Forex Fraud

What is Forex?

Before we go into the buying and selling of forex, we need to have a basic understanding of the forex market. Here is a quote:

Forex is a global financial market, which is related to the foreign exchange (FX) market, where participants trade directly and indirectly in exchange rates of one currency against another for one of the bank’s or capital’s accounts.”

In a nutshell, forex means that participants buy and sell the value of the country’s currency based on another country’s currency. Forex occurs when currencies are used for international transactions. Countries use a variety of currencies to carry out international transactions. For instance, a U.S. dollar can be used for domestic payments in the United States but also internationally in the United States.

Forex Scams

The most common types of forex scams are fake websites that make promises of high returns with little risks. There are sites with even free versions that promise high profits. Once they have the information about your trading habits, these sites will find any and every way to milk your money. Your funds will be siphoned off and converted to them, and this kind of fraud could go on for months. There are also website that will offer free money, but there is a catch in the form of illegal money wiring or collecting fees to execute trades.

Fake Forex Tips

Do the same thing as the sites that steal your money. The idea is to trick people into trading with them, and you have no chance to know how this works before you actually execute trades.

The Consequences of Falling Victim to Forex Scams

Losing your money is always devastating, however, not all forex fraud cases are perpetrated by criminals. In some instances, ordinary people just end up losing their savings, often times even when they are in the know about the risks involved with trading the forex market.

The major drawback of these scams is that there are many fraudsters who are willing to make sacrifices and offer very generous returns to gullible people. Forex Scam Victims, who end up losing their capital, often end up losing more than their initial capital. There are also some who fall victim to the same scammers time and again until they finally learn their lesson and withdraw their capital from them.

How To Avoid Forex Fraud

Whether you are new to this field or already familiar with forex trading, remember that you should know how the industry works before you do anything. A way to avoid getting scammed is to learn about the terms used in the market and check whether those terms actually exist or not. If you do not see such terms, you are probably dealing with a fraud. Don’t sell your assets just because someone may offer to sell them at a cheaper price. Your total position should always be in accordance with the demand for that currency. Don’t fall for fake offers and make sure to understand the product you are dealing with before you put your money into it. This will save you lots of potential losses.


So, the saying “the road to wealth is paved with shitty choices” is all the more true if you’re getting started in forex trading. It is important to remember that every trade you enter comes with a certain amount of risk that’s inherent in it and it is you who has to take the risks in your head or on paper by shorting your trade and your profit and loss are left to your own if you fail. It’s important to have enough knowledge of the market as this is the only way to learn and still make money without making any sacrifices.

Fortunately, we have tried to provide you with the best tips to build a solid foundation of knowledge for what you are about to embark upon and you will be able to do that step by step.

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