How to avoid being the next scam victim in online forex trade

There has been a surge in online forex trading locally as investors look for new income streams, as well as a means of diversifying their investments.

The platforms give investors easy access to global markets. Investors can conduct online forex trading as a side hustle to complement their jobs with the only requirement being a stable internet connection.

However, the popularity of online forex trading has come with heightened risks of fraud. There has been a proliferation of unlicensed brokers in these online spaces duping gullible investors and traders.

Before you part with your hard-earned money, it is important to satisfy yourself that you are dealing with a legitimate and licensed broker to avoid becoming a victim of scammers.

The first step, before undertaking any transaction, is to do due diligence and confirm the authenticity of the company offering online forex trading. It is simply not enough to accept the claims of a broker. A trader should ask for proof of their legitimacy.

Legal redress

It is advisable to only deal with brokers licensed by the Capital Markets Authority (CMA) because, in case of wrongful practices, an investor has legal redress through the CMA. If a trader is not licensed by the CMA, this is the first red flag.

Licences for online trading brokers are issued according to the Capital Markets Act, Cap 485A, and the Capital Markets…