Is forex trading a scam? The answer is no, if you use the right brokers and avoid the bad apples. Why is this so important?
Some less reputable brokers have unfavorable execution conditions for forex trading, meaning that your winnings could be less or your losses higher at these brokers than what you’d get at a more trustworthy provider. In extreme cases, they might close your positions in volatile markets by triggering a stop-loss. The real shady brokers won’t let you withdraw your money or will try to stall payouts.
To avoid the above problems, we have an up-to-date list of the highest rated forex brokers. Fees are also taken into account, so you don’t have to compromise on quality.
Don’t forget that all the brokers that you find on BrokerChooser are regulated by at least one top-tier authority. These include the UK’s FCA, the SEC/FINRA in the US, the ASIC in Australia and Germany’s BaFin.
What are some forex trading scams?
Now that you have a top-tier broker, don’t let a third party scam you. Always use 2-factor authentication to log in to your trading account.
If you get an offer from someone out of the blue, be very suspicious. We have received multiple reports and questions about trading groups active on popular messaging apps like WhatsApp or Telegram. Some of these groups advertise themselves as traders who offer ‘custodial’ services – they promise massive gains in a short period of time if you deposit money to their account. The best is not to engage with such groups, and choose a forex broker instead with a well-established background and regulation.
You can execute your own trades or try to follow what others are doing by riding their coattails. This is called copytrading (which is legal) and is offered by many forex brokers. It does not require letting anyone have access to your money.