The foreign exchange industry has become really popular over the last few years. Even today, there are many new traders joining the market and, logically, the number of brokerage companies is growing as well. Although most of these companies are legit and really do try to provide their traders with a safe trading environment, you may sometimes come across a broker that will try to scam you. That’s why it’s very important to recognize the companies that cannot be trusted, especially if you are a novice in the field of foreign exchange. One of the most common ways to scam traders is through forex managed accounts, so if you would like to find out what these accounts are and how to avoid them, just keep reading!
Forex managed accounts | How to Recognize Them
Now then, there are scam brokerage companies that will sometimes try to sell you forex managed accounts. In other words, they will ask you to give your money to a ‘professional’ trader who will trade instead of you for a percentage of the profit. It should be quite clear that, once you give them your money, they won’t make you any profit in return. It’s much more likely that they will simply take your money and leave. But even if some company really wants to provide you with a legit managed account, you should also say no. By accepting managed account you will lose the opportunity to gain some real trading experience and you will always depend on someone else’s trading. But don’t let the fact that Forex Scam Brokers exist scare you – they are a very small part of the industry. Nevertheless, if you would like to know how to protect yourself from forex scam brokers that often offer forex managed accounts, stay with us!
Forex managed accounts | How to Protect Yourself
First of all, before making any investments, you should definitely do an online investigation of the broker that you plan to open your account with. Nowadays, there are many forums where you can find personal experiences written by real traders, so that can help you a lot. You should also check out if there were any complaints about withdrawing the money, which is the most common problem when dealing with scammers. Furthermore, you should firstly open the most basic account, so even if the broker is a fraud, you won’t lose too much money. Expert analyses of brokers’ offers can also provide you with loads of useful information and help you find the Best Forex Brokers. We have many of them right here on our website, so we recommend you look around a bit. Oh, and one last thing: you should take a very close look at the terms and conditions and read it very carefully. Not because scammers will tell you there that they will scam you, but so that you know exactly what to expect from the company you’re dealing with.
Forex managed accounts | Conclusion
We can conclude that opening forex managed accounts wouldn’t be the smartest thing to do. Besides losing valuable trading experience, there’s a big chance that the broker that offers you a managed account is a fraud. Unfortunately, forex scam brokers have been known to appear, but there definitely are ways to recognize and avoid them. Be careful, avoid forex managed accounts, trust yourself and your trading skills, and you will definitely enjoy your trading experience more.