Whenever you’re looking for forex platforms to use, it’s important that you do your research and find the right one for your needs. The wrong platform could lead to losing money and wasting your time. There are a few common signs to look out for that can help you determine if a particular platform is a scam.
Spreads of up to 7-8 pips
Investing in foreign exchange is a risky business. Choosing the right forex broker is critical. A forex broker acts as a middleman between liquidity providers and buyers, as well as a conduit for you to exchange one currency for another. These days, you can find a variety of forex brokers. If you’re looking for a low-risk, high-return experience, you may want to consider one of the many top-rated forex brokers available.
Forex is a huge market, and you’re likely to find brokers touting their wares if you know where to look. However, you also need to be on guard. There are numerous fraudsters out there, especially when it comes to your personal information. If you’re looking for the best forex broker in the Philippines, make sure to do your homework first.
Promises of returns at all
Getting high returns from Forex scam platforms is not a reality. These bogus traders take advantage of a wide range of methods, including email marketing, advertising on social networking sites, and word of mouth referrals.
The forex market is a legitimate trading system, but there is always a risk involved. There are no central exchanges, so a large part of your funds could be lost quickly. This is why you should be wary of unauthorised forex trading firms. They promise big profits on your money, but they are not regulated. This means they cannot be held liable for withdrawal problems, system glitches, or money theft.
Focus on the downsides of trading
Taking the time to read through the many forex broker review sites available on the internet is a surefire way to find the best deals on currency and trading options. There are many forex trading platforms to choose from ranging from the equivilent of a neighborhood brokerage to a full service global investment bank. Some of these trading firms offer the enticing perks of working with a large bank while others have built up a reputation for being shady. Some even offer guaranteed stop loss orders and a large number of trading platforms and services to boot. It is best to take your time in the forex arena and never put your money where your mouth is.
Detecting red flags
Detecting red flags when using forex scam platforms is a critical skill to have. Investing in foreign exchange is one of the riskiest verticals, and criminals and shady operators continue to operate on the world’s financial markets.
One of the most common scams is the High Yield Investment Programs (HYIPs). These scams promise high returns with limited risks. Investors are asked to recruit more people and invest more money, with the ringleaders disappearing with the invested money.
Another scam is the managed forex account scam, which claims to offer expert forex trading services. These services are usually offered by fake brokers who imitate a legitimate forex broker.