The types of forex scams you need to know about can all be grouped under two broad heading: geographical locations and time-frame. GEOGRAPHICS. This refers to any type of forex strategy that attempts to take advantage of a forex trend by taking advantage of it by moving your forex trading strategy from one part of the world to another part of the world at a later time in order to execute a trades in that region. There are many types of geographies, and some are simply more profitable than others. A few of the more popular geographic types of forex scams include:
* EXECUTIVE CHEATS. These types of forex scams commonly involve an “expert” or a trading system blogger who has concocted some sort of forex trading system or forex robot that automatically trades and makes trades on your behalf. This makes the “expert” money while you have to pay extra money to the traders who actually do the trading. This can be done by employing forex robots or forex trading scams.
* SIMULATION CHEATS. These types of forex scams are often known as “forex simulators.” These forex scams involve a kind of forex trading scam that goes like this: the forex expert provides some sort of instructional forex course, and then hands you a USB key with the proprietary software that you need to successfully trade with the system. Of course, the software needs to be “downloaded” from the “expert’s” website, and then you need to use the software to trade on real accounts.
* MT4 Integration. Here’s another one of the more common forex trading scams. This usually involves some type of illegal forex broker or company. You see, in order to successfully trade on the forex market, you need to actually be able to monitor the trades that you’re making. The problem is that many brokers and companies out there try to make it so that you need to have some type of special identification device (such as a smartphone) in order to monitor your trades. Of course, this is all for security purposes – to prevent people from monitoring your trades, which would allow them to take control of your account.
* DEPTH TRADER. This is another common form of fraudulent operations. Usually, what happens here is that some type of fraudulent activity will take place on the platform itself. For instance, someone may start by opening up a huge number of accounts. When those accounts become inactive or start seeing withdrawal requests on their credit cards, this is a sign that the broker has something to hide.
* Demo Account Trades. This is a big one. When there are forex trading scams going around, it’s usually because someone is trying to use a practice account in order to “get some experience”. Unfortunately, most people doing this will end up getting banned for using the unsecured practice account. These types of operations are very common on demo accounts, as most brokers and banks will not provide regulated trading with this kind of account.
* Social Media Promotion. This is one of the newest types of forex trading scams out there. If you have a large following on social media, or if you think you do, you can convince investors that your investment is going to be a big hit. However, remember that most investment scams work through social media, and this is where they’re able to target the largest number of people.
* Forex Broker Fakes / Covertops. Sometimes brokers will engage in what’s called a covert ops. A covert op is when the forex trading scams funnel money from you into an account controlled by the original fraudulent party. This is often done via a wire transfer, or through a series of other transactions that appear innocent. If you know someone who has been scammed by this method, it’s important that you bring that person to the attention of their local law enforcement agency.