Unfortunately, scams in online trading are the order of the day. For this reason, as we are experts in the field and for years, more and more readers have been following us with interest, we decided to write a small guide containing ways to avoid trading scams. First of all, to be able to fight an enemy, you need to know: what are the scams in online trading?
First of all, some operators who call from call centers take advantage of the fact that you do not know the subject. They say that you don’t need to do anything, that it’s all simple and that it only takes a few minutes a day. It doesn’t take anything except one thing: money. Of course. If there were also the guarantee of earnings, that would be the maximum. The great thing is that sometimes someone proposes it as well.
The second type is given by unregulated brokers who propose to trade with their platforms even to customers who could not do so. For example, a broker that wants to operate in Europe should have various certifications with CySEC or with something that is valid in Europe. In addition, the registration in Conrsob as well as the pledge to obey the MiFID 2 and ESMA regulations.
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The third is the one that includes websites that pretend to be brokers but are actually quite different. For example, sites that sell signal services etc..
The fourth is the most annoying of all and is given by those sites that focus on the enthusiasm of the possible high earnings through messages of extremely optimistic type, in which you pass trading as a business that you can do for a few minutes a day but offers thousands of euros of profit every day.
Probably, when you’re reading all these types of scams, you’re probably asking yourself “who’s going to fall for it?”. Apparently, many people fall for it. And that’s not good. It’s not good enough for anyone, let alone us who do our job as informers and bloggers in a way that complies with the rules, offering more and more guides to start trading with a level of information needed.
Avoiding Trading Scams. Method 1: Only Choose Famous Brokers
The first way to avoid trading scams is to choose a known broker, who is known to be trustworthy.
Please note that you will always find comments against a broker. Even the most transparent of brokers may be faced with such comments:
- You never earn (there is something wrong with the trading strategy or training of those who say so)
- Cannot be withdrawn (probably writes on behalf of the competition or is someone who has encountered temporary technical problems)
Now, taking into account that a broker with a recognized license (e.g. CySEC), and that presents on its homepage all the licenses with which it operates in various territories, you can now enjoy these comments as much as you want.
The fact is that a legal Forex broker, who respects all laws, is not a so-called fraudulent broker.
So, to summarize: rely on the most recognized brands. These, do not need to call you by phone unless you are already registered and are calling you to help you in the process of starting to trade.
- You signed up and they called you from the same broker you signed up with: that’s fine. You can still decide whether or not to continue with the membership.
- You have not registered and they call you: that’s not good. You are free to do as you wish, but it will not start as your own initiative. If you are not interested in trading or do not have time to get it right, forget it!
Avoiding Trading Scams. Method 2: Find Reliable Sites
The second method is to rely on someone reliable to guide you in your choice, directly or indirectly.
- The direct way is to ask for it personally
- The indirect way is to take advantage of the informative material that consists of articles, video tutorials, reviews written by websites that you feel quality or trust.
To evaluate a website, you need to know how much of it is dedicated to training, evaluation, updating, etc.. In addition, there should be an open channel of communication at all times.
As for tradingmasters.io, for example, in addition to numerous guides on individual brokers, trading, CFDs, Forex and every category of tradable assets on our site, we have also launched a Youtube channel with practical guides on which you can comment and receive our support/feedback on any topic touched.
Our goal is to provide you with comprehensive training for each topic and each platform so as to help you in the process of understanding the operational dynamics, which still take time.
Avoiding Trading Scam? Method 3: Feet On The Ground
Do they promise you quick results? Stay away from it. Do they promise you secure profits? Stay away even more.
It is true that trading brings results in the short and very short term, but by “results” we must understand both positive and negative ones. Those who do not inform themselves about this will probably get immediate negative results.
There are no magic methods, tricks and so on. Online trading, although it involves a “quick game”, brings results that should be evaluated at least in the medium term.
For example, today I can earn, tomorrow I lose, the day after tomorrow I lose and then gain profit again in a few days. A balance should be made periodically: week after week, month after month.
Once you have reached the limit of your planned budget, you have to draw the sums: is it earning? Are you losing?
If you are losing you can proceed in three ways:
- Change the strategy
- Study/deepen more
- Forget it