The world currency market is a free market, and with just a click of the mouse, you can put into a huge market to trade. However, we also know that fraud often happens.

Scammers often take advantage of a beginner's blind spot in trading, using promises such as "high profits, margin returns, zero spreads" to lure people in, and then they will use your optimism and fear to get you deeper and deeper. Over the years, we have been passively taught many things by liars, and now it is widely publicized!

How do we spot scams?

According to the FX110 network rights protection Center in the first quarter survey report shows that several major exposure types, the loss caused by the single documentary is the largest proportion of the exposure in the whole quarter. Moreover, the rights protection commissioner also said that most of the platforms involved in these Revelations are black platforms.

Calling a single documentary leads to losses, which is actually the use of signals to defraud. The so-called "call teacher", the "analyst", sends signals to investors, such as direction, entry price, stop loss and target level. Among them, some "call single teachers" and "analysts" provide you with trading signals, but only if you deposit money on a specific platform. This way they may get a rebate from the platform, so they have an incentive to send you any deal, win or lose. Of course, there are those who will want to keep you profitable so they can continue to receive commissions from the platform.

But in general, with these so-called "calling single teachers" and "analysts" making orders, the vast majority of investors are making losses, with losses ranging from tens of thousands to millions. There may be some profit in the early stage, but once you invest more money, there is likely to be no return. Such cases can be seen in the exposure section of the Rights Protection Center.

Other issues such as cash withdrawals and trading on behalf of customers, which are also major problems in quarterly reports, are also common in scams. Learn more about this so you can avoid falling victim to this type of currency exchange fraud and fund fraud.

So how do you avoid fraud?

The best way to avoid investment scams is to use multi-party research platforms and invest prudently. Specific methods are:

The first is to stay away from opportunities that seem too good. Don't believe empty promises of "small investments," "big returns," and "zero risk." Remember that there is no 100% guarantee. If they did, they couldn't possibly share it with you. Trading CFDS requires a significant investment of time, education, patience and wisdom to become profitable. There is no easy money here, only extra income can be earned by spending enough time learning how to trade properly.

Another very simple way is to look at the regulation of the platform. This is especially important for beginners in the currency industry to check whether the platform has regulatory compliance before investing. If your English is fairly good, you can contact the regulator declared by the platform to inquire, the "currency supervision check" column to inquire, has entered 11600+ platform information, which can maximize for you to avoid the black platform. So, when you meet a dealer or agent, the first step you need to do is to inquire about their corporate supervision and background.

3. Look for customer reviews on reputable websites

Look for customer reviews on reputable websites, such as FX110, to see if there have been complaints or exposure about withdrawals, and proper background checks can minimize investment risk. If the platform information is not found, or they are fake, you should stay away.

4. Take further measures to protect yourself

This is something that many investors don't pay much attention to, but it is crucial. We need to verify all the information we learn from the platform or agent, and do not rely on phone conversations or oral statements, or even web screenshots. Do a little more to avoid a big loss in the future. In addition, when opening an account, please be sure to read all the details carefully, especially the conditions and regulations on withdrawal, which is directly related to the smooth withdrawal of funds in the future.

In addition, the use of demo accounts is another indicator of how good the platform is. If you haven't even done a mock trade, the platform agent or salesman asks you to make a real offer, which is a strong sign of a scammer.

In today's era of network technology, fraudsters are always advancing with The Times, tricks constantly refurbished, in the face of this complex society, as investors, we must know how to prevent fraud, I hope this article can help you!

Source: FX110