In this day and age, it is very important to be aware of the possible scams that can happen fairly easily if you do not have enough information on how to actually protect yourself against them. While the internet is an amazing source of information for both current traders and prospective ones, it does seem to be difficult to discern valid from bad info.
The internet is also a great platform for anyone who is willing to scam people in order to fulfill their goal. This is mostly due to the fact that the internet cannot be easily monitored and its the main characteristic is the lack of rules and regulations which we consider normal in our ‘’physical’’ world.
There are a few important pointers in this article that can help investors protect themselves from potential scams that lurk around the cyber corner.
- Look for errors and poor design
The fact of the matter is that these days anyone and everyone can make a website and attempt to sell something. Everything you need to design and launch a site is available online with very little investment or no investment at all, depending on which route a person takes.
Those whose goal is to scam people know very well that the average person is not going to pay much attention to how well build the website is and does it maybe reveal a scam product. ‘’Thanks’’ to this, the fact stands that there will always be people who will visit the scam site and those who will take the bait.
In order to recognize potential online trading scams, it is crucial that you are able to focus and isolate quality content, especially if you are focusing on CFDs or forex, from that which is made solely to attract in order to scam. Make sure you pay attention if the sites maybe have grammatical or typographical errors and especially random and poor graphic content. Also, if there are no terms and conditions – that is not the site you want to use for online trading.
These all could be signs that a site is not legitimate. Obviously, this is not a guarantee, but in most cases, legitimate websites will make sure that their content is very high in quality and won’t stand for such mistakes.
- Think for yourself
Most scam sites, especially trading sites, will make preposterous promises and lay out unrealistic reports of events that are usually false. They will spam you with newsletters and emails with promises of quick and easy money.
It is a fact that even people in high positions have stooped low enough to leave false reviews on their own companies products in order to potentially drive up theircompanies stocks. The most troublesome seem to be newsletters who proliferate false info in which they claim that some asset is now suddenly the latest trend and will ‘’surely’’ be going up. These types of scams are targeted towards those investors who are willing to disregard their own financial stability for a chance for a quick buck. The only issue is that the profit doesn’t come true.Also be careful with online automatic trading systems, some can generate good returns, while others are mostly scams.
The only and the best way to avoid these types of scams is to think for yourself. Regardless of what you read or what you think is legitimate information or a company, always do your own research and do a thorough job. Your money isn’t to be taken lightly.
- Check for complaints
Probably the easiest way to make sure a trading company or a broker is legitimate and not a scam is to simply contact the regulating bodies that are supposed to be governing the company and check the complaints against them.
It is very likely that even if a firm does have a complaint made against it, it does not automatically mean that it is scamming financial traders. Complaints happen for a multitude of reasons and sometimes they don’t always stand on firm legs.
Make sure you ask about the type of complaint and is it in the process of resolving. If the company has a good standing and the complaints made are an exception to the rule then it’s probably nothing to worry about. But if the complaints are high in numbers and are of serious nature, then there’s a fairly good chance that the company is involved in a fraudulent behavior and you should definitely stay away.