ENDS SOON! Get 25% off our ACCREDITED Training programme ! Use promo-code: testimonial321 CLICK HERE

×
×

SITE NAVIGATION

QUICK LINKS

Learn to Invest

How To Spot Forex Trading Scams & Bonuses

By Louis H-P on May 26, 2022

Reading Time: 3 minutes

As the popularity of Forex trading has grown, so has the number of brokers in the industry. One of the most important factors in choosing a brokerage business are the bonuses it provides. FX brokers aim to come up with new and creative ideas and promos as frequently as possible. But not every bonus is trustworthy; some are either impossible to meet or are Forex trading scams. The primary purpose of some of them is to cheat their customers of their money.

Factors worth considering

There is nothing more appealing to Forex traders than receiving a bonus or promotion. Customers will be given extra money to trade with in the future as a result of this offer. There are many types of Forex bonuses available, such as deposit bonuses, no deposit bonuses, competitions, and brief promotions, to name just a few. Before accepting any inducement, you should think about several factors.

Before enrolling on a broker’s website and examining their bonuses, do some research on their authority and license. Genuine brokers will always offer their customers amazing deals, while fraudulent brokers will either lack a license or possess no practical knowledge of the foreign exchange industry.

Because of their inexperience, new traders often make mistakes and overlook important details that might have a significant impact on their trading results. As a result, changing the bonus money to cash and then withdrawing it later becomes a complicated process.

How to spot Forex trading scams…

Learn to spot a Forex trading scam

Moreover, a minimum deposit for opening an account with a financial service provider is always required by scam brokers in order to receive bonuses. If a broker is doubtful, as written on this website, the deposit requirements may be overly high. Refuse the bonus and leave if you think the amount is out of the ordinary.

Brokers that are not regulated do not have to report to a regulatory agency. As a result, if they defraud you in any manner, whether it’s a bug in their system, a malfunction, or if you try to withdraw your money and they don’t process it, you’re out of luck. There isn’t much you can do outside writing a negative review online since these brokers aren’t required to respond to anybody.

Pros and cons of FX trading scams and bonuses

It is one of the key benefits of Forex bonuses that your capital is increased. You are more inclined to trade Forex if you get a free bonus. Motivated by increased funds, driven by the need to meet bonus requirements, and driven by a desire to engage in trading, there are many reasons why you could consider doing so.

The more money you have in your account, the more likely you are to try your hand at trading. Keep in mind that, even though deposit bonuses are entirely free, there are certain restrictions associated with them.

Choosing the finest Forex broker is easy when you have a bonus to work with. Everyone in the brokerage sector claims to have the most lucrative incentive plans in the industry. Because of your budgetary constraints, you may only be able to work with one or two at a time. When looking for a broker, seek one that has a good incentive program and also performs well in the markets.

Even though Forex bonuses are meant to entice new investors, the limitations tied to them, together with the reputation of the broker, ultimately decide which investors choose to spend their funds. For others, investing in Forex is out of reach due to the high minimum investment thresholds.

Gain even by starting small

Deposits as little as $100 are eligible for incentives from most brokers. So even if you just have $200, you can still play the game to the fullest extent. Your deposit will rise from $200 to $240 if you find a broker that matches your deposit by 20%. Increasing the size of your positions makes trading more convenient. Increase your initial investment and shift your trading position if you want to make even more money.

As we already stated, bonuses have terms and restrictions. The majority of brokers will not allow you to withdraw your gains unless you reach the trading volume requirements. In other words, if you don’t reach the lower ceiling, you won’t be able to collect your money.

The problem is that most brokers limit your subsequent deposits to the parameters of your initial bonus. This is one of the disadvantages of Forex bonuses. However, you can solve this problem with a detailed reading of the terms and conditions of the FX bonus, to avoid all the uncertainty.

Conclusion

To conclude, when it comes to Forex trading scams there are many things that are worth considering. One of the main ones is to avoid Forex scammers that try to attract new customers with the use of fake bonuses. So, remember to not accept any promotion or offer until you read the terms and conditions thoroughly.

The following two tabs change content below.

Louis H-P

Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.

Latest posts by Louis H-P (see all)

FEATURED ON

About author

Louis H-P

Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.

Lazydev Book cd