives you a vague explanation or an unclear apology, or tells you to make additional payments, such as account management fees, withdrawal fees, or tax payments, you should reconsider your broker choice or, better yet, pull out entirely before losing more money.

In summary, to avoid becoming a victim of a foreign exchange trading scam, it is recommended that you work with a regulated broker who has a well-established reputation whilst holding valid licenses and regulatory status, as well as positive feedback from previous and existing investors. While the allure of quick returns is difficult to resist, it is best to err on the side of caution and conduct a more thorough research process. To do this easily and efficiently, download the free WikiFX mobile app or visit www.wikifx.com wherein you can find all verified and reliable information about your selected forex broker(s) with just a few clicks.