How to avoid falling victim to FX trading scams
Forex trading is no longer an afterthought for some Nigerians, particularly with the rise of applications and other internet-based stages that make it simpler to exchange. As more people enter this market, con artists up their game by employing a variety of methods to defraud unsuspecting merchants.
As a result, business experts insist that participating in the forex market necessitates more information and the implementation of security measures in order to avoid falling victim to con artists.
Recent research in Nigeria by a major forex trading stage, OctaFX, also confirmed this, with data uncovering a greater portion of tricks in forex trading in the country. According to the study, 82.4% of respondents admitted to falling for one type of trick or another. This is despite the fact that it has been stated that the rise in forex scams is undermining the support of many Nigerians on the lookout.
While the country has seen significant growth in both the number of merchants and trading activities recently as a result of the rise of web-based trading, which prepared for more support beyond the customary option that has existed for quite some time, According to the OctaFX research, various risks associated with the rapidly developing financial market continue to act as impediments to broad acceptance.
The report, titled 'The Rising Pattern of Online Forex Trading in Nigeria,' highlighted key risks to forex trading in Nigeria and proposed solutions to mitigate their effects in order to encourage more Nigerians to participate on the lookout.
According to the information gathered by OctaFX through its investigation, which included 1,2254 respondents, 410 females and 844 males, Nigerians are succumbing to forex trading tricks for a variety of reasons, the most widely recognized being the assumption for painless income. This lends credence to the adage that nothing good comes easily, not even in forex trading.
Important discoveries
An examination of OctaFX's research on respondents' experience with forex tricks reveals that the vast majority (824%) had encountered at least one of several types of forex tricks.
It was also discovered that a large proportion (41.9%) of respondents succumbed to con artists due to their expectation for income without working.
In the study, a few percentage points (11.2%) experienced fraud due to erroneous/confusing duplicate trading systems, while a much smaller percentage (0.1%) experienced fraud due to 'bombed commitments of enormous returns.' Nonetheless, this suggests that the majority of Nigerian forex dealers require adequate trading information."
The investigation of information revealed that merchants' orientation and number of years trading forex significantly affect their likelihood of succumbing to hightail it. It was concluded that male respondents are more powerless. Underscoring the importance of information, the study also determined that losing money to con artists in forex trading is unavoidable when the broker lacks adequate information.
According to the findings of the investigation, the majority (69.7%) of the respondents surveyed claimed to have been duped out of money ranging between N5.100 and N50.000. While a couple (2.5%) have been duped for N150.100 or more.
In contrast, a small percentage (17.1%) of respondents have never encountered a scam in their years of forex trading. This also demonstrates that, despite the fact that there is a strong resemblance for bringing in 'income without work,' most Nigerian brokers are cautious about the amount they exchange on forex stages.
Protective measures
They say that anticipation is preferable to fixing. Losing to con artists has no cure other than to accept one's fate, become acquainted with the unpleasant illustration, and move on. As a result, setting up anti-trick measures is critical for all dealers.
Keeping in mind that there will always be Forex scams as long as there is a Forex market In its research, OctaFX noted that improving knowledge of online security and the wellness of assets has now become a prerequisite for doing forex trading online. It also recommended that forex traders take safety precautions to avoid being duped when trading.
"Virtual private network (VPN)/intermediary server, antivirus software, reinforcement data, and sophisticated secret word are all aspects that can assure the safety of individual pitch and financial security in Forex trading. The analysis revealed that it is common for clients to use different insurance tactics while trading on Forex trading stages. The respondents' perception of the employment of a particular security strategy was made obvious by their focus on just the use of antivirus software and VPN/Intermediary server use during a trading meeting on a forex stage, the report noted.
Conclusion
As a businessperson, the rule is to spend as much time as necessary learning everything possible about online forex trading before concentrating on effective financial planning. While the importance of knowledge and a deeper understanding of forex trading for traders cannot be overstated, it is crucial to choose a reliable exchange platform. An important takeaway from the OctaFX research is that traders must avoid greed and understand that there is no painless way to make money. Following the safety and welfare recommendations in the report will help a lot in preventing accidents due to trickery.
