What is Forex Signal-Sellers Scam?
The Forex Signal-Sellers Scam is the latest trick by con artists trying to get rich by cheating inexperienced traders.
We can define it as a sophisticated form of binary options signal scam that will convince you into purchasing signals, promising an increase in your investment capital. The scammers will offer you high payouts, but what you get is just a tiny payout and mostly nothing at all.
Once the signal-seller gets paid his commission by the brokerage house, you will lose your funds immediately.
It's unclear how these con artists are getting access to their victims' accounts, but it appears they use popular trading platforms like XM or OANDA. They probably have a "client" account at one of those binary options platforms and use this account to access their victim's money on the other side.
In any case, you should stay as far as possible from any signal-seller-related offer since they are all scams trying to steal your money.
Some people or companies sell Forex signals. They are usually complete trade recommendations, like buying EUR/USD at 1.1700 and selling it at 1.1800 with a stop-loss at 1.1650. It can be popular for newbie traders because they might paying for good trade recommendations.
Although some people provide good signals, most of them make up fake ones. For example, if someone shows you a track record on their website linked to a trade explorer, it might not be real. There are even people who get scammed by other scammers.
Scammers provide signals that are not good. The best way to know if someone is a scammer is to ask them if they provide high-frequency signals or try their trial account for two weeks. If the signal causes people to lose money, then it's not good.
How Does Forex Signal-Sellers Scam Work?
It goes like this: you get a message from some "Expert trader" who claims he has access to an excellent algorithm. For a fee, of course, he will provide you with accurate buy/sell signals and manage your investments accordingly.
Well, that's nonsense since there is no such thing as a 100% accurate trading system. If someone could predict the market movements all the time, they would become one of the world's wealthiest people in just a few years and wouldn't be trolling internet forums looking for victims!
It gets even worse: they will offer you bonuses and additional "free signals" if you open a trading account and give them access to your funds. And this is where they scam you big time!
Their offer sounds too good to be true, right? That's because it's just another scam trying to get their hands on your money. Once they get paid their commission by the brokerage house, you will lose everything in just a few minutes!