The foreign exchange market is considered to be the largest and most liquid financial market in the world. In the foreign exchange market, investors buy and sell foreign exchange for the purpose of earning the difference caused by exchange rate changes. On the one hand, as an investment, foreign exchange trading itself is full of risks. Foreign exchange investment advertisements will claim that the foreign exchange market has a low threshold, but foreign exchange trading is dominated by large international banks with numerous resources, equipped with cutting-edge technology and large trading accounts. It is difficult for individual investors to match the professional training, and there may be no one to warn investors about the huge risks of forex trading.

In addition, on the other hand, there are some illegal or fraudulent forex trading scams. Because forex trading is often conducted online through servers located in other countries, unregulated companies may market their services beyond what is permitted by law. Investors' money may not be invested as claimed and may need to be transferred to offshore accounts before trading, making it difficult to recover. In any of these cases, investors will lose some or all of their money.

The risk of trading losses that may be caused by foreign exchange investment itself is unavoidable, but for all kinds of foreign exchange scam investors can be avoided by improving their awareness of prevention! So how can we effectively avoid being cheated?

1. Be wary of promising high returns with low risk

In general, return and risk are proportional, higher risk investments tend to provide higher potential returns, while lower risk investments provide lower returns. The risk of loss increases with the potential return, and investments considered low-risk typically have returns similar to deposit rates. Therefore, when there is "small risk to make a lot of money", "capital preservation", "an opportunity to achieve wealth freedom", "annualized return **+" and so on, it needs to be vigilant. Previously, the central bank has repeatedly reminded investors to achieve self-education and enhance their immunity in the process of preventing and resolving financial risks. Through a variety of ways to let the people realize that high yield means high risk, yield more than 6% will be questioned, more than 8% is dangerous. Above 10%, be prepared to lose your entire principal.

2. It stresses you out

In general, fraudsters often use high-pressure sales tactics - because they want to get as much money out of investors as quickly as possible. If you are asked to make a decision immediately, or receive the words "limited time offer" and "the event is about to end," you may have encountered a scammer.

3. Teachers and experts

If there is a so-called teacher, expert recommendation, steady profit does not lose, there are exclusive "secret" indicators, etc., known as professional trading, funds by investment experts, big V trading, professionals to take care of, timely stop losses, etc. Please be vigilant. It is possible that fraudsters are taking advantage of investors' unfamiliarity with foreign exchange knowledge to promote specious so-called foreign exchange financial management techniques. Thus realizing the ultimate fraud.

4. Take your time

The best way to avoid forex scams is to take it slow. Don't make a hasty decision. Weigh the pros and cons first. Talk to a Forex broker or agent and ask questions.

Is it a registered company?

Is there a corresponding regulatory license?

Which regulatory bodies are they regulated by and how can they be verified?

Where is the actual address? Can I visit the company?

Are the employees real names?

5, with the help of third-party identification platform

Identify and look for customer reviews on reputable websites, and if you can't find the broker or fake platform, stay away from it. In addition, investors can browse reviews on the Web or WikiFX, a professional search tool, to see if the Forex broker is as trustworthy as it claims to be.