How to Avoid Scams, Common Scams & Types of Scams

Trading has gone mainstream in the recent weeks – everybody seems to be making huge profits.

Everyday, the internet is flooded with new apps, training programs, communities, gurus, cryptocurrencies, signal services and more. More people are trading than ever before.

We live in a moment of increasing opportunities for the average trader – but also increasing dangers of being scammed.

Technologies that used to be the privilege of the elite Wall Street firms are now available to everybody. This is why automated trading for small investors and traders has been growing rapidly in the last few years.

Automated trading software has been a fast-growing category, with new bots being released almost everyday and being sold on various social platforms like Facebook, Reddit and Instagram.

Why most trading bots don’t work.

  1. Outdated technology. Developing a reliable bot can costs hundreds of thousands of dollars. And that’s just the initial investment. Markets change quickly, requiring constant updates and improvements. Many firms are unable to follow through and don’t develop their trading bots after launch because it’s too expensive. At Galileo FX, we have a team of 22 software engineers and software architects that work everyday to keep the bot updated with the latest changes in the markets.
  2. Outdated strategy. A trading strategy can work for few weeks and become completely outdated in just few days. The markets are always changing and adapting to new information and strategies. Most bots used to work well, then became useless as the strategy became obsolete. Galileo FX offers a complete automated trading strategy is based on Consecutive Bullish and Bearish signals. This is the same strategy that has been used by Hedge Funds and Financial Institutions for decades because of its accuracy and adaptability to new market conditions.
  3. Using the wrong broker. When a trading bot is extremely profitable, it can put a broker out of business. Selecting a broker that is transparent and bot-friendly can make the difference. Brokers don’t have your interests in mind – they have their own interests. The wrong broker can undermine your bot’s trading activity. We always suggest to test different brokers on Demo and Live before making your decision. While this process can be a little time-consuming, it’s worth the investment of your time, because selecting the wrong broker can cost you not only time but potentially all your trading capital.
  4. Nigerian scams. Scamming has been common practice in West Africa since the late 1800s. Armed with their smartphones and internet access, scammers have adapted to our day and age. These scammers usually contact you by private message on social network platforms like Instagram, Facebook, YouTube and Reddit. Usually, scammers create fake accounts with Western-looking profile pictures and names to look more trustworthy. Almost always, they expect to be paid by Bitcoin, CashApp or Western Union/MoneyGram – because it’s much more difficult for the victim to recover his money and for the authorities to track the transfer.

(Checklist) Before Purchasing a Forex Trading Robot

  • Check reviews on TrustPilot or other trusted reviews websites.
  • Check that the company has an about page.
  • Check if the company accept PayPal payments.
  • Check comments on Facebook, YouTube and Twitter.
  • Don’t trust MyFxBook results, as they can be easily manipulated.
  • Search on YouTube for videos of the bot in action without interruptions.
  • Don’t send any money through Bitcoin, Bank or other Crypto.

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