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  • Beginner
  • Intermediate
  • Advanced
  • Completion
  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Types of Forex Scams

If you’ve been in the Forex game for longer than a day, you’ve probably come across a few of these. I’m going to break it down as best as I can!

Copy & Paste Signals

If someone is marketing that you can sit at home and copy and paste their trades and earn a profit, it is a scam. I don’t care if they say they win 95% of the time. Repeat after me: It. Is. A. Scam. Not only is it a scam, it’s illegal to sell guaranteed signals if you’re not a licensed financial advisor in the securities industry. Most people don’t know this, nor do the research to understand why, but that’s the truth. This applies even if the person or company is saying: “Our mentors have been trading for 20 years.” Ask if they are licensed. NOTHING is guaranteed in ANY financial market. I don’t care if they have 5 Lamborghinis. If they say they guarantee you’ll make 10-50% a month, please pass.

Lambo Life

As far as Instagram, you see EVERYONE “involved” in Forex driving a lambo or with a suit on, claiming they’re “Chairman/Platinum” something, usually meaning they’re in a MLM. Please don’t try and “recruit” people to join your Forex team if YOU personally don’t understand Forex. Some people will look at a chart and can’t even distinguish a bearish candlestick from a bullish candlestick but will be on Instagram and Twitter demanding everyone join their downline and make some money because: “Forex is a 6.6 trillion dollar market and the banks trade it. Why aren’t you? You must not want success.” Shaking. My. Head.

Managed Investment Accounts

A managed account is when you give someone money to “trade” for you. They market on their website that they can give you gains of 10-30% when in reality, it’s a Ponzi scheme! They spend YOUR money on a luxury car and get someone else to trust them with their money to trade on their behalf, and they use a percentage of THEIR money to pay YOU back to show you they’re doing a good job, and so on and so forth! Please do not fall for these types of scams. I do not recommend letting someone trade for you, but if you decide to go this route, please make sure the trader is licensed!

Managed Investment Accounts

If you see someone promoting their secret algorithm/bot, please stay far away. What they’re basically saying is that they have created an automated machine that uses their “system” to find & make trades for them. What the people selling the bot do is market that the bot works 90% of the time and you can make money from wherever you are. They sell their algorithm for $30 and move on about their day while people pay for a shortcut to success. The issue with these algorithms is that they don’t adjust to the ever-changing market. The market is NEVER the same, yet these bots are pre-wired to find and make trades for you using old data. Pass from this too.

Keep all of this in your mind! There are tons of reputable sources out there but for every reliable source, there’s 5 scamming businesses out there as well (made that up in my head as I don’t know the true statistic). But in all seriousness, there are several entities that do a great service to Forex. Utilize as much free content as you can via YouTube, BabyPips, or the free content on this website, which are all amazing. Feel free to invest in your own education, whether it be through books via Amazon, or an actual trading course such as this one. Just remember to do your research and make sure the course isn’t a signal selling service or a Forex bot automation. Other than that, do what’s best for you! 🤓