How to avoid forex trading scams in 2022

How to Avoid Forex Trading Scams in 2022

aximtrade broker

The forex community is always concerned about the rising of forex trading scams in the last few years. In 2022 as technology advances, the methods and tactics of scams are getting more dangerous. Therefore, the first step in the forex world is to be able to evaluate the financial service providers and detect any scamming or fraud activities.

Commonly, forex traders tend to rely on word of mouth and broker reviews websites to determine which broker to trade with. The online trading business is similar to any financial service and it is full of different types of fraud activities and scams. However, there are several more factors to consider if the broker or service provider is trustworthy. In this article, we have collected most of the valid points to evaluate to overcome this dilemma of forex trading scams.

Most Important Questions to Ask to Avoid Forex Trading Scams

Beginners and uneducated traders are the most common targets of forex scammers. So the best way to avoid forex trading scams is to take your time, don’t rush into decisions, and learn as much as you can. To avoid being a victim of forex trading scams, you need to ask the right questions and conduct your own investigation. Do not hesitate to ask yourself these questions before you open a forex account.

Is the broker regulated? and how trustworthy is the license?

Choosing a regulated forex broker is a major decision in your trading journey. The term regulated forex broker simply means that the broker’s financial activities are monitored and supervised by financial regulators, whose primary objective is to prevent fraudulent activities and significant risks in the forex market. The regulatory broker ensures that the client’s privacy is protected and the disclosures of financial information are accurate.

A visually appealing website does not guarantee that a forex broker is legitimate. The best way to determine whether the broker is regulated is to thoroughly examine the broker’s website for certifications and look for online reviews. Check out this AximTrade review to find out how AximTrade sets itself apart as the most regulated forex broker.

It’s also a good idea to check the broker’s website to ensure that it contains accurate information like company history, rules and standards, regulations, certifications, and financial data. In this way, it is ensured that the forex broker abides by the set rules and standards and that they do not engage in illegal activities.

Is the client information secure and well protected?

As technology evolves, cyber threats are becoming more common and phishing attacks are reaching new levels. Recently, major tech companies and financial institutions are having data breaches and client information is getting exposed online. Thus, it is highly important to check the security procedures when you register for a new forex account. In 2022, cyber security technologies are advancing tremendously and improving fraud prevention and suspicious behavior.

Essentially, to avoid forex trading scams is to check the broker registration process and make sure the domain is secured and doesn’t lead to suspicious redirection. Two-factor authentication is highly crucial to keep the account secured. Trusted brokers always provide high measurements for account security and strict rules, as they are legally obligated to follow these terms.

Top tips to protect your trading account

In contrast, the traders should avoid any activities that can reveal their privacy or account information. These require following the strict procedures including:

  • It is recommended to create strong passwords
  • Never share account details online or with a third party including money managers. The majority of brokers usually provide dedicated access and separate password to money managers or account managers
  • Avoid using public Wi-Fi, unprotected networks, someone else’s machine or mobile while trading
  • Be aware of fraudulent emails and avoid clicking on any links sent via SMS or emails

To ensure your security and protection from forex trading scams, choosing a trusted broker is crucial as they follow strict authentication procedures for accessing your forex trading accounts.

Are the funds protected and transactions secured?

Protecting your funds in segregated accounts is a must for online trading accounts. Check the service provider information to make sure that the client’s money is held in segregated client bank accounts in accordance with the Financial Services Commission client money rules. It means that your money is not tied to any hedging counterparties and is protected against financial risks.

Forex Trading Scams From The Editor

As you evaluate the forex brokerage services, you need to remember that this service provider is also your e-wallet. This means all your transactions under this account should be secured and not shared with third-party or data breaches. Securing funds and transactions should be your main concern as a forex trader to avoid any trading scams. The broker should be providing a highly secure environment with reliable payment solutions and fast transactions. Check the withdrawal once you launch your account in order to test the process and the speed of transactions.

Is the forex broker well represented online?

Forex brokers that are well-represented on the Internet are always more trustworthy. Checking a forex broker’s website can give you a sense of whether they are safe and easy to work with. Having a good social media presence also indicates that the Forex broker is trustworthy, and their online presence is well kept. 

It is crucial to ensure that the broker maintains an active online presence and provides ongoing news, educational content, and weekly outlook and analysis across all platforms. You can also check the broker’s rating by looking at threads and listings on forex websites and communities like Trustpilot, which can be helpful.

Is the broker offering automated trades and signals to guarantee profits?

Forex brokers who promise risk-free trading or say “make 80% returns on purchasing trading signals” are nothing but scammers. In reality, these promises are merely red herrings meant to distract traders from conducting necessary due diligence. Remember that a trustworthy broker does not provide any financial advice, trading signals, promise returns, or recommendations to its traders.

Forex advertisements that offer large amounts of gold as a reward for making deposits are another type of forex scam. It is also a red flag if a forex broker appears to offer automated trading done by a robot or algorithm that promises to increase your earnings. The purpose of these promises and gifts is to trick you into losing your money. Keeping yourself informed about this is one of the most important things you can do to avoid forex trading scams.

Is the broker well recognized among forex traders’ communities?

It is easy to spot a Forex broker among the forex traders communities if it is trustworthy and follows ethical business practices. You can check the reputation of a Forex broker by looking at Forex forums and social media channels, as these are the platforms that traders use to interact and discuss their queries.

By browsing the forex forums and social media forex groups, you can also get a sense of the broker’s reputation by reading the reviews, allowing you to avoid forex trading scams.

Is the broker providing analysis and educational materials?

Forex brokers with a solid foundation and well-established reputation are meant to protect their traders against Forex trading scams. Therefore, they provide access to educational materials, seminars, webinars, informational videos, and effective trading tools like indicators, analytic tools, economic calendars, and reliable news sources.

You can differentiate reliable brokers from scammers by observing the above factors, as scam brokers don’t care about educating their traders. In contrast, a reputable broker will always keep you informed about the forex market and work in your best interests.

Is the broker recognized with Forex Awards?

Every year, globally, the best and most regulated Forex brokers get rewarded by ratings for providing a cutting-edge trading experience to their customers. Therefore, it would be wise to choose a recognized and awarded forex broker since they possess good ratings and ensure a safe and profitable investment.

There’s a possibility that a scam broker will get fake awards from unreliable media sources. It is advisable to double-check the claimed awards to verify their legitimacy and avoid Forex trading scams.

Is the broker providing a partnership or corporate sponsorship for events or brands?

The majority of corporate and sports events used to partner only with a trusted broker committed to excellence and professionalism. As such, if you are looking for a Forex broker, you can also evaluate their credibility by examining their partnerships with brands, sports events, trade shows, charities, and non-profit organizations.

However, remember that just because a company pays for their name to appear on a jersey does not guarantee their reliability, and you should always check their regulatory records to determine their credibility.

Is AximTrade Regulated and Legit?

Yes, AximTrade Pty Limited is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 001294600. The AximTrade Group is regulated in various jurisdictions and represented by various entities.

AximTrade LLC is incorporated under registration number 328 LLC 2020 by the Registrar of Limited Companies, LLC registered by the Financial Services Authority of Saint Vincent and the Grenadines and by the National Futures Association (ID: 0539713). In Addition, the AximTrade Group is represented by Huntington Services Limited is an IBC registered in New Zealand, and is authorized as a Financial Service Provider (FSP) with license no. FSP6317469.

AximTrade provides a secure environment for financial investors and clients by ensuring industry compliance with the highest international regulatory standards and best business practices. The company provides a high level of protection of the interests of the general public and market participants. AximTrade applies the rules of client privacy and confidentiality of legitimate business transactions.

Trusted forex broker AximTrade

How to Avoid Scams and Choose The Trusted Forex Broker?

A forex broker is a company that gives you access to a trading platform to buy and sell currency pairs. To trade forex, you need a forex broker. Unfortunately, not all brokers are honest and legitimate. Some try to take your money or charge excessive fees. Some are even unregulated, putting you at risk of scams. Here’s a quick overview of how to avoid Forex trading scams.

  • Check the forex broker website and conduct an extensive review of the account types, trading conditions, regulations, the company information. All this information should provide useful information and there is no hidden information or unclear conditions.
  • Just like other types of scams, Forex trading scams are usually targeted at those with little knowledge of the market. So, if you enter the foreign exchange market without any basic understanding, you are most likely to make yourself a victim of scams. The good news is that you can avoid this fate if you try out forex with a demo account first. As your understanding of foreign exchange grows, you can then move on to a standard account.
  • Research the broker’s reputation online and check negative and positive reviews. It is important to remember that there is no broker without negative reviews online. Some negative reviews can be about forex scams such as losing profit or account closure. The most important information to look for in broker reviews is the validity and if this could be valid or also negative reviewers who want to gain profit from the broker by conducting abusive feedback.
  • Look for sentimental context across the internet and check the social media profiles of the broker. The trusted brokers are usually well represented on social media and provide useful educational resources and analysis to their traders. The brokers who don’t provide educational content or proper guidelines for their services are usually suspicious and can be scammed or untrusted.
  • Choose the forex broker which provides full control of your personal area and direct access to trading platforms. Avoid white label companies and local agents who don’t provide direct access to funds or trading history or don’t have their MT4 or MT5 license.
  • Avoid brokers with scam offers such as profit returns or automated signals. Trusted forex brokers are usually operating under strict financial licenses and it is illegal to provide trading recommendations to their clients. Also, it is important to avoid brokers with unrealistic offers and prizes.
  • It is also crucial to avoid forex brokers who offer high spreads and take more commission for making a trade. To avoid forex trading scams, you need to become familiar with the costs associated with trading forex. You should choose a broker that provides the lowest spread and commission.

In your pursuit of finding ways to gain success in the trading world and improve your revenue, it is possible that you will come across the odd case of forex trading scams. It is necessary to conduct your own investigation and research before you make rash decisions with your hard-earned capital. Choosing a reputable forex broker also ensures that your investment is relatively safe and allows you to generate a substantial return on your investment.

AximTrade – A Trusted Broker by Over 300,000 Clients

AximTrade is a globally competitive forex broker that guarantees premium services and has won the trust and satisfaction of more than 300,000 clients worldwide. The highest level of client financial security, fast & convenient payment options, and 24/7 customer service in local languages are some of the ways AximTrade exceeds the expectations of its clients.

Offering a highly advanced MT4 execution and Copytrade platform, the company has achieved regional and global recognition for its competitive trading conditions, low spreads, minimum balances, reduced financial commitment, diverse account types, and lucrative forex bonuses. With AximTrade, you can trade 49+ Currencies, Indices, Metals, Energies, and Cryptocurrencies.

Open a CENT account with one of the best Forex brokers in the market, where the minimum deposit for this account is $1 while the maximum leverage you can use is 1:2000.

aximtrade broker