What is Forex?

The Forex market is a legitimate trading market where the world’s currencies are traded. It is not a scam in itself. Without the Forex market, it would be difficult to trade the currencies needed to buy imports, sell exports, go on holidays or do cross-border business. However, with high leverage positions which, in theory, have the potential to make traders a lot of money & loose a lots too and because there is no centralized/regulated exchange, scammers take advantage of the situation and the inexperienced traders desire to enter the market.

The Forex market is a ‘zero-sum’ market, which means that for one trader to make a profit, another trader will need to make a loss, the Forex market does not itself add value to the market. Because a lot of the currency movements are directed by large well-financed corporate institutions and banks, who are better informed about the market as a whole, the undercapitalized trader is always likely to lose. Institutions and large banks trade in Forex daily; to make a significant profit in this market takes a considerable learning curve.

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the credit market.

The main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency’s absolute value but rather determines its relative value by setting the market price of one currency if paid for with another.

How to avoid Forex scams?

The single most important thing an individual can do to avoid being scammed is to learn to trade on the Forex market properly. The difficulty in this however is finding trustworthy brokers/teachers of Forex that can be trusted. The amateur must know that the broker has made the money he/she says they have, due diligence is the key here. The Forex market is not a casino but a very serious market where trillions of currency units are traded daily. Use demo accounts and learn to make long-term profits first before trading for real. Be aware that like any professional skill, it can take years to master the Forex trade properly. Any claim that says ‘you can make money quickly’ should be avoided.

Fraudsters will often use the name and registration number of an authorised forex broker. You should always check the FCA register and use only the contact details listed on their website. It is common for scammers to give reasons why these numbers are wrong such as being out of date.

Ask to yourself:

• Is the broker regulated?
• If regulated, how trustworthy is the regulatory body?
• Is the broker offering profits or rewards for opening an account?
• Is the broker offering a cash bonus for opening an account?
• Is the broker offering automatic trades or signals to guarantee profits?
• Is any credible information about the company included on its website, such as company history, financials, HQ address?
• If awards are cited, can I verify their authenticity?

Only trade with regulated brokers only!

Scammed? What to do!

1️⃣ Collect evidence by taking screen shots of all trades, messages and communications, money transfer addresses, their websites, etc.

2️⃣ If you used a bank card to make a payment to a scammer, contact your bank immediately. Tell them that you used this card to make a payment to the scammer and ask if they can refund your money trough a Chargeback process.

3️⃣ You can report the company/person who scammed you to the appropriate authority (FCA, CFTC, Securities and Exchange Commission etc.) or by contacting us. We will make a review and expose the crooks. May warn potential victims.

⚠️ Reminder: If you deposited your funds on a platform and they ask you to pay a “fee” or “tax” in order to withdraw your funds do not pay anything! It’s a trick to steal more funds from you.