How to spot Forex Scams and avoid them?

Forex scams idoforex

Foreign Exchange Market (Forex) has been the world's largest market so far. So there's no wonder there are plenty of Forex trading scams happening. Although the authorities have taken steps to protect the Forex market from such scams by heightening its security, it seems that there are still out there. So there is a possibility that you might too be vulnerable to these Forex Scams.

 

 

Forex scams may come in different forms. Hence, there's no such way we can name that this or that is the only method that might come as a scam. Yet, there are some ways to sense and spot the scammers.

If you are a beginner it might have already been little difficult to identify due to your lack of Forex knowledge and experience. But as you go further with this article you will find it's not that difficult. Mind you, you will have to be cautious and learn Forex gradually.

1. If a broker says that it directs you to gain huge amounts of profits without risks, then you have to be very cautious. Why? Because, Number one, Forex Trading itself is full of risks. Number two, There's no way you can trade without risks. But having a proper knowledge of it and practice you can minimize them. And number three, Forex is about making predictions. So no one can assure or promise of a future market change.

2. The next way you can sense of a Forex scammer is, that the broker or the account managers or the partners promise you a hundreds of pips in a day with no risk. The rationale behind why this should be sensed as a scammer is that if they are capable of giving that kind of an offer to you, why others can't and why they are trying to sell their own system to you? makes sense right?

3. The other way to sense a Forex scammer is that they do not reveal a license or the regulatory authority on their website. If a Forex manager or a broker has this license, why are they not displaying it. Because, if they are doing a business, and if their objective is to gain profits by delivering a service to their customers, showcasing the license inevitably attracts customers to them by building trust. Why have they given up such a valuable strategy in their business? That says something isn't it?

4. Most scammers do not reveal much about their organization their location and other background details. Having said that, we cannot say that all the organizations that have mentioned their location is not a scammer. Because it's just about updating their website. So take a careful notice on their country of origin or the headquarter's location falls under highly regulated Forex countries and do bit of research whether they are visually available in somewhere else; in videos, their advertising, marketing campaigns, webinars, tutorials etc.

Spamming your emails and messages with unprofessional tone of speech containing so much of exaggeration and unreal sounding facts or promotions could be another way of a spammer's reaching you.

Apart from this, if an email or an SMS asks your personal details without the name of the sender's name and there seems to be other way of contacting them, it could probably be a scam (Usually the licensed and professional companies have an established support center communicated on their platform or site and they are always professional in communicating)

Learn Learn Learn

What makes you rich first is, learning Forex. Because then you know what exactly Forex is and how it behaves and how to apply Forex strategies in order to expect profits. If you are a beginner, we suggest you to start from the very beginning. Forex Basics. 

Carefully Study the Forex Broker/Provider

If you come across a Forex broker or any other provider, check the following

  • where are they based?
  • how many branches across the world are being operated?
  • Is it regulated by an authority?
  • Does it have a valid license from a regulated body?

The answers to these will keep you in the safe side.

Get the Forex Broker confirmed

Websites can say that they have Forex license. Because usually the people do not cross check them. So if you have doubts of whether a broker/a manager has a license or feel like you are being scammed, just get it confirmed by the regulatory body of that country. Popular Forex regulatory bodies are as follows.

  • USA - CFTC (Commodities and Futures Trading Commissions)
  • United Kingdom - FCA (Financial Conduct Authority)
  • Australia - ASIC (Australia Securities and Investments Authority)
  • Cyprus - CySec (Cyprus Securities and Exchange Commision)
  • South Africa - FSB (Financial Services Board)
  • India - SEBI (Securities and Exchange Board of India)
  • New Zealand - FSP NZ (New Zealand Financial Service Provider)

Forex Trading App for South Africa

Forex Trading app South Africa

"Yes, it is not easy to choose the best Forex Trading app out of many. That's why we decided to list down the best among the best in South Africa"

If there's anyone in South Africa or in any other country who has been wondering which Forex Trading app to use, here are them. The best and the most suitable trading apps that suits your requirements.

Forex Trading app - the trading game

This is a free Forex Trading app that helps any trader to learn and practice trading despite their level of expertise. The app offers many features like entertaining lessons, pro tips, knowledge tests and practice environments in addition to real trading.

etoro logo

eToro is a Social Trading app which basically helps you to copy pro trader's trading decisions and apply in your trading. eToro was the first in the world to introduce such a useful trading app. Its features include copy trading facility, leverage, stop-loss order, demo trading (practice trading in a virtual platform)

Minimum Deposit - $200

Trading Instruments

  • Forex
  • CFD
  • Commodities
  • Cryptocurrency
  • ETFs
  • Stocks

Plus 500

plus 500 logo -Forex trading app

Plus 500 app is considered to be one of the best trading apps used in South Africa as well as the other countries. This is also rated as one of the best trading platforms to trade with. This will be a good pick if you are especially seeking ways to trade CFD as well as Forex.

Minimum Deposit - ZAR 1500

Trading Instruments

  • Commodities
  • Cryptocurrencies
  • Forex
  • ETFs
  • Indices
  • Stocks
fxtm logo- south africa

FXTM Trader or Forex Time Trader is just another broker that's popular among the most South Africans. What makes this broker more easy to trade with is that FXTM offers the opportunity to start trading with a minimum amount of $5 under their account known as "The Cent Account"

Minimum Deposit - $10

Trading Instruments

 

  • Commodities
  • Cryptocurrencies
  • Forex
  • Indices
  • Metals
  • Shares
  • Stocks

CM trading

CM Trading Logo - best forex trading apps South Africa

CM Trading is the most involved broker in South Africa and is regulated FSCA. It is originally in Johannesburg and operates in Seychelles as well.  This broker is appreciated among its users for its innovative movement with its offerings. Their management define it "We are always looking to give you that bit extra"

One of the innovative moves is that their Guardian Angel feature. it informs you of the major market changes that happens in the market immediately. To name another, CopyKat service. That enables traders to connect with people who are under the same broker.

Minimum Deposit - $250

Trading Instruments

  • Commodities
  • Cryptocurrencies
  • Forex
  • Indices

Best Social Trading Platforms 2019

world's best social trading platforms 2019

Best Social Trading Platforms 2019

From the lesson Social Trading, hope you get a good knowledge of how Social Trading Works. Now it's time to start trading Forex using the Social Trading knowledge you have. As an individual trader, your first step is to select a suitable Social Trading Platform.

If you look around the world, there are several Social Trading platforms. They are famous among online traders due to various features.  Without proper guidance, it is difficult to select the best platform. This article brings up a complete review of the world’s best Social Trading Platforms.

Among all Social Trading Platforms, here you can compare ten best platforms about their features and offerings.

While reading this article you might see advanced information about Social Trading Platforms. With a good knowledge on social trading, you would have understood the content far better. If you think you may face difficulties in understanding platforms article, refer INTRODUCTION TO SOCIAL TRADING

1.eToro

etoro logo

"eToro", the world's most famous Social Trading Network founded by two brothers Yoni Assia and Ronen Assia. They were in cooperation with David Ring. In early 2006 it was first named as “RetailFX”. In 2010, the name eToro was published with the eToro’s most famous function “Copy Trading”

Minimum Investment -

  • $200
  • For residents of Australia and USA, minimum first time deposit $50
  • For residents of China, Hong Kong, Taiwan and Macau, minimum first-time deposit $500

Leverage -

  • 1:400

Financial Instruments you can trade -

  • Stocks
  •  FX
  • ETFs
  • Bonds
  • Funds
  • Commodities
  • Cryptocurrency

Trading Platforms -

  • eToro Webtrader
  • eToro OpenBook

In 2015 both WebTrader and OpenBook  merged to create a new platform

  • Mobile Trader

Contact Information -

+61 2 8016 9335

Open an eToro account for free

Open an eToro Real Account for Free

Open an eToro Demo Account for free

2.Zulu Trade

Zulu Trade logo

Zulu Trade says that they are the most important copy trading website in the world. It offers Thousands and thousands of traders to copy their strategies. Zulu Trade provides both Demo and Real accounts for free.

Minimum Investment -

  • With AAAFx Broker - $300, Euro250
  • Recommended deposit by Zulu Trade Euro 2000

Leverage -

  • Depend on the Broker

Financial instruments you can trade -

  •  FX
  • CFDs
  • Cryptocurrency

Trading Platforms -

  • MT4
  • Ctrader

Contact Information -

  • United Kingdom, London - +44-20-33558805
  • Deutschland, Frankfurt - +49-69-2551-14435
  • Russia, Moscow - +7-499-9187378
  • Spain, Madrid - +34-911-877655
  • Greece, Athens - +30-213-0176-397
  • United States, New York - +1-917-6282237
  • Mexico, Mexico City - +52-55-41708137
  • Colombia, Cali - +57-2-8912645
  • Japan, Tokyo - +81-3-45888774
  • China, Beijing - +86-10-84181720
  • Australia, Melbourne - +61-39-0084202
  • Central Support Hotline - +30-213-0176-399 (International charges might occur)
  • support@zulutrade.com

3.Naga Trader

Naga Trader logo

Naga Trader was originally founded as “SwipeStox”. In 2015, there was a rebranding plan by the management team. According to the management plan, it became “Naga Trader”. As a major Fintech company, they offer social trading and copy trading. Other than that they offer the best market tools around the world.

Minimum Investment -

For Live Accounts, minimum investment starts from $1 or Euro1 up to $10000 or Euro 10000.

To deposit to your trading account, Naga Trader provides various options.

  • Credit Card - VISA & Mastercard
  • E-Wallet - Giropay, Skrill, Neteller, Paysafecard, and Klarna
  • Bank Transfer - In EUR/USD or CZK
  • Cryptocurrencies - Bitcoin, Ethereum, Dash, Litecoin, Bitcoin Cash or NAGA Coin

Leverage -

  • Default leverage 1:50 up to 1:200

Financial instruments you can trade -

more than 800 assets available

  • Forex
  • Cryptocurrencies
  • Indices
  • Stocks CFDs(681 assets)
  • Commodities
  • Futures
  • ETFs
  • Gaming(Virtual Items)

Trading Platforms -

  • Naga Trader
  • MT4

Contact Information -

  • South Africa - +27 10 500 2220
  • Mexico - +52 55 5164 0455
  • Malaysia - +60 1 800 81 9205
  • Indonesia - +62 21 50861528
  • New Zealand - +64 9 801 0303
  • Vietnam - +84 24 4458 2131
  • India - +91 80004 02645
  • Peru - +51 1 7083730
  • Global Support - +44 20 3318 4345 / +44 33 0808 8867

Create NAGA Account for free

4.Tradeo

Tradeo logo

Tradeo is a powerfully simple online trading platform. It was founded by Yonatan Adest in 2011 and launched in April 2012. Tradeo offers its traders many new features. Some are, facilities to analyse other traders trades, follow them and copy them automatically.  In the early stages, Tradeo supported with MT4 and many broker companies worked with them. In 2014, they launched their new platform and advanced as an individual brokerage company as well.

Minimum Investment -

  • To start trading - 250 EURO/USD/GBP
  • Particular Tradeo customers - $100

Leverage -

  • 1:100 / 1:200

 

Financial instruments you can trade -

200+ assets

  • Currencies
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

Trading Platforms -

  • MT4
  • Own trading Platform

Contact Information -

  • +357-25262292
  • support@tradeo.com

5.Darwinex

Darwinex logo

Darwinex, initially named as TradeSlide is an online social trading platform. It was founded in 2012 by Juan and Javier Colón Bolea and Miguel Ángel Gonzalez. Darwinex has a special tool that analyses a trader's strategy. It analyses and rates the strategy according to parameters like risk, scale and performance.

Minimum Investment -

  • Personal accounts - 500USD 500GBP 500Euro
  • Cooperate accounts - 10000USD 10000GBP 10000Euro

Leverage -

  • 1:200

Financial instruments you can trade -

300+ assets

  • FX
  • CFDs on Indices
  • Shares
  • Commodities
  • Cryptocurrencies

Trading Platforms -

  • MT4
  • MT5

Contact Information -

  • +44 20 3769 1554

6.Ayondo

Ayondo logo transparent

Ayondo is a Fintech company found in 2008 by Thomas Winkler and Robert Lempka. In its early stages, Ayondo worked as a Financial Broker for markets. Ayondo offers social Trading by allowing its users to replicate expert traders. Users also receive advantages from operators with professional knowledge. In 2013, Ayondo was listed among world’s top 50 Fintech companies the “Fintech 50”.

Minimum Investment -

  • In Social Trading - Euro 2000

Deposits can be done by using all Credit and Debit cards free of charge. Cards outside the EEA(Europian Economic Area) charges one time 1.75% fee.

Leverage -

  • 1:200

Financial instruments you can trade -

  • CFD
  • Forex
  • Stocks
  • Indices
  • Cryptocurrencies
  • Commodities

Trading Platforms -

  • For Social Trading - Web Trade - available both as a web app and a mobile app
  • For Individual Traders - TradeHub - available both as a web app and a mobile app

Contact Information -

  • +44(0) 20 3330 0865
  • support@ayondo.com

7.Collective 2

collective2 logo

Collective2 is a privately held company based in New York. It was founded by Matthew Klein in 2001 as a company provides algorithmic trading systems. According to Collective2, they are building a software platform that replaces the entire hedge-fund industry. They allow users to follow Trade Leaders and automatically copy their strategies. Collective2 tracks every strategy of the traders. If you are successful, they will available your strategy for the world. When others follow your strategy you will automatically get paid.

Minimum Investment -

  • Depends on broker
  • Strategy fees  - from $20 to $ 200 per month
  • Auto trade fees - $49 per month

Leverage -

  • Depends on Broker

Collective2 calculates the maximum leverage used by any Strategy and display as a maximum daily average.

  Financial instruments you can trade -

  • Stocks
  • Options
  • Futures
  • Forex
  • CryptoCurrency

Trading Platforms -

  • C2WebTrader
  • MT4
  • MT5
  • Ninja Trader
  • Trade Station

Contact Information -

  • (914) 610-3979

8.Fx Junction

fx junction logo

Fx Junction is an open network social Trading Platform founded in 2011. It targets all Meta Trader traders. Any trader can freely link the existing Meta Trader account to Fx Junction. Their mission is to create an open Social Trading Network. In this network, traders can share knowledge and make successful decisions in Forex.

Fx Junctions latest feature Auto Copy allows traders to replicate trades instantly. Also, traders can use real-time tracking of open positions. It will offer stop losses and take profits automatically apply.

Minimum Investment -

  • Depends on the Broker

Leverage -

  • Depend on the Broker

Financial Instruments you can trade -

  • Any instrument allows by the Broker

Trading Platforms -

  • MT4
  • MT5

9.Myfxbook Autotrade

myfxbook autotrade log

Myfxbook Autotrade was found in 2011. This platform offers many services including analysing and auditing trading systems all around the world. If you are going to follow a trader or an automated system, you can audit the account by Myfxbook Autotrade before investing money. Traders can track all their tradings using this site easily.

Myfxbook offers “trade mirroring” service for the traders. It also offers Automated trading under Auto trade. You can copy any trader or a system easily using Auto trade.

 

Minimum Investment -

  • $1000

Leverage -

  • Depends on the Broker

Financial Instruments you can trade -

  • Depends on the Broker

Trading Platforms -

  • Autotrade Web platform and mobile platform
  • MT4
  • MT5

10.Trade360

Trade360 logo

Trade360 is an innovative social trading company owned by ST Services Ltd. They provide a service call Crowd trading. Crowd trading based on an algorithm depends on the overall financial market. It is different from copy trading or mirror trading. In Crowd trading, they show the majority of traders as the crowd. Indicators show what crowd make out of the market. Followers can take an overall idea of the market by the crowd. We never recommend you to trust crowd indicators because of no one guarantee about indicators.

Minimum Investment -

  • Mini - $500
  • Standard360 - $1000
  • Gold - $5000
  • Platinum - $10000
  • VIP - $50000
  • Islamic360 - $10000

Leverage -

  • Currency - 1:400
  • Commodities - 1:200
  • Stocks - 1:20

Financial Instruments you can trade -

  • Currencies
  • Commodities
  • Stocks
  • Indices
  • ETFS

Trading Platforms -

  • MT4
  • Web platform
  • Mobile platform

Contact Information -

  • +357-25-030-622

Official Whatsapp - +44 770 0304 093

Introduction to Social Trading

Social Trading and you

Social Trading And You

Social Trading offers you safer trading experience with a minimum risk. It will take Forex and all other online trading methods to a whole new era in the near future. This lesson is for all forex beginners for a stable foundation about Social Trading.   

From the 3.8 billion internet users all over the world, 9.6 million do online trading. These traders do trading using many different types of financial instruments via various trading platforms. Banks, financial institutes and Forex brokers work 24/5 to handle these transactions and continue five days a week Forex trade routine. As an individual Forex trader, you always have to take risks with your decisions and the money you invest in.

People everywhere need a proper way of earning money with minimum risks. From the constantly increasing 7.7 billion world’s population, you are just a single entity. You may have a daily routine, carrier life or full of life dreams to achieve. Therefore, have you ever stopped thinking of finding a safer way to earn money to follow your simplest dreams?

What is Social Trading?

Here we have the safest solution for all who want to earn money through online trading. Social Trading or Copy Trading is a concept which allows traders to copy successful strategies of successful traders. After copying, you can apply them and earn money only using a set of simple commands. Back in 2006, worlds’ first social trading platform “eToro” was founded as RetailFX. In this stage, even the founders might not have thought about today’s situation. Today, not only eToro but many other social trading platforms are in the trade. They provide millions of traders safer opportunities to earn money through online trading.

Think about yourself with a little money in your pocket. You can invest in Forex as a retail trader. Once you did, you must bear all the risks according to the asset you choose to trade. Maybe you do not have time to watch the news and financial and market updates. Without a proper Forex signal source, you will lose all your money/investment just by taking wrong decisions in wrong situations. For this, the uses of copy trading will guarantee profits without any risks. This is a good example of how Copy Trading helps individual traders for their success.

Features of Copy Trading

In Social Trading platforms, as common factors, you can read about professional traders strategies, behaviour and follow them. In advance, you can allow your trading account to copy pro traders strategies and apply automatically. When the pro trader you followed, achieve a profit, you are also be profited. But if his strategy does not enough to win, you must bear the loss. The reason is you are the one who selects your pro trader to follow. In Social Trading platforms, you can share your trading strategies with other traders. Furthermore, you can share them either free of charge or under a commission defined by the platform. For a better income in Social Trading, you do not want to be that much professional. You only need to be talented in making decisions and share them with your followers.

Up to now, you have learned about Copy Trading, its features and the benefits. Let’s look at the dark side of copy trading. Think about copying and applying a strategy of another trader. The situation of the relevant market will not be the same when compared to the time of the pro trader’s application. Results may drive towards a huge loss. Maybe there is a small time lag between the pro traders trade open time and yours causing you losses in your trade. These disadvantages made Copy Trading a little riskier while researching a method of risk-free Forex Trading.

The first step to Trading

Now you know the basics and features of Copy Trading as well as the risks. Let’s take a look into the social Trading platforms available for traders around the world. From hundreds of Social Trading platforms, below list shows 12 most popular and accessible platforms for your convenience. You can individually review every platform and make your decision in starting trading.

World Most Popular Social Trading Platforms

  1. eToro 
  2. Zulu Trade
  3. Naga Trader
  4. Tradeo
  5. Darwinex
  6. Ayondo
  7. Collective 2
  8. MyFXbook AutoTrade
  9. Trade 360
  10. Tradency Mirror Trader
  11. FX Junction
  12. MyDigiTRade

If you want to read more about the world’s most popular platforms, please refer World’s Best Social Trading Platforms 2019

All above-mentioned platforms allow you to copy other professional traders but there you face a few limitations and risks. You yourself must take the responsibility of opening and the trade. To avoid these factors, algorithmic trading/ automated trading is the solution brought by professionals in the field of financial technology.

Algorithmic Trading / Automated Trading

To avoid the above-discussed disadvantages and create a trading portfolio that allows you to trade in a risk-free environment, people started to do research on binding computer technology and financial markets together. From the early stages in 1930 to 1990s, many professionals in the financial sector created computer programmes and algorithms. They worked a thousand times faster than the human brain to do calculations and predictions. Even they could automatically open and close trades in Financial Markets. These Computer programmes, algorithms were developed and tested by various investors in various situations. In today’s world, they have created a whole new section in investments called “Algorithmic (Automated) trading”

Algorithmic Trading/Automated trading can be explained as follows. It allows you to give all the decision making and prediction part of a trade to a computer program and wait until achieving profits. These computer programmes/algorithms are created by evaluating many successful trading strategies and they are constantly tested using many parameters. There are no human-related errors inside these programmes. So that the computer programs/algorithms are in the very high potential of offering profits. In the past few years, development of the above-mentioned computer programmes reached an era of creating “bots”. The sole purpose was to earn money through online trading with zero risks in 100% profit gaining situations.   

One of the worlds’ most famous Automated trading portfolios is CopyFunds by eToro. As a retail investor, the initial investment in Automated trading portfolios is comparatively higher than other trading methods. In the past, both retail and institutional traders used algorithmic trading. Today, most of the huge financial institutes use this facility in trading very large amounts. 

Conclusion

After reading this brief explanation, hope you have learned well about Social Trading/ Copy Trading and Algorithmic trading. Purpose of this lesson is to create a stable foundation about Social Trading, a safer way of trading for all of us. Stay with us to learn more about Forex, Investments and online money earning. We will be back to you soon.