4 Red Flags In Trading And Investing That You Should Avoid

Forex trading is a deregulated trading market that processes over $ 1 trillion liquid assets a day with future and currency options that could lead up to the generated earnings of $5 trillion a day. Seeing this lucrative amount will surely attract a lot of investors and traders to chip and expand their portfolio. And together with the increase of traders and investors, the number of scammers also increases. Scams happened when first time traders were lured by fake brokers with quick fortunes by using their secret formula to success. And for you to be able to identify them, read the red flags so that you will be able to prevent getting your money swindled.

Red Flag No. 1: They Offer Systems That Can Identify Favorable Products For Buying And Selling

Most scam artists are signal sellers that offer system analysis services. This is done by encoding a data in their system to generate a new one that deciphers the products that are favorable for buying and selling. What makes this unreliable in the first place is that there are systems that heavily rely on the technical analysis while others come from mainstream media. More importantly, if this system has the power to determine which stocks will give ROI, forex agencies would not dare to exploit the system, instead, use it for their gain.

Red Flag No. 2: Hyped In Forex Investment Management Fund.

It is considered a red flag since it demands total control on account of investors with a promise of high returns. However, in exchange, you must share the profits with him or her. In the end, once the trading becomes successful, the investor often ends with nothing while the scam artist uses the investor’s fans for their gain.

Red Flag 3: Bad Brokers

Since the Aussie forex market is entirely unregulated, some brokers do not deal with their investors fairly. To avoid this, investors are highly encouraged to trade with brokers stock market trades that are subjected to SEC and INRA. In this way, no broker would dare to defraud investors in exchange for their licenses.

Red Flag 4: 100% Returns Is A Trap

Most investors that are often scammed are those who want quick earnings and get easily persuade by false returns. When something sounds too good to be true, it only means that the broker is offering you a false return. Keep in mind that to get a fantastic return, it takes a lot of time and effort in observing the movements of the stocks.

Red Flag 5: Brokers Won’t Allow You To Withdraw Money From Your Account

Most scam artists will not allow you to withdraw your money from your account when a problem exists in the trading station. You can see this when you attempt to withdraw, but the warning sign keeps on flashing. So whenever there are promotional materials for tradings that offer a high return for the low capital requirement, be wary that it is a scam.

These are the red flags to look up for you to be able to identify if the person you are talking will scam you or not.

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