Every trader in the Forex Market trades with the objective to earn profits. While profits are definitely earned by experienced traders who trade with a realistic approach and in-depth market knowledge, the risks involved are also very high. The risk is not only limited to losing money in Forex trading but also the existence of various Forex scams that can devastate you.

The fraudulent activities exist in different forms in the Forex market. There are several fake companies existing in this trade with fake credentials, false testimonials and hidden terms and conditions, who promise to offer huge profits in a short time period. There are companies who conduct phony marketing, tempting investors to go for experienced Forex traders who can manage their funds and generate profits. Inexperienced traders with the intent of gaining huge profits in short term often fall for it, losing their money. There are Forex scammers who are smart enough to convince the customers to buy automated software systems to help them earn ‘huge profits’. And, several Forex brokers exist in this market that are not fair in their practices, and can make their customers lose their funds. Other types of Forex scams are managed accounts, copy trading, and signaling services.

These scams are so prevalent that you should be aware of them and also know how to keep yourself protected so that you do not incur losses or blow up your funds completely.

Here are 9 ways to avoid Forex scams; which will help you to be aware of fraudulent activity in the Forex market and prevent you from losing money.

1. Know how Forex trading works

Before you get into Forex trading, you must be aware of how trading in Forex markets functions. Successful Forex trading happens gradually and if you want to earn profits in this business, you need to gain experience and knowledge, and practice trading.  Remember, there are no shortcuts in Forex trading. If any company or broker offers you easy ways to earn profits, it is a possible scam and you must do all possible research to check their credentials and authenticity.