Forex trading is a popular investment method, but it also means that many people have fallen prey to scams designed to steal your money. In this helpful video by The Forex Scam Review, you’ll learn about the four main types of forex scams and how to avoid them. With these tips in hand, you can protect yourself from falling victim to these schemes.
Forex Scam Overview
In a nutshell, forex scams are illegal money-making schemes that use deceptive methods to take your money. A variety of different methods are used to make a profit. Here’s a quick rundown on the most common type of forex scams:
Time deposit scam
This is one of the most common types of fraud because it involves taking funds from people who have no idea what they’re doing. The most common way this type of scam works is through a “time deposit” service called “deposit forward.”
If you sign up to receive your time deposits online and then direct them to an external website, they’ll pay you daily interest in exchange for depositing funds into your account. It sounds like an easy system—until you realize how much money is being taken out of your account each day without you even knowing about it!
Types of Forex Scams
In this video, you’ll learn about four different types of forex scams:
1. The “chicken & egg” scam: This scam is all about getting your money by selling a product that is too expensive for the real value. It’s also easy to get caught because you have no idea how much money you’re actually putting into an investment.
2. The “null risk” scam: This type of scam works off the idea that someone will buy something and then decide not to pay for it. By making sure your product is worth more than its actual price, the scammers are able to make their sale (or steal your money).
3. The “pump and dump” scam: This type of scam takes advantage of people who have bought an overpriced investment on a stock exchange market like the New York Stock Exchange (NYSE). Instead of having faith in the company’s future success, they pump-and-dump stocks—selling them only when they’re ready to sell at big profits.
4. The “fraudulent seller” scam: In this type of fraud, a seller tries to get money from someone before he ever attempts to deliver any goods or services.
How to Avoid Forex Scams.
Forex scams are a growing problem for investors. In fact, forex scams accounted for up to $12 billion in losses during the first quarter of 2017 alone. And many people fall victim to these scams every year.
It’s not just one scam, there are four different types of forex scams that you should avoid:
Ponzi Scams Don’t understand what trading is? Don’t worry, this video will help you get up to speed. The beauty of Ponzi schemes is that they look legitimate and seem like an easy way to make lots of money. However, as soon as investors start getting paid back more than they invested, the scheme collapses, and investors lose all their money (one way or another). This can be a form of fraud where someone promises large returns by paying out small amounts at a time in order to take your money away from you faster than it can be withdrawn from your account. That’s why it’s important to learn about forex trading — so you’ll know not to invest money that you cannot afford to lose! Ponzi Scheme Testers You probably already know about the Ponzi scheme test.