The web is littered with hundreds, if not thousands of investment scams, and they are becoming for sophisticated everyday. A big problem is that people are so interested in earning money, that they do not do proper research first.
With investing online, it doesn’t matter if you are looking at a Stock Broker, Forex Broker or Crypto Currency Exchange, the rules of investment are the same.
Your Broker is a Total Scam if:
- They use words like “Safe & Secure” but do not have a valid license.
- They call and pressure you to invest $5,000.
- They offer you a “Managed Account” with steady returns.
- They tell you that they doesn’t need a government license.
- They give you problems, or ask for a profit tax when you try to withdraw your money.
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If you are looking for more brokers to choose from, go and read all our Reviews of Licensed Brokers.
Avoid Becoming an Investment Scam Victim
The way you can protect yourself from an online investing scam, is by properly researching your online broker. Start by asking yourself these questions.
- Does my broker have a valid license from my governments financial regulator? (CFTC America, FCA United Kingdom, FSCA South Africa or Australia ASIC.)
- Are the brokers constantly calling me and asking me to deposit money?
- Does my brokers license protect investors from my country?
- Can I easily withdraw my money?
The second thing is to beware of fake Expert Advisors and Trading Systems.
- Never use an automated trading software, before you can test out its functions.
- Do not believe any testimonials, because they are all fake and usually illegal.
- If a software or person opened your account for you, they can access to your account.
- Most Important! Historical results are never an indicator of future profits.
Look at the most popular trading robots.
Investing scams are one of the oldest scams in the history of the world, and the internet has only helped the scammers. With the growing popularity Crypto investing, there has been a surge in complaints about bad Online brokers.
Make sure to properly do your research, and don’t be naive and think you can make $500 a day, by doing nothing. For every Forex broker you find, and every trading system you hear about, there are fifty more which offer the identical product.
When choosing a CFD or Forex broker, make sure you are using one that is locally licensed and regulated, choose one here.