There has never been a better time to get involved in the world’s forex market than now. With just a click you could be selling or buying different currencies like the dollar, pound, euro and many more. However, have you paused to ask yourself important questions such as, is the market free from fraud? Is there a possibility that I can get scammed? Both questions have one answer which is yes!
Being the largest financial market in the world, the forex market has a record of over $5 trillion worth of transactions every day, this is according to ‘admiralmarkets’.
Many people get rich by solely trading forex because the market is lucrative. Although not easy, having a sound trading education, properly funded trading account and an understanding of risk management techniques could help.
With the lucrative nature of the forex market, it is only normal that some fraudulent behaviours emerge, but we do not want you to fall victim to any. So how can you avoid fraud when trading FX?
Here are three tips that can help you avoid being scammed when trading fx.
1. IF IT LOOKS TOO GOOD, AVOID IT.
There is no easy money in the forex market. If anyone promises you automatic returns and big profits in no time, that is a red flag. When trying to trade you must avoid loud talkers, fraud-free FX traders and agencies and focus more on the details of the market.
Every FX trader who promises exorbitant gains, easy money, quick wits to become profitable and not patient, must be avoided.
Easy money? No way! There is no easy money here.
2. EDUCATE YOURSELF AND RESEARCH THE FX TRADER.
Most of the time, all it takes is a Google search to educate yourself on a subject you are not so knowledgeable about and find out more about a trader, agent or agency that trades in forex. The internet can save you a great deal from falling victim to fraud in the market.
Proper background search must be done and questions must be asked. It is saver to deal with FX-traders who are registered and whom you can identify at an office space.
When running a background search also look out for customer reviews online about that trader you are about to deal with. Customers usually put up their experiences about companies online whether good or bad. This can help you know the agency much better and guide you to making an informed decision.
3. ONLY SHARE YOUR PERSONAL INFORMATION AFTER VERIFICATION.
We live in an era where one piece of information about an individual can reveal everything about that person. Take for example, your BVN or your ATM card and the pin is available to someone else other than you, such a person can do whatever they want with your finances across all your accounts. Because trust is a vital virtue in every business dealing, we strongly advise you do not share personal information with unverified companies.
It is advisable not to work with an individual or a company that refuses to provide you with their background information. Always do a quick online check to verify the credibility and legitimacy of that trader.
The urge for quick and easy cash will always be present but you must make sure you fully carry out your due diligence to avoid being scammed.