Forex trading has gained a lot of popularity in recent times. It has become one of the most preferred trading markets. If you are aware of how trading works, you would probably know that you have to be affiliated with a platform to trade. Some brokers are offering their services, but it has been observed that the number of forex scam brokers is increasing day by day as well. To help you stay away from these scams, here is a list of forex broker types that are scams, and you should think before signing up with them.
Fly-By-Night brokers
In the market of forex trading, these types of brokers are known to be scammers. They have scammed many traders due to a lack of information about these scammers. But you should be cautious about it. These brokers have a web platform that lands you directly to the page where you can invest your money. Seems like something is wrong already, right? Yes, it is a scam; no legitimate broker will direct you to such a page where you have to invest your money. In the future, you should observe the brokers’ platform very carefully and try to look out for any loose points. Once you have invested your money with these brokers, either they will tell you that they went bankrupt, which is a lie, or either they will disappear just like a fly-by.
Forex Bucket Shop
Unlike previous brokers, these brokers are very well prepared, and they are really hard to distinguish. Let me tell you why. They design a full-fledged trading platform that meets the features offered by legitimate forex brokers. But the only difference is that these are not working in the forex market; instead, they are just stealing money from you, and you think you are losing your money in the market. Therefore, such brokers should be avoided because they have caused many traders to lose their money.
Pyramid Schemes
These types of scammers are really smart in what they are doing. You will be amazed at how clever they are, but their motives are not good at all. They will make a platform that will be the same as a normal broker. Inexperienced traders won’t distinguish between such scammers and legitimate platforms, but Claim-justice knows how to verify the legitimacy of brokers. They will take money from you, and you will think that you are investing your money in the market, but all of your money will be going into the pockets of scammers, which will never be returned easily. Such scammers are not only a part of the forex trading market but other markets as well. So traders from every market should be cautious about them.
Conclusion
As you have gone through some of the brokers, which are usually scams, I hope to help you distinguish between a legitimate broker and a scammer. If you want to be safe and secure from these scammers, you can take help from Claim-Justice because it offers its services to inexperienced traders who are facing any scam or losing their money in one.
