New Forex Scam Tactics Just Discovered

Scam Forex Brokers

Non Regulated Brokers are all in the list of scam brokers after all they do not answer to any authority and if you have a dispute with them there is no legal action you can take against them, they make sure you agree to indemnify them of anything before you sign up for an account, that way you cannot even take them to court.

If you open an account with a non regulated scam broker and you send them money, then you make a nice profit, you want to make a withdraw of the profit then they delete all your profit, all your trading history, and sends you back your cash, or worse ignores your emails and does not send you back your money, and you realize you have been trading a demo all the while thinking that you had a real account, this is what some brokers who are scam do, a trader opens an account but instead of getting a real one the trader is put on a demo without knowing. This is why it is best to trade with only companies that are regulated.

(Scam of the century — A trader was once told after making thousands and thousands of profit after opening a real account and even sending account opening forms and wiring funds to his account, that he was still trading the demo, therefore he could not withdraw profit because the profit was demo balance.)

A Regulation body audits and makes sure that regulated financial companies adhere to strict guidelines, or otherwise lose their license and credibility. A broker will only rely on its credibility and traders will look for regulation as the first qualification for choosing a financial institution to trade with, most companies know this, that is why most of them are regulated and adhere to strict code of conduct when handling clients deposits so that they keep their license, trading with a regulated is a guarantee that your money is safe because all their transactions are independently audited by an external auditor and the audit reports scrutinized by their Financial Regulatory Authority that they are registered with. And you can always make a complaint with the relevant regulatory authority in case of anything, and the regulation authority will investigate your claims.

Regulated currency brokers have to follow strict financial regulation guidelines, if they don’t they will lose their license, It is always best to trade with regulated companies as they have a lot of transparency when it comes to dealing with clients and their money. Good ones also offer segregated Forex accounts, a segregated account is the type of account where client money will not in any way mix with their operating capital (will not commingle with the company’s capital). The opposite of a segregated is Omnibus Account where your money and the brokers money is kept in one account and mixed which is not the best option.

Automated Trading Robots Scam

Most automated robots out there are scam because most are not programmed by traders and they rarely turn a profit for any trader, the only person making a profit from these robots is the person selling these automated robots, otherwise why would these guys sell these robots for thousands of dollars, tell you what, most of these guys do not even know what Forex is, what they know is how to sell things, You will be surprised to learn the number of emails that I receive every month asking me to promote these scam robots on this best learn website in exchange that for every sale I would get a commission.

The other thing to know is that once scam brokers know that a trader is using a robot they can spike the price a few times and confuse your trading robot, talk about how easy it will be to trick your most profitable robot.

The Auto Dealer Scam — Forex Tricks

Another method to beat your automated trading robot is the broker using another robot/software known as a forex auto-dealer. The auto dealer is a software plugin that is put for profitable traders, once an auto-dealer is implemented for you you cannot simply trade the market and will get re-quoted continuously, you will get off quoted, (whatever this is and what it means only the autodealer knows) it is like an undercover scam tactic that you are not even aware of, Likewise if you are using a robot you will be put on auto dealer and that is the end of you robot, your robot will hang from the many re-quotes dealt to it by the auto dealer. An auto-dealer will even freeze your currency platform for even hours locking your automated robot out of trade execution. Want to know how your broker will know you are using an automated EA, first of all you will have selected the option for allowing Expert Advisors to execute trades. second EA open trades using programming modules known as scripts .

Auto-dealer plugin is a covert tactic that is not known by many traders, but once you start getting re-quotes, off quotes all the time it is time to suspect your broker has implemented an auto-dealer for you especially if you are trading profitably, one or two requotes is okay but if all the time you get requote after requote maybe it is time to change your broker. If your platform freezes for hours on end and you cannot trade or login even after you restart your software platform 20 times, then definitely know you are dealing against the virtual dealer/auto dealer scam tactic. The next time you will log into your account is after your scam broker has got all your profits usually after 4 to 5 hours.

Some companies have even been fined for using tricks such as manipulating the spreads, they are always adding extra spread by using such types of software and plugins. Some of these tricks might not be outright scams but these tricks will definitely rig the game against you use these tricks to their advantage to get your money.

Ever heard of the terms:

These are term used by market maker currency brokers, who take the opposite side of your trade, not that it is illegal, there is a license for this. perfectly legal (ethical? Maybe not) you will not have anyone to complain to, the only requirement is that they are required to disclose this to you. in their terms of agreement you sign before you open an account with them. But, they will not tell you in black and white that we take the opposite side of your trade, instead they will use terms like counter party. principal , conflict of interest now you know what they are telling you. And when these brokers are taking the opposite side of your trade, Do you expect they will play fair?

So next time, before opening an account take an hour and read that agreement before accepting to the terms of this agreement.

Scam Signals

Want a reliable signal provider, you will have a hard time finding a reliable provider, most will not make any profits for you better you learn how to generate your own trading signals. Currency signals providers will provide signals and charge $200 dollars per month, these guys think there is a lot of money in Forex to be given away by traders, a better way to use the 200 dollars you got is to open a micro account and learn with that cash, you are more probably likely to make a profit from it than if you pay 200 dollars for some signals. Do not pay any cash to anyone, instead open an account with your money. Learn how to generate your own signals from this topic: Generating Currency Signals .