The Forex Market is The world’s largest Financial Market. Many Traders, large corporations, and investors made this market a Trillion Dollar market by trading every day.
Thanks to Computer technology, the Internet, and Tech scientists, Forex Online can be accessed daily by a Forex Broker.
Is Forex a Scam or Legit?
As it grows rapidly worldwide online, many people are confusing about it, I mean this money-making trading system. The One question that is cycling in their mind, Is Forex a Pyramid Scheme?
The Answer is NO.
But, a Money Making Scheme, a Pyramid Scheme have been discovered around the Forex Market- just like they have around the Resal Estates Investment, Stock Market Trading, or any other legitimate investment.
In this post, I am gonna show you the 4 types of Forex scam which you have to Definitely Avoid. Many people asking, Can you get rich quickly from Forex Trading?
Basically, Most People find the Best Forex MLM Companies and Best Forex Broker and started Trading. But, unfortunately, a little amount of the population will take it in easy mode and they become a Scam.
How to Protect Against a Forex Scam
For Newbie Investor, it may be difficult for him to distinguish what real risk is: the reward ratio for forex trading strategies and unrealistic.
Only Deal with a regulated Trader and Broker is the best way to protect yourself from scams. Though, This is not a complete proof strategy because regulated firms have examples of working as pyramid schemes or Ponzi Scheme.
Flowbank gives an opportunity to Forex trading as a fully registered Swiss bank under FINMA, the regulatory authority of Switzerland.
You can identify a real Forex company because they will be controlled by reliable and reputed financial centers such as Switzerland (FINMA) or the United Kingdom (FCA).
4 Types of Forex Scam
1. Forex Pyramid Scheme
Pyramid schemes make money by hiring new paying members of the project, a little similar to Direct Seling Business. Owners and Management of Forex Pyramid schemes earn a huge amount of money when new investors paid fees and join the scheme.
Basically, they do not earn more by trading than Joining. It is called the Pyramid Scheme.
When the recruiters in this second-tier level will recruit more new recruits for the third-tier investors. The more pyramids you have, the more money you can make when new investors join. Pyramid schemes are illegal, it is crime and those who start them will usually go to jail if caught.
2. Forex Robot Scam
A forex robot has usually performed a computer Programmed. A special type of Computer algorithm has a place to trade in the Forex market. The most popular forex robot trading platform is Metradar.
Again, there are legitimate forex robots that make money as well as create forex robots that their creators created with the best intentions but not just make money.
Where the forex robot has become a scam it is known by the manufacturer that the robot does not make money. Yet, they promise that they will sell in any way and will make big profits for buyers. The most common way to do this is through a process called ‘curve-fitting.
With the power of computers, it is easy enough to find a trading system with entry and exit ideas that made speculative money in the past. But it only fits the robot with what has happened in the past.
3. Forex Ponzi Scheme
Ponzi schemes are fake investment management Companies. Like Pyramid Scheme, People will invest their money in this project instead of paying fees. The owner of this project will persuade investors to invest in some kind of Forex guru, usually called a ‘Forex Money Manager’.
There are many real forex managers who trade clients for money and set one percent and one percent of profits to do so. But, in reality, In the Ponzi scheme, there is no investment. The schemer will pay the investors from the money invested later – not from any return on investment to the initial investors.
For example, Bernie Madoff is the most famous American financier who executes America’s Biggest Ponzi Scheme.
4. Forex Signal Scams
Forex signals services are a subscription model which helps to trade to get alert of Buy and Sell in the Live Forex market.
The basis for this scam is almost identical to the forex robot scam, except instead of paying a one-off fee to buy the robot, signal services offer premium subscription service to receive the buy and sell alerts.
These SIgnal services are best used to get the best guidance to make profit possibility of buy and sell.
Can Forex Traders Scam you?
There is a principle in life, “If it seems true, it is very good”. You have used it in your forex investment.
One of the most common things of all foreign exchange scams is that they offer an unusually 100% guarantee of Large Profit. Large amounts can be earned in the forex market but there is always the risk of getting involved. So if someone pledges you too little or too bad a very big reverse, it’s not Probably, It is a Real Scam.
This is how you can think about it.
If anyone has such silly evidence of Forex trading, why would they share it? They will keep these to themselves and get rich trading forex.
And let’s just say that there were some very clever traders here who decided with great generosity to share this guaranteed trading method – everyone heard about it and did it.
Are forex traders legit?
Yes. Genuine Forex Trader a Legitimate. Forex Trader can make real profits by Trading in the Forex Market. Don’t worry, Forex Trading is a Real Business, where you will get the high-profit possibility if you played it in your strategy in a legal way.
What is the Forex Trading pyramid scheme?
Forex Trading Pyramid Scheme is a little similar to Multi-Level Marketing. From the schemer, the owner of the Pyramid Scheme will promise to earn passive income, financial freedom. These force you into a multi-level marketing project where you can focus on the cause of joining rather than trading Forex in this case.
Conclusion of Is Forex a Pyramid Scheme?
I hope you have got your answer. To make foreign Money money, Forex Trading is known. Anyone care trade on it. But Many new faces of this Investment Domain, want to know Is Forex a Pyramid Scheme? The Answer is No.
The forex market is not a pyramid scheme. Forex Trading is a zero-sum game where experienced traders and institutional market participants make a consistent profit while average traders blow up their accounts.
Now, I’d like to know from you:
Do you want to start Trading in Forex Market?
Did you face a pyramid scam?
Let Me know in the comment.
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I am Somraj Mondal. I am a College Student, Blogger, Networker, and Finding Ways To Make Money as a Student. I love to Explore new things and giving solutions to Problem which Problems People can faces. also, a Passionate Runner.