How Not To Be A Victim Of Scams When Trading Forex – Nairametrics | Jewelry Dukan

Forex trading is no longer a new endeavor for many Nigerians, especially with the emergence of apps and various online platforms that facilitate trading. As more and more people enter this market, scammers are also improving their games using a variety of tactics to scam unsuspecting traders.

For this reason, the industry experts insist that participating in the forex market requires deeper knowledge and the implementation of security measures in order not to fall victim to scammers.

Recent research in Nigeria by a leading forex trading platform, OctaFX, also confirmed this with data showing a preponderance of forex trading scams in the country. According to the study, a staggering 82.4% of respondents admitted to having been taken in by some form of scam. This is true even when the rise in forex scams was found to be threatening the participation of many Nigerians in the market.

While the country has seen immense growth in both the number of merchants and trading activities in recent years due to the advent of online trading, paving the way for greater participation beyond the traditional alternative that has existed for several decades, OctaFX’s research found that various threats related to the fast-growing financial market continue to act as barriers to widespread adoption.

The report entitled: ‘The rising trend of online foreign exchange trading in Nigeria’ highlighted the key threats to forex trading in Nigeria and suggested measures to mitigate their impact in other countries to encourage more Nigerians to participate in the market.

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From the data collected by OctaFX as part of its research where 1,2254 respondents were interviewed including 410 women and 844 men, it has been found that Nigerians fall for forex trading scams for various reasons but most commonly those who fall for it are expecting easy money . This reinforces the adage that nothing good comes easy, even in forex trading.

Important Findings

  • An analysis of OctaFX’s research into respondents’ experience of Forex scams shows that the majority (824%) have experienced at least one of several types of Forex
  • It was also found that a significant proportion (41.9%) of respondents fell prey to scammers expecting a quick buck.
  • In comparison, only a few proportions (11.2%) experienced scams due to false/confusing copy-trading mechanisms, while a much lower proportion (0.1%) experienced scams due to “failed promises of big returns”. However, this implies that most Nigerian forex traders lack proper trading knowledge.”
  • Analysis of the data showed that gender and the number of years of trading Forex have a significant impact on the likelihood of traders becoming victims of scram. It was concluded that male respondents are more prone to this

Emphasizing the importance of knowledge, the study also found that losing money to scammers when trading forex is inevitable if the trader does not have sufficient knowledge of the market.

According to the results of the research, the majority (69.7%) of respondents confirmed that they had been scammed out of between N5,100 and N50,000. While only a few (2.5%) were scammed with the tune of N150,100 and above.

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In contrast, only a small proportion (17.1%) of respondents have never experienced any form of fraud over the years of forex trading. This also shows that despite the pronounced propensity to make “easy money”, most Nigerian traders are cautious about the amount they trade on Forex platforms.

protective measures

Prevention, it is said, is better than cure. Losing to scammers definitely has no remedy other than accepting your fate, learning the bitter lesson and moving on. That is why the implementation of anti-scam measures is very important for all merchants.

While pointing out that forex scams will exist as long as the forex market exists, OctaFX noted in the report that improving knowledge of online safety and keeping funds safe is now vital in online forex trading has become. It added that the Forex traders must take security measures to avoid being scammed while trading.

“Widely, the factors that can guarantee the safety of people intonation Financial security forex trading include usage from VPN/proxy server, antivirus softwarebackup data and complex password. That Survey showed that the application of mumultiple protection methods in forex trading trade platforms is common among users. The use of a Singular Protection method was perceived as extremely risky by respondents as apparently in the proportion that has only taken over the use from antivirus software and VPN/proxy server usage respectively during a trade session on a forex Platform,” it said.

Conclusion

As a trader, the rule of thumb is to take the time to understand as much as possible about online forex trading before committing to any investment. While the position of knowledge and deeper understanding of forex trading for traders cannot be overstated, it is very important to choose a credible trading platform. Most importantly, from the OctaFX research findings, traders need to avoid greed and know that there is no easy money in trading. Adhering to the security measures highlighted in the report will also go a long way in preventing losses from fraud.

The OctaFX report provides more in-depth information on staying protected when trading forex online. The full report is available for download at: https://octacdn.com/files/pdf/online_forex_trading_in_Nigeria.pdf

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