Forex scam generally have some qualities that are easy to find out which will be explained in the below lines. These criteria can also be taken as indicators for the scammers to find out the legitimate and illegitimate operators in an ideal way. Normally there are five forex scam signs which are stated as below:
1. Lower minimum deposit – low minimum deposit is one of the most important sign of a scam forex broker or unregulated forex broker. Placing trades for the customer is not an easy task for forex brokers because it is not possible to manage the data feeds cost, customer support, software services and price information on thousands with $1 accounts. A minimum low deposit of about $1000 or less is prevalent in forex scams among the forex brokers.
2. Sale of Low cost forex strategies – using trading strategies is very important in forex trading. Every forex trader wants to earn profit in trading and therefore they would not sell any profitable strategy for a smaller amount or below 100 dollars. Instead a forex trader could successfully make much profit using the strategy more then 100 and 1000 times.
3. Guaranteed performance – in financial market you will not find any guarantee in trading. Therefore providing 100 percent returns will be of no use for any software provider, forex broker and signal or strategy service. But in order to show the care of customer success service provider guarantees some service to its customer.
4. Unregulated – the government regulated the forex brokers and therefore there is no need to place the money in an unregulated firm. And this is acceptable to both the managers and brokers of high-end forex account. And for any genuine business the company should have the quality and ability to provide 100 percent legitimate service to their customers. And therefore those firms with no regulatory rules must be avoided for investment, service etc.
5. Limited contact options – contact with forex scammers is limited which is totally different from any legitimate service providers. Customer service provided by legitimate firm and scammers are different. Customers also need support that will help them whenever they need. And in order to make the buyers comfortable there are some basic requirements such as a mailing address, a landline number but most preferably 1-800 number. But it is still not an expensive thing to have a small office and 800 numbers.