There are many myths related to Forex. One famous myth is that Forex is just a deception and you can never make money through any broker. No doubt many scammers will try to deceive you in many ways but this myth about Forex is not true at all. Many brokers work within laws and regulations and you can work with them safely without any risk. You need to be careful to never fall for any scam. Here we will discuss the tips and tricks through which you can protect yourself from any Forex scam.
What Is A Financial Pyramid?
There are mainly two types of financial pyramids. One is the classic pyramid and the other is the fraudulent project.
In a classic pyramid, the income from a new user is given to the previous user. In this way the cycle continues but once new users stop joining the pyramid the whole system collapses. Many people remain unpaid. In fraudulent projects, nothing is paid to anyone. The scammers just keep asking for more time or make other unreasonable excuses.
A financial pyramid tries to target inexperienced investors because due to lack of experience they cannot identify a scam easily.
How To Identify A Financial Pyramid?
Some signs can help you in identifying a Forex pyramid scheme. Before making any investment look for the following points to rule out scammers.
The most famous technique that scammers use to attract clients is offering high profitability. You find a company that offers you to give unbelievable high profits then it’s time to back off. Many clients are trapped in such frauds due to their greed for having very high profits.
A Forex pyramid will have an opaque mechanism of making a profit. Scammers will not explain to you how you will make money by investing in their company. They will just offer you amazing profits. So don’t fall for any organization whose mechanism is not transparent.
Easy Method Of Earning:
Scammers look for inexperienced and lazy clients. They will offer such clients that you will have to do nothing and our team will work hard to make profits for you. People who want profits without any hard work are lured by such an easy method of earning.
To avoid such scams you should always check the authenticity of the company that is making you this offer. You should check whether the team members are real or not. Are their real statistics available on the company’s website? Invest your money only when you are completely satisfied.
A fraudulent company will not have the complete set of legal documents. Before investing your money in any company check whether the company is regulated by legal authorities or not. If you find out that the company is missing any legal document then don’t trust it.
Multi-tiered Affiliate Programs:
A big noticeable sign of the Forex pyramid is that it has multi-tiered programs. As scammers want to attract more and more money they design multi-tiered affiliate programs. They will ask you to invite more people to join the company and they will promise to reward you with bonuses if you do so. Don’t fall for such affiliate programs there is a risk that they will turn out to be scams.
Customer reviews can help you in catching a scam company. Before making a final decision about any company look for its reviews on various platforms if you come across any bad reviews then stop yourself from investing. Even if you see that there are no reviews available about the company that is assuring you about its experience and capabilities then it’s also a red flag.
Choose a company that is renowned and has good reviews by its users. But you have to investigate the good reviews as well, trust the reviews that are available at authentic and independent platforms.
A pyramid scheme will not provide you with any genuine contacts for communication. Before working with any company you should check their physical office and phone numbers. The team of that company should be present on social networks and their real contacts should be available. Check these contacts and communicate with the team to assess whether the team has enough knowledge and experience in Forex trading or not.
Forex Is A Legal And Safe Entity:
Although many scammers will try to lure you by different methods, Forex is a legal and safe entity. You can legally generate money through Forex you just need real brokers who can help you in accessing real financial markets. Hence Forex is not a scheme that is designed to scam you or steal money from you.
Is OANDA Broker Safe For Forex Trading?
OANDA provides a wide range of financial services to its clients. OANDA is registered in the United States and was found in 1996. OANDA is regulated by four authorities, UK Financial Conduct Authority (FCA) is the main regulator of OANDA. It has won many awards related to Forex trading. You can trust this broker as it is completely safe to work with.
There are many advantages of working with OANDA. It has a very low minimum deposit limit i.e. 1 dollar. It provides its clients with the most popular trading instruments and three trading platforms. There are no chances of risk as it has several reputable and trustworthy financial regulators. OANDA provides its customer with the facility of a demo account as well.
But there are some drawbacks of OANDA as well. The company’s website is not easy to use and it is poorly designed. OANDA provides low leverage to its users. There is a lack of cent accounts and bonus programs. OANDA focuses only on English-speaking clients. People who are not fluent in English cannot use OANDA.
OANDA is a very good choice for experienced traders for Forex trading as it is has a good reputation in trading. You can work with OANDA safely without any risk.