There are different ways you can prevent forex scams and be part of forex market and forex trading to increase your wealth. The first thing you should do is ask several questions if you think that an investment plan suggested to you is a forex scam. Let us first start by looking at some such questions you need to ask.
Preventing Forex Scam ֠Questions to Ask
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Where they got your details?
Where they got your details?If you get a response that your details were selected from a list of good investors then it is a signal that it will be forex scam.
What risks does this investment have?
Most of the investments have some amount of risk apart from U.S. Treasury obligation and if you are told that there are no risks, then there is something wrong.
Can a written explanation about the investment be sent?
Ask them whether it will be possible for them to send you a written explanation of how the investment works. If it is some forex scam then you will see reluctance to giving anything in writing which can be used later on against them.
Can this investment be explained to your investment advisor?
In case of a forex scam the answer you will get that there is not much time for that or you should make such investment decisions yourself.
Is it possible to give names of people working in the company?
Many people doing such scams change their and companyӳ name quite regularly but even then if you start asking such questions, it will work as an alarm for them and they will try to move out.
Which references they can provide?
Check whether the names provided as reference are not just the company employees but established brokerage companies or banks that you can contact.
Where is the risk disclosure statement?
In many investments it is necessary that such investment disclosure is provided and you are required to sign it to confirm you understand the risks. A company doing forex scam will never provide such statement.
Will they trade the investment in a regulated forex market?
A fraudulent company will never venture into a regulated forex market as there are strict rules to prevent frauds and sanctions are imposed if set rules are broken.
Which regulatory supervision they are under?
In a forex scam the answer will be like the investment they will make does not come under regulatory supervision.
How long they are doing business?
Most of the forex scam companies do not have a long history to talk about as they make a profit by cheating others and then close the business. So if the company says that they are newly established then you should start checking for more details.
Where can you meet companyӳ representatives?
A forex scam company operating using telephone calls will not like you see his place of operations and spend time visiting you, so you can expect a negative reply when asked where to meet.
Conclusion
Thus it is clear that by being aware that forex scams do take place and having proper knowledge of how to recognize such companies, you will save your investment from falling into wrong hands.
