The Disease – Forex Scams
Investors, brokers, or traders who promise to make you exorbitant amounts of money in exchange for an up-front investment.
The Disease Deterioration
For a while, the scammer lives and works off of the money provided by clients, but when that runs dry, they’ll end the “investment” and take any remaining money
How Do You Feel
You may lose your hard-earned funds or potentially feel cheated by the false opportunities presented by the scammer
How Do I Know if I Have Been Infected?
If the investor or company does not return your initial investment, you may be a part of a forex scam or scheme
How to Avoid
Avoid “get rich quick” pitches, stay away from signal sellers and robot trading, and watch out for offshore brokers
Solution if Infected
If you’ve already been infected, contact one of our recommended Scam Doctor recovery companies
What Are Forex Scams?
Forex (short for Foreign Exchange) is a relatively unregulated trading market that, when appropriately manipulated, has massive potential for monetary gain. However, since its inception, the Forex market has been especially vulnerable to scams. While Forex scams have become less common in recent years due to new rules and regulating bodies, some still exist.
Types of Forex Scams
Since the CFTC and the NFA were created, the Forex market has become a much safer place. However, there are still some common-sense ideas that you should keep an eye out for, in addition to tips and tricks that you should know.
Today, some of the most common scams you’ll encounter on the Forex market include:
- “Robot” scamming
- Signal-seller scams
- Point-spread scams
- Ponzi/pyramid schemes and HYIPs
“Robot” scamming, as the name suggests, is a system where a computer makes automatic buy and sell decisions. Typically, you pay a fee to get access to the robot (or its profits). Many of these robots have not been thoroughly tested or approved and should not be trusted with your funds.
Signal-seller scams promise to alert you to the best times to trade in exchange for a fee or subscription. While some of these firms and traders are reputable, most are not.
Point-spread scams happen when different brokers in the forex market have vastly different “point spreads.” Typically, there is a variance between the bid and ask of a given trade, and this variance changes between various forms of currency. However, point-spread scams are an older type of fraud that we don’t see as much today.
High-yield investment programs (HYIPs), Ponzi schemes, and pyramid schemes are scenarios where a specific investor promises to give you a high yield in exchange for an upfront payment. Eventually, when the investor runs out of money, they’ll close down the scheme and take any remaining money.
Forex Scam Solutions
If you think you’ve been the victim of a Forex scam, contact one of our recommended scam recovery companies right away. While not all recovery companies are easy to work with, we have a vetted list of the most reputable options. These companies and individuals will do everything they can to return your stolen wealth to you.