Is forex a pyramid scheme? Forex trading is not a pyramid scheme. Forex trading is the same as stocks or commodity trading, a legal business whose main purpose is trading, buying, and selling assets and not pyramid share marketing to enroll others in forex business. The Forex pyramid scheme doesn’t exist if you use regulated brokers and avoid scam ads.
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.
So is forex a scheme? Forex is not an intriguing business; it is a legitimate trading method, like stocks trading or commodity trading. Large banks trade forex as same as retail traders too.
However, some people try to use a pyramid scheme in the trading business.
So, how to spot a pyramid scheme?
Unfortunately, many people tend to make vague and bogus rumors about forex. In fact, some people may even say that forex trading is a pyramid scheme. But, in reality, it’s not the right thing! Forex trading doesn’t follow the pyramid scheme ever. The best part is that forex trading gives you complete control so that you can hit the buy or sell button as per your individual decision. You have the full privilege to close out the desired trade as per your preference. As a trader, you can do a comprehensive analysis of the available forex signals and choose the most profitable trade that can help you earn revenues in no time.
Forex pyramid scheme can exist!
Having said the aforementioned positive aspects, you are also needed to note some of the negative schemes about forex trading that may scam you! For example, you may find several advertisements that may assure you a quick fortune in forex trading. But, please do not ever become prey to such fake advertisements and promises! Please note that there are no easy shortcuts to making a quick fortune in forex trading. Thus, please be aware of such false promises. For example, some websites or apps may offer you that you can easily earn forex trading profits without doing absolutely nothing. Although such claims may tend to sound quite nice and easy, these are nothing but scams. Please avoid such forex scams offers diligently. Or else, they may ultimately ruin your total profits.
Finance regulator bodies recognize companies that use multilevel marketing to create pyramid investment schemes. A forex pyramid scheme exists only when companies promote forex and forex trading using multilevel marketing or create pyramid investment schemes.
Example of a forex pyramid scheme
The Global Trading scammers claimed they took advantage of price differences on various cryptocurrency exchanges to profit from arbitrage – simply buying cheaply and selling at higher prices. Really, they just took investors’ money.
John D. Black and his affiliated entities Financial Tree, Financial Solution Group, and New Money Advisors and his associates Christopher Mancuso and Joseph Tufo, set up and ran a fraudulent trading business from June 2015.
GNTFX Owner made the forex pyramid scheme.GNTFX cold-called potential clients and convinced them to invest in the company. The victims were told their cash would be used to trade in Forex markets, and they showed victims’ fake accounts grew from $4,000 to over $26,000 in less than a year.
How to avoid the forex pyramid scheme?
Forex trading can be profitable only when you have learned to use the right strategy and risk 1% to 3% of your portfolio per time. Even if you are using brokers, you must do some research and perform a short demo first with the broker (by making a small deposit and withdrawal) to ensure that it’s reliable and trustworthy. Without this, it will be an absolute risk if you randomly select a broker and rely on it.
Many people on the internet may claim to sell you forex signals, indicators, software, and systems. Before selecting the right one, please do thorough research and search for the available reviews to make a costly mistake. It’s better if there is a free trial option or a money-back guarantee. If such options are not available, please do your own research and not purchase/opt for anything without proper analysis.