Tips for avoiding scam investments in forex companies

Deal or No Deal forex animation
Deal or No Deal forex animation

I deliberately wrote this article for prospective traders or ordinary people who do not understand the risks of forex trading.

In essence, you should not easily believe a business offer with the lure of unnatural results.

I do not intend to give a bad image to those who work as Introduction Brokers in forex, marketing or sales companies.

The marketing or sales team is good, you could say the team as an intermediary or third party. But not a few who commit fraud against their clients.

Here I only provide information based on facts so that ordinary people do not fall prey to the lure and sweet promises of investing in forex.

In recent years, more and more brokers have sprung up both high and low credibility. The competition also occurs between brokers.

The competition takes place, both foreign and local brokers. To attract potential investors or traders, both foreign and local brokers are competing to provide trading features and tools as well as various bonus bonuses to make it easier for prospective traders to transact.

However, in reality, selling features and discounts alone are not enough. Professional marketing and IB forex do not escape the demands of the target.

If they do not meet the target, they reduce profits. This triggers a decline in the professionalism of most elements of marketing.

There are still many outs there who have a wrong understanding of forex trading. Most of them assume that forex trading can make money instantly.

There are also those who have been 'victims' of marketing or investment scams.

Scam investment is a way to sell by providing fix income or fix profit made by marketing in a forex company and forex IB or third party to potential investors/traders.

They prove this method to be the most effective way to get clients, because of the lack of knowledge about prospective clients about forex.

For that reason, for all readers who want to try trading, read tips to avoid the trap of Marketing Scam by unprofessional elements.

To avoid fraud from the marketing team, the point is the many profits or cashback should not easily tempt you and also see whether it is the logical profit offered.

Below are the Marketing Scam techniques that often offered by unprofessional marketing elements:

  • Fix Profit Guarantee

Promoting yourself as a trading account manager or hedge fund manager, who can provide regular profit fix to prospective clients.

Fact: no trader can manage his trading account without losing, or hit by a stop loss. Surely someday there will 'unlucky'. Therefore, do not believe if there is marketing that says fix profit guarantee.

  • Limited Drawdown Guarantee

Drawdown is the percentage level of initial capital decline. Prospective clients who are open-minded and understand business risks will usually attract because of the risk limitation offered if the profit targets presented are appropriate.

Fact: there is no instant way to profit on forex. Loss is a sure thing, therefore the level of capital decline is unavoidable. In fact, it uses this point to trick the client. 

When the client experiences loss, the client will unconsciously feel sincere because he already knows the possibility of a drawdown at the beginning of the agreement.

  • Top Up or Fund Inject. 

After getting eaten by the Fix Profit promise, the client finally opens an account with a happy heart. When a floating loss occurs, they recommend the client to top up or inject funds to maintain the resilience of the funds.

Fact: Marketing will launch its main action is to score lots to get as much commission as possible without regard to the installation of stop-loss and margin levels. At first, it might have been a profit, but most ended up with endless floating. 

When equity approaches the threshold of call margin, usually marketing will contact the client with the ultimate technique, namely: Top Up, they advise clients to top up as a backup of funds. And they recommend it with a comfortable speaking style.

  • The Best Profitable Trading Tools. 

Trading tools are tools to facilitate traders in analyzing price movements, they deliberately make some to give an indication of the right moment for trading.

Fact: just the name tools, the same as carpentry tools, if we do not understand the function and workings of the tools we use, the results we want are not necessarily as expected. Our advice, before using trading tools, whatever they are, you should first learn the functions of trading tools. Make trading tools as a tool to support our manual analysis.

  • Profitable Forex Robot Expert Advisor

Selling Expert Advisors or trading robots with very high profitability. Often I see many spreading spam links on social media related to robots that promise profit many times over. Is that really the case?

Fact: according to personal experience, we have never found a trading robot that matches the original description. Although the funds do not erode until they run out, they always affected by the drawdown limit we set at the beginning.

The use of forex robots can provide optimal results if monitored/intervened on our own. It should not run automatically for 24 hours. Because robots have patented algorithms, they can't read fundamental issues as well as humans.

I created this article hoping to increase the reader's insight so as not to have a wrong understanding of forex.

Suggestions for readers not fooled. The most important tips not too easily tempted by the profits offered by third parties.

As for marketing or sales and IB advice, please make your profession a professional. Education and delivery of risk to prospective clients are very important. Make this business a business your clients can manage independently that.

Okay, that's all for this article, thank you.

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