How To Identify Trading Scams
Yes, the main mission of our Income Mentor Box Day Trading Academy is to help you become professional and profitable day traders. However, there are lots of trading scams out there that you need to be weary of. Being able to identify trading scams for what they really are is what we want to teach you today!
Trading Scams – What Does The Leadership Look Like?
One way to identify trading scams is by taking a look at the leadership. Something that we here at the Income Mentor Box Day Trading Academy know all too well is that you must be able to trust the leadership of a trading application.
You can quickly tell if a trading application is a scam if the leaders are nowhere to be found. If you are on the website of some kind of autotrader, and the owners are nowhere to be found, you should turn around and head home right away.
You always have to think about why these trading scams do not disclose ownership or leadership information. It is because they are doing something shady and illegal, and they don’t want to end up in prison for stealing your money! The bottom line is that you always need to be able to confirm who the leaders and owners of any application are before you can rule out the possibility of it being another one of many trading scams out there!
Trading Scams – What Is The State Of The Company?
Another way to identify trading scams is by looking at the company itself. One of the main things to look out for here is the company address and registration details. When you look at various auto trading applications, you will notice that they have a listed address for the company.
Go look up the address on Google Maps and see if it is real and if it matches. If the address is bogus or belongs to another person or company, you can rest assured that the trading application in question is bogus.
You should also look up to see whether or not the company in question is registered as an official business where it claims to be registered. You should also check with both the FCA and the FTC to see whether or not the company is licensed to engage in such financially related matters. If you cannot find an address, registration info, and licensing details, you can rest assured that it is just another trading scam.
Trading Scams – What Does The Website Look Like?
Another way identify trading scams is by simply looking at the website. If you are looking to use some kind of automated trader, the website itself is usually a fairly good indication of what you can expect. What is the writing like? Is the writing professionally done? Does it have errors? Does the writing actually add value to the page, or is it just senseless rhetoric?
You should also look at the images and graphics on the site. Does the website bombard you with random images and videos, or does the site only feature images and graphics which help you to understand what is going on. If a website looks like it was thrown together over night, is very low budget, and just does not look good, it is safe to assume that it is another one of those trading scams you need to stay away from!
Trading Scams – What Do Others Have To Say About It?
these scams are usually not very quiet in nature. Ok, so they will always have really positive user testimonials featured on the website. However, it is easy to tell when these are fake. Often, trading scams will feature testimonials that look as though they have professionally written. Often they are also anonymous or use fake names. You should never rely on the user testimonials on the website itself.
However, what you should do is to do some research online and see what the general consensus is. General consensus is usually a pretty good way to determine whether or not an automated trading program is the real deal. If everybody is complaining about losing or being ripped off, it’s another one of those trading scams that you need to stay away from at all costs!
Trading Scams – What Does The Business Model Look Like?
Trading scams are often very vague in terms of how they plan to generate money on your behalf. Whenever you go to use any automated trader, you need to know exactly how it works. There are many scams out there which make really vague claims or just never really tell you how the software in question works. Folks, if the autotrader or trading platform refuses to tell you exactly what it is and how it works, it is probably a trading scam. You never want to use programs that are very vague in nature.
Trading Scams – What Are The Advertised Profits?
A big telltale sign of a scam is what they advertise in terms of profits. What you need to know is that there is never any guarantee in trading. Risk, specifically the risk of loss, is inherent in the market and there is just no way to get around it. Trading scams will promise you huge returns without a shadow of a doubt. So, when it comes to identifying trading scams, they will always advertise ridiculous returns and they will guarantee them too.
Trading Scams – Is There Some Kind Of Shady Referral System In Pace?
Generally speaking, referral systems are an indication of trading scams. Now, this is not always the case, as some systems do have legit referral systems. However, you do want to do your research. Do they actually pay out the referral bonuses as promised?
Identifying Trading Scams – Final Thoughts
The bottom line is that identifying trading scams is extremely important if you plan on using any autotrader. Here at the Income Mentor Box Day Trading Academy, our goal is to help you be the best traders you can be, and a part of this is preventing you being ripped off by trading scams!