I often see news about forex scams, so I want to share my experiences and what to watch out for because many friends have been deceived.

In fact, forex is not a scam at all. It is a legal foreign exchange trading market. The problem is that many scammers use the name forex to trick people into investing.

The most common forex scam patterns are roughly as follows: first, fake brokers without licenses from government agencies. They pretend to have licenses from foreign countries, create fake websites, fake emails, and claim to be regulated by well-known authorities. Second, selling AI systems that claim to trade forex automatically and yield 20% returns per day, which is highly unlikely.

Another common method is cloning reputable companies, creating fake websites, using foreign phone numbers, and deceiving people into thinking they are contacting real companies. Additionally, some impersonate professional traders on Facebook, Instagram, and TikTok, encouraging people to send money into accounts to learn forex trading tips. But once the money is in, they run away.

Warning signs to watch out for include guarantees of high returns. Legitimate brokers will never guarantee returns because the forex market involves risk. Also, be cautious if there are urgent requests to deposit more money or offers of unrealistically high bonuses.

There was a case of a fake forex broker called "3D Forex" in Thailand, pretending to be a forex broker and collecting money from investors ranging from 50,000 to 60,000 baht, promising 10-15% monthly returns. If they recruited friends, they earned a 5% commission. Thousands of victims were involved, and eventually, they were legally arrested, but most investors did not get their money back.

If you suspect you are being scammed in forex trading, check whether the broker is genuinely licensed through agencies like ASIC in Australia, FCA in the UK, or MAS in Singapore. You can easily search on Google. If you find that the broker is unlicensed, do not transfer any more money.

What to do if you suspect a forex scam: gather all evidence, save emails, messages, phone numbers, and account information used for contact. Then report to the police and hire a lawyer to take legal action. Never transfer more money at the scammer’s request.

Safe forex trading means choosing a broker with clear licensing and regulation. Do not let others trade on your behalf, as that is the easiest way to get scammed. Do thorough research before investing because prevention is better than cure.