There are many myths and misconceptions related to Forex. One famous myth related to Forex is that people assume that Forex is a deception and you cannot make money from it. It’s true that are plenty of chances that you will face scammers in trading. These scams make people think that the myth related to Forex might be true. People wonder is Forex a pyramid scheme?
But the myth that financial markets are a fraud and pyramid scheme is not true at all. The real scenario is that many brokers work within laws and regulations. But yes you should know how to catch a Forex scam. Let’s see how you can distinguish between a scam and a real broker.
Types Of Pyramid Scheme:
Usually, people face two types of pyramid schemes. One is the classic pyramid; it is designed in such a way that each user finances the income of the prior user. Profit is given from the deposit that is done recently. When new deposits are stopped this pyramid is collapsed. Thus people face many troubles and regret investing in such schemes.
The other type of pyramid scheme is fraudulent projects. In these projects nothing is paid to anyone, the organizers just keep delaying the profit by making various excuses. Usually, they target new traders who have less experience and knowledge to identify a scam.
How To Identify A Pyramid Scheme?
The Forex pyramid scheme you will face are designed by cyber criminals very smartly but if you investigate a little before making any investment you can save yourself from them. There are a few signs that help us in the identification of a scam.
One big red alert is the promise of a very high profit. Clients are attracted by the name of high profit and this greed helps criminals to trap innocent people. If any company is offering you unreasonable profits, then look deeply into this matter as it might be a forex scam.
If the system of the company is not transparent then it might be a Forex scam. If a company is offering you to invest money and then have a profit after some time but they are not providing you any details about their mechanism, then be careful it may be a Forex pyramid.
Scammers will target people by offering simple ways of earning. They will offer the inexperienced investors by saying that you only have to invest and we will take of everything afterward that. People love this idea of making money without doing anything. But beware of such offers, this could be a scam. A forex pyramid will never reveal the identifications of its team. If you find any names on their websites, you will see that there will be no links or confirmations related to them.
Every financial institution works under the laws and regulations of the country in which it is working. A scan company will never be registered in the state. So always check for documentation that proves that the company that is making offers to you is registered. If you find out that the company does not have any proof of it then back off from making any investment with it.
A Forex pyramid is usually a multi-tiered affiliate program. The main purpose of scammers is to earn as much money as possible. To achieve this purpose, they usually design a multi-tiered program.
Protect Yourself From A Pyramid Scheme:
To save yourself from falling for any scam always check the documents of the company that has approached you. you should look for a certificate of state registration. The company should have a legal address and financial license.
When you think of investing with a company always check its customers’ reviews. Previous clients of that company will give you a clear picture about the working o that company. If you find no reviews about a company then don’t invest with it, there are high chances of scams. Look for reviews on an independent platform. For example, Traders Union is a good option to find unbiased reviews.
Look for transparency in the system. Be sure about the methods that the company is using to generate profits. The contact information of the company should be very clear. It should have a physical office, email address, and phone number. Don’t get satisfied by just looking at this contact information rather try it as well. Check all the internal documents of the company to understand everything related to it.
By taking care of these things you save yourself from a forex pyramid scheme.
Forex Is Legal And Safe:
Due to the fraudulent projects, people ask again and again is Forex a pyramid scheme. But the answer to this question is NO! Forex is completely safe and legal. There are genuine brokers of Forex that give access to genuine financial markets to clients. Yes, there are some risks related to Forex but it is not intentionally designed to deceive you rather it will help you in generating revenue. There are multiple trusted brokers of Forex that provide legitimate services.
What Is RoboForex?
RoboForex was created in 2009 and it has 12 thousand trading instruments. Countless tools are available to design trading strategies. It provides CopyFx service and free of charge VPS server. There are no fees related to deposit or withdrawal. There are many copycats of RoboForex in the market we have already discussed how you can avoid such scammers. Once you make the RoboForex login you will have multiple remarkable benefits at your fingers.
Why RoboForex Is Important?
RoboForex is used to open and close trades and other tasks related to trading. If you log in to the members’ area you will be able to understand the different functionalities of RoboForex. In the member area, you can manage trading accounts while enjoying contests and promotions. You can review traders’ ratings and connect with them to do copy trading. You can make an affiliate program and learn with professionals.