Identifying Forex Trading Scams And Keeping Them At Bay

Initially, Forex traders only had the market risks to fear. But today, scammers and cheats have made the Forex markets a dangerous place. The legitimacy of Forex trading is questioned by many due to the several lies scammers spread in the currency markets. 

Though there are a number of regulatory bodies like the NFA and the CFTC, many brokers still continue to lure in novices with false promises of profits. When they start off as beginners, traders are seldom able to differentiate between myths and facts, and as a result of this, they fall prey to the cheating broker's lies easily. As a newbie trader, it is crucial that you are aware of how scammers cheat in the markets and how you can stay away from them while Forex trading in India. 

forex trading strategies

 Here are some trading scams to stay away from:

1) Manipulating The Price:

As a beginner, you won't know more than half of what's going on around you while Forex trading in India. This gives brokers the perfect chance to cheat you by manipulating data. The simplest example for this is that they give you wrong entry/exit information, leading to your inevitable loss. However, they'll have made a good profit from the spreads paid! 

2) Empty Bonuses: 

Many brokers have the concept of bonuses. They promise loyalty bonuses to traders who trade with them for a long time, and even entry bonuses! While this isn't always a bad thing, because many reputed agencies do this too, cheats are always looking to connive the innocent trader into their schemes that ultimately drive the trader towards losses. 

3) Improper Stops: 

When you start off Forex trading in India for the first time, you'll not know much about placing stop-losses. Even with Forex Demo practice, this skill takes time to perfect. A bad broker will tell you to ask them for stop guidance and end up giving you wrong data yet again, watching you lose money as they make more. 

4) False Profit Goals: 

One of the easiest ways of tricking a trader is by promising money and profits. Brokers will approach traders, lure them in by promising them quick returns and telling that their investments will multiply overnight. However, that will never happen, and the trader's investment will only get subtracted overnight. 

As you begin Forex Trading in India, the market risks will keep you from seeing success. But with regular practice, you will see profits in no time. Reach out to our experts at WesternFX today and avail our world-class Forex brokerage. Backed by our seasoned professionals, you'll be able to avoid big risks and pocket profits consistently. Call us today to know more!