Online Trading Scams
Online trading is a lucrative opportunity due to which it has drawn the attention of millions of people all over the globe. While these financial markets provide legitimate trading opportunities to people, it has also attracted the attention of cybercriminals because it is a great chance for them to scam people.
Therefore, the scourge of the online trading scam has surged in the last few years and there are numerous stories about people being scammed out of their money through one scam or another. Not only does it result in a financial loss, these scams can also demotivate people and cause them a lot of stress that you would want to avoid.
Does this mean that you should not think about online trading? It can be done, but why miss out on the good opportunities because of the risk of scams? There are some really solid money-making trading opportunities that can give you the kind of returns you want. If you don’t want to miss out on them, then you need to learn how to avoid online trading scams. Is it possible? Indeed, there are a few things that can be done to avoid these scams altogether. Check out the tips below:
- Ask questions
When you are looking for online trading opportunities, don’t be afraid to ask questions. Fraudsters and scammers are counting on you to not ask questions or investigate before you invest. Do your own due diligence and don’t just take them at their own word. You should ask them questions and also do your own independent research into their answers to see if they are what they claim to be.
- Research before you invest
How did you come by the online trading opportunity? Message board postings, social media ads, unsolicited emails and company news releases shouldn’t be the sole basis of your investment decisions. Before you consider a trading opportunity, you should look at exactly what it involves. How much investment would be required? What returns are they going to give? What terms and conditions are involved? You need to know this essential information for avoiding online trading scams.
- Don’t opt for unsolicited offers
You should be extra careful if you have received an unsolicited pitch about a trading opportunity. You didn’t ask for it and yet it has shown up and sounds really good. If it was truly that good, it wouldn’t have to advertise itself like that; the results would speak for themselves. Legitimate trading opportunities don’t just show up in your inboxes or messages.
- Don’t let yourself be swayed
There are times when even the most professional investors and traders end up falling for online trading scams. Why is this so? This is because they are presented with an opportunity that is very difficult to resist because it promises you everything. However, you should remember that if something sounds too good to be true, there is a good chance it mostly is. You will end up losing your money if you let yourself be swayed by such trading schemes.
Legitimate trading opportunities will never promise you abnormal returns, unless there is a very good reason behind it. If a trading opportunity does promise you high returns, make sure it has the data and the evidence to back them up. How will it generate the returns? There should be a proper strategy in place or else it is just another one of the countless online trading scams in the market.
- Never believe in guaranteed returns
Every time you see the words ‘guaranteed returns’ associated with a trading opportunity, you should run in the opposite direction. Online trading carries a degree of risk and this will be reflected in the return that you can expect to receive. If there is no risk, then you will probably receive a low return whereas high returns usually come with high risks. However, it is simply not possible for anyone to be able to guarantee returns, no matter what trading or investment opportunity it may be. The trading world, in particular, is an unpredictable one and you don’t know how things will go.
- Avoid the trend
You should be wary of any opportunities that claim that everyone is investing in them. A lot of online trading scams claim to have fake celebrity endorsements or that they have attracted hundreds of investors. The purpose is to create FOMO i.e. fear of missing out and get people to part with their money. But, you should bear in mind that if a trading opportunity has to advertise by sharing how many people have used it, then it is a red flag in itself.
- Don’t fall for the ‘halo’ effect
What is the ‘halo’ effect? This is when a trading opportunity comes off as credible. You do all the usual research and it appears to be quite credible, but it seems too perfect. This is also a red flag because in today’s technologically advanced world, it is possible for anyone to fake credibility. What you need to do is take a look at actual qualifications. Legitimate trading platforms are usually properly licensed and registered and will have data to back this up. If any of this is missing, you need to avoid them completely.
- Make sure they are not a clone
As mentioned above, technology has become very advanced and sophisticated these days, which has made it easier for scammers to make clones of genuine and professional trading platforms. Most people don’t realize that they are signing up with a fake website that’s remarkably similar to the original one and end up falling into the trap. Always go over the URL and look for the lock icon to ensure there is no discrepancy before you register.
With the help of these tips, you can minimize the risk of being trapped by online trading scams. In case you are unable to avoid being scammed, seek the help of services like Money-Back.com that specialize in assisting those who have been scammed in recovering their investment.