Online trading scams are unfortunately the order of the day. Therefore, as we are experts in the field and for years more and more readers have been following us with interest, we decided to write a small guide containing ways to avoid trading scams. First of all, to be able to fight an enemy you need to know him: what are online trading scams?
First of all, some traders who call from call centers, taking advantage of the fact that you do not know the topic. They say that it is not necessary to do anything, that it is all simple, that a few minutes a day are enough. It doesn’t take anything except one thing: money. Of course. Even if there was a guarantee of profit, it would be the best. The great thing is that sometimes someone even proposes it.
The second type is given by unregulated brokers who propose to operate on their platforms even to clients who could not do so. For example, a broker who wants to operate in Italy should have various certifications including the CySEC license or another valid in Europe. In addition, the registration in the Consob register. In addition to these, there is also compliance with MiFID 2 and ESMA regulations.
Too many things to check? That’s why we’re here. Check out our selection of secure and legal brokers.
The third is the one that includes websites that pretend to be brokers but are in fact anything but. For example, sites that sell signal services, etc., are not the same.
The fourth, the most annoying of all, is those sites that focus on the enthusiasm of possible high earnings through extremely optimistic messages, in which trading is passed off as an activity that can be done by boat for a few minutes a day, offering thousands of Euros of profit every day.
Probably, reading all these types of scams, you’re wondering “who’s falling for it?”. Apparently, a lot of people are falling for it. And that’s not good. It’s not good for anyone, least of all us, who do our job as informers and bloggers according to the rules, offering you more and more guides to start trading with a necessary level of information.
Avoid Scams In Trading. Method 1: Choose Known Brokers
The first way to avoid scams in trading is to choose a known broker who is known to be reliable.
Be aware that you will always find comments against any broker. Even the clearest of brokers may be confronted with such comments:
- You never earn any money (there is something wrong with the strategy or trading training of those who say so).
- Can’t withdraw (probably writes on behalf of the competition or is someone who has temporary technical problems).
Now, taking into account that a broker with a recognized license (e.g. CySEC), registered with Consob and which presents on its homepage all the licenses with which it operates in the various territories, the comments can have as much fun as they want.
The fact is that a legal broker, which respects all laws, is not a so-called broker scam.
So, to summarize: rely on the most recognized brands. They do not need to call you on the phone unless you have already signed up and they are calling you to help you get started. So:
- You’ve signed up and they’re calling you from the same broker that you signed up for: that’s fine. You can still decide whether or not to continue with your membership.
- You didn’t sign up and they’re calling you: that’s not good. You are free to do as you wish, but it will not have started as your initiative. If you don’t care about trading or you don’t have time to get it right, forget it!
Reject Trading Scams. Method 2: Get Information On Reliable Sites
The second method is to rely on someone reliable to guide you in your choice, directly or indirectly.
- The direct way is to ask for it personally.
- The indirect way is to take advantage of the informative material that can be formed by articles, video tutorials, reviews written by websites that you consider of quality or that you trust.
To evaluate a website, you need to evaluate how much of its space is devoted to training, evaluation, updating, etc.. In addition, there should always be an open communication channel.
For example, in addition to numerous guides on individual brokers, trading, CFDs, Forex and any category of tradable assets on our site, we have also recently launched a Youtube channel with practical guides on which you can comment and receive our support/feedback on any topic touched on.
Our goal is to offer you a complete training for each theme and for each platform, in order to help you in understanding the operational dynamics, which require time anyway.
The Trading Scam? Method 3: Feet On The Ground
Someone promises you quick results? Stay away from it. Anyone promise you safe profits? Stay away even more.
It is true that trading brings results in the short and very short term, but “results” should be understood as both positive and negative. Those who do not inform and do not train will probably get negative results immediately.
There are no magic methods, tricks to win and so on. Online trading, although it involves a “quick game”, brings results that should be evaluated at least in the medium term.
For example, today I can earn today, tomorrow lose, the day after tomorrow lose and then return to earn in a few days. A balance sheet should be made periodically: week after week, month after month.
Once you have reached the limit of your planned budget, you have to sum it up: are you earning? Are you losing?
If you are losing, you can proceed in three ways:
- Change your strategy.
- Strengthen the study/depth study.
- Forget it.