With the explosion of forex traders on social media over the last few months, it begs the question – are all of these forex traders legit? Can you actually make a living trading forex from a laptop in the Bahamas?
The short answer is no. Most forex traders you see on Instagram are scammers, making money from selling courses and not from actually trading forex. They’re nothing more than marketers, selling a dream.
Forex Traders On Instagram – The Scam
If you’ve ever followed a forex trader on Instagram, you can’t even scroll the app now without being bombarded by ‘traders’ flaunting their wealth with exotic cars, watches, stacks of cash and luxury holidays.
This is nothing more than marketing. This luxury lifestyle peaks the interest of newbie traders, thus pushing them to search more in depth in order to learn how they can become rich themselves and usually they end up purchasing mentorship or courses.
Unfortunately, these traders are scammers looking for money from selling courses, not from actually trading forex.
You may know the following terms: ‘fake it till you make it’, ‘look successful on social media and you’ll be successful’ and ‘the rich get richer.’
This is exactly what these forex scammers on Instagram do. They want to show that they’re rich, but they don’t actually make any money from trading; instead their whole income comes from selling courses or even worse, ‘account management’ where they will manage your trading funds and just run the account into the ground.
How To Tell If A Forex Trader On Instagram Is Actually Legit?
Firstly, it’s important to mention that most of the profitable forex traders are not posting their lives on Instagram. Those that do post their lives on Instagram are most likely trying to do some kind of marketing, rather than just trading. Sometimes you may see a picture of them with stacks of cash and a luxury car, but there has to be a trade in the background showing an open position.
Legit forex traders will either be not on Instagram, or barely posting content on Instagram.
Secondly, if they offer any kind of mentorship or courses, or if it sounds too good to be true, this is a scam.
In general, I recommend finding a forex trader from their trading track record and if they have been profitable for at least 5+ years, then you can consider following them. It’s important to note most people become profitable after 3-5 years of trading so if someone just pops up in the industry and has wealth overnight, this is highly unlikely to be legit.
There is no harm in purchasing trading courses or mentorship from traders but you need to be sure that they are a profitable trader. How could you learn Spanish from someone that cannot speak Spanish, right?
Lastly, if the trader is trying to manage accounts for people on Instagram – this is a huge red flag. This comes in the form of either selling signals, or actual account management. If you’re a consistently profitable trader, you can be trading hundreds of thousands of dollars of investor capital overnight. Legit traders have no interest in trading a $1000 account from someone on Instagram.
Professional traders making consistent returns also don’t sell signals. They’re aware that they aren’t licensed to give financial advice, nor is it worth their time.
Staying Safe From Scam Instagram Traders
There are a few key rules to bare in mind when trying to stay safe from these scam traders on Instagram.
- Don’t trust someone flaunting their wealth.
- See a MyFxBook track record before paying for mentorship.
- Don’t let anyone manage your account.
- Don’t invest in any Instagram forex traders.
These are the most important ways to avoid falling victim to these Instagram forex scammers.
To be completely safe, the best thing you can do is not use social media at all when trying to learn about trading; instead, read books and join a community of traders. This way someone else will confirm whether the information they are giving out is legit or not. If it sounds too good to be true, it usually is.
In Summary – Forex Traders On Instagram Are Scammers
In conclusion, the large majority of forex traders on Instagram are not trading for a living. They are making money off selling courses to new traders. If you’re looking for legitimate ways of learning about forex trading, stick to the free resources like Babypips, or even look at some of the best educational courses.
Have you ever fallen victim to an Instagram forex trader?