What is a forex floor? How to know how fraudulent forex trading ?, .. are issues we have to ask before entering the forex market. To minimize the risk of losing money, avoid sophisticated tricks of scammers. Survive in parallel with the fertile forex land, there will be pitfalls always lurking. Please consult CachChoiForex this article to gain more experience, before participating in forex trading.
How does forex floor scam?
How to identify fraudulent forex floor
Deceptive Forex trading floor works in many different forms. But basically they can be a variant of a Ponzi model. This model comes from Charles Ponzi (notorious crook in the forex market). Victims of these forex scam platforms are often newbie. Or people with little knowledge about the forex market. Or those with financial problems, .. Here are the types of scams that forex scammers often use.
Fraudulent forex trading as trust trusts
This type of scam is very common and easy to encounter if investing in forex in Vietnam. There will be a swollen trader, once a trader for hedge funds trading, .. Can bring quite high profits for investors. Call for investment trust with large capital, profit in% according to investors. This type of scam many newbie were caught in the net so many posts reflected. So it is best to carefully study this case before investing.
Phishing in the form of trading system, trading tools
With this form, they persuade players to buy trading systems. With many promises to generate high profits from automated trades. Even when you are sleeping, it is quite lucrative. It is considered to be a flexible automated trading tool or called a Robot.
To avoid being cheated, you should carefully check the trading system report before buying.
Forex floor says a way to do another path
Scammers will manipulate the bid spead market. Spead is the difference between the bid and ask price. Through the broker will reflect the commission of the traders. Each currency pair will have a different spead. But there are differences between brokers and spreads which are too far apart from the volatile market. In the long run, the profit from forex investment of traders will be gradually trimmed and very difficult to identify. But if you compare real spreads between brokers. Or choose brokers who have a license of a reputable organization, .. don't worry about this problem.
How to identify fraudulent forex floor
When you step into forex investment, you should remember that it was never easy. Scammers will always "seduce" you with the words "investment opportunities and easy money". Or even show you huge profits with little risk, .. To hit on your greed and optimism. Forex is really a lucrative market with more than 3 trillion dollars traded every day. But there are always risks of forex investment that you need to manage to succeed. Please refer to the following rules to avoid fraud:
- Forex has just been established but there are many attractive incentive policies: To attract investors to participate, they offer many attractive incentives.
- Exchanges with no clear legal status: Prestigious forex brokers always have clear legal evidence on their trading platform. Deceptive forex brokers will not be registered with any management organization.
- Always ensure high profits: They will show a fixed income from 20% - 40% of total investment. This is absolutely impossible.
- Forex floor has a ban on operating from the government management agencies: Forex trading violations that adversely affect the market will be banned from operating.
- Exchanging spread spreads: Spread fees are an important factor leading to trading results.
How to prevent fraudulent forex floors
The forex scams all have in common is offering attractive profits and of course not real. The best way to avoid losing money is to thoroughly research everything before deciding to invest. Or when someone acquaintances introduce a great investment opportunity, they can be victims. Do not trust anyone who says you guarantee a high profit of 20% / month. Check the information on Google of any broker or trading system. If the information is unavailable, or fake, stay away for safety.
Conclude
When participating in the forex market, you need to be very alert, wise, and carefully research before deciding. Pitfalls are everywhere, you should remember that success must go through difficulties and hard work. Should deal with exchanges with transparent policies and clear licenses.
Good luck!
