If a site promises you amazing returns on your investment and you’re told to “seize the day,” then it’s likely that they are part of a scam. A lot of these scams work by promising high-profit rates and returning more than 10X what people invest in them. But how do you know if a broker or website is legitimate?

Forex Scams Explained

FxScams.org is a website that aims to educate people about the various ways that people can be scammed by using their money.

A quick glance at their site will show you that they have an impressive number of scams listed, from the classic “frequencies” scam, where you’ll be asked to send your money to a company in return for a set amount of returns over several months or years, to the more recent pump and dump scams.

The reason why these types of scams are so popular online is because they are easy to do and largely unregulated by any government agency. There’s no law that says you must disclose your financial information before investing in the company and there’s no way to regulate the words used on these websites.

As such, these kinds of scams have become extremely popular and it’s almost impossible (or costly) now days for someone who has lost money on one of these sites to recoup it all back.

How to avoid Forex scams

The best way to avoid dealing with scams is by understanding how they work. One common way of doing this is through the use of technical indicators and tracking their own performance on the forex market.

What to do if you’re scammed.

First and foremost, never give out your personal information to anyone. If you do, you could be targeted by scam artists who will try to use your information to steal money from you.

Scams are everywhere online. They work at all levels of the web, from small blogs and websites with a few hundred visitors (like Blogspot) to large companies such as Yahoo!.

But once you’re scammed, what should you do? For one thing, don’t pay any money for any service or investment that seems too good to be true. If it sounds too good to be true, then it probably is. And if the site or company is offering something great, but makes no sense when compared with other options, then it’s likely a scam.

If the website or broker promises high returns on your investment without giving much explanation about how they will achieve this return or why it’s necessary for them to do so, then consider that a red flag.

For example: “you will earn up to 50 percent more than traditional investors.” Sounds too good to be true; if only 8 percent of people invest more in stocks than passive index funds, then some extra return isn’t going to make much difference financially speaking.