There are many ways to avoid Forex scams. Traders should always choose a registered broker and never pay a subscription fee to join an unregulated brokerage. These brokers are not liable for any system glitches, theft of funds, or scams. In addition, they usually offer low spreads that are impossible to beat. Here are some of the most common scams: a trading platform with low spreads and no support.
First, check the registration of the trading floor. If the platform demands personal details and promises a downturning market, this is a sign of a fraudulent platform. Second, make sure the broker is legitimate. A deceptive forex platform will often be registered with the Securities and Exchange Commission (SEC). An SEC-registered broker is transparent and has a high reputation. So, if a broker asks for your personal information, do not sign up for the program.
Third, forex is not well regulated. Brokers are required to register with the Commodity Futures Trading Commission and the National Futures Association. This leaves the industry ripe for get-rich-quick scams. The scams can lure even experienced forex traders, promising high profits with zero risk. But be careful: some of these investments are fake and may not be worth the money. You should always be careful before making an investment.