The Forex market is the most liquid and largest financial market and always presents unique opportunities for the traders. Especially thanks to the leverage system, more and more people have been entering the market in order to benefit from low costs and high profit possibilities. While the market is getting more and more crowded, there will always be some people who try to exploit the good nature of the investors and look for Forex scams. These scammers have increased their activity and they always find a new way to scam others.
Besides the most usual scam types like pyramid schemes and pig-butchering scams, the Forex market recently has experienced something new: cloning the licit brokers. What developers do is create some apps that are almost the same as the apps of other famous brokers such as Tickmill, FXTM, and so on. They use these brokers’ names, logos, and different types of information in the apps. The only difference comes from the data parameters in order to attract more people.
You can ask how these scammers reach so many people even some legit brokers cannot draw the attention of traders. The answer is hidden in the power of the Internet. The frauds share QR codes and links on the online platforms and many people start to download and use these fake apps with the trust of the licit brokers.
After you start to trade on these platforms, they make you transfer more and more deposits with the illusion of increasing profit in your trade account. If you try to exit at some point and demand money withdrawal, they ask for the commission while claiming that you give incorrect information or your account will be suspended.
How To Avoid These Forex Scams
Step 1: Nearly all brokers use MT4 or MT5. You should quit immediately if there is no sign of MT4 or MT5 in your downloaded app.
Step 2: This is a general reminder: Never open any link sent by a stranger and look at the official websites of the brokers if you want to download their apps.
Step 3: There is always a problem with the design or functional layout of the cloned platforms. Stay alert for shoddiness.
Step 4: Noone gives you high returns as a gift. Do not let the high profit possibilities blind you.
Step 5: Withdrawal fees are always a signal for Forex scams. Be sure that your broker does not ask for withdrawal fees. Forex Scams: How To Detect And Avoid Them?