Last update 2020.11.18
The term fake news has gained the pages of newspapers and the internet in recent years. However, not everyone is sure what fake news means. The term comes from the English fake (false) and news. Despite having recently stood out, the expression is much older and dates from the end of the 19th century. Fake News is the false information that goes viral among the population as if it were true.
Currently, they are mainly related to social networks. In the financial market, fake news is also present. Let’s talk about it focused on the forex market. 👇🏻
💡Curiosity: The word(s) of the year, sometimes capitalized as “Word(s) of the Year” and abbreviated “WOTY” (or “WotY“), refers to any of various assessments as to the most important word(s) or expression(s) in the public sphere during a specific year. In 2017, fake news (disinformation or falsehoods presented as real news or actual news that is claimed to be untrue) was the most referenced word.
What does Fake News mean?🤔
The internet makes it possible for news to spread at an ever-faster rate. And social networks have further accelerated this process. However, the space is also conducive for false news to be easily disseminated. Also, another important factor is that people have lost the habit of checking the sources of data, especially when we talk about the forex market, where many news about how to invest easily and quickly are so immensely spread.
When something is published in and about the forex market, there are automatically hundreds of shares without even getting to where that news came from.
The election period, both in the United States and in Brazil, has raised the debate about the danger of fake news. Lately, a kind of war has been created between those involved in the electoral process to overthrow opposing candidates with the dissemination of spoken news on the internet. Scandals of creating departments specializing in the creation and spread of untrue information have made headlines around the world.
How are fake news created? 🤔
There are different ways to create fake news. From a simple publication on social networks to companies that specialize in making false information viral. Goals also vary and may be intended to attract views to pages on social media or even to spread hatred against people, institutions, companies, governments, etc. Specialized companies are present in the so-called deep web, a more restricted and hidden part from the general public, as it does not appear in search engines.
In general, a website is created and a robot responsible for spreading the fake news link on different networks, in a very dull way. The information can be replicated even every two seconds by the robots. This is how rumors take on unimaginable proportions.
How to Fight Fake News?🥊
The legislation of a country still does not specifically deal with the creation and sharing of false news. Lawyers have been looking for ways to deal with fake news. In general, professionals follow what is provided for in the Penal Code for cases of slander, injury, and defamation.
🆘 In addition to legislation, it is essential to have policies to raise public awareness of the danger of replicating false information. Each citizen must also make a commitment to verify the facts before sharing them on the network and even believing in everything that circulates on social networks.
According to the Commodity Futures Trading Commission, to avoid scammers and fight against fake news, “Before you sign up, take some time to research the platform or service. The decision to trade should be a thoughtful process that sheds plenty of daylight on the players with whom you invest”.
How to identify Forex Fraud? 🧐
The forex market is one of the largest and most active financial markets in the world – bigger than the Stock Exchange. To start investing everything you need, choose a broker, deposit money, and trade the currency pairs EUR / USD, EUR / JPY, GBP / USD, among other pairs.
Although there are countlessly regulated and legal forex brokers, which have to comply with important rules, even so, there are still malicious people interested in circumventing people without experience in forex, who promise that you will go 2%, 5%, or more per day, without risk. THIS IS IMPOSSIBLE!! This is one of the reasons why you should check the news and information about a particular website before accessing it or making any deals on that platform.
What is a scam? 🤥
A scam or fraud is an intentional way to deceive you so that you invest money by believing in the promise of quick and easy earnings. Scams in this industry are not uncommon nowadays, as they take advantage of the advantages and “brilliance” of the forex financial market to promise impossible things and receive money from victims.
HYIPs are a fraud. Some masquerade as forex and promise abnormal earnings if they invest money, but as soon as new “investors” cease to enter, they close the website and flee with the money, injuring thousands of people.
What is a financial pyramid? Is it a crime?💰
The practice of the financial pyramid is prohibited in Brazil and constitutes a crime against the popular economy (Law 1.521 / 51). With promises of expressive returns in a short time, financial pyramid schemes are considered illegal because they are only advantageous while attracting new investors.
As soon as investors stop entering, the scheme cannot cover the promised returns and collapse. 🗣️
Also according to the Commodity Futures Trading Commission, “While some web platforms offer legitimate futures and futures options trades, others operate illegally. By law, firms that offer trades of futures or options on futures to U.S. residents must be registered with the Commodity Futures Trading Commission (CFTC). Check to verify that the company or person you’re about to give your credit card to is properly registered and in good standing”.
How to identify a financial pyramid? ❌
Some common features are:
- The promise of easy earning, exorbitant profit, guaranteed return
- The promise of extra earnings when referring to new customers
- Lack of information about the product offered
- Lack of basic information about the company responsible for taking care of the money and its owners.
Retired people versus fake news 👨🏽🦳👩🏻🦳
The coronavirus pandemic forced the elderly and retirees to fulfill social isolation and stay at home. Members of the so-called “risk group”, the elderly and retirees found themselves in the need to use digital media to manage their lives and solve their financial problems, mainly payments, transfers, and purchases.
With the increased use of the internet to carry out daily activities and digital transactions during the pandemic, criminals take advantage of the longer online time of the elderly and others to apply scams. An American survey reveals that in the quarantine there was a 60% increase in financial scams against the elderly and retirees.
🏪 There are also the scams of the transfer and sale of a property and real estate and the capture of payroll loans, both induced and carried out by close family members.
See below the main guidelines and tips to avoid losses when trading forex:
– The forex broker never calls the customer asking for a password or card number;
– The forex broker will never send someone to the customer’s house to collect the card;
– The forex broker never calls to ask to make a transfer or any type of payment;
– When receiving a call saying that the card has been cloned, the customer must hang up, pick up the phone number on the card, and call from another phone to clear up this story;
– Did you receive an SMS or e-mail from the forex broker with a link? Delete and call your manager;
– Never give your password and personal data to anyone.
Conclusion: how to escape fake news in the Forex Market 🏃🏿
How fake news can affect your investments Due to so many governmental measures including, to combat this false information, one can observe the proportion that they took and the capacity of damage that they can cause. The financial or forex market is no different.
A rumor about a government, a new government measure, a currency, or even a financial institution. All of this can cause a big stir in the world of finance and the forex market.
For the fake news not to make you lose money as an investor, or as an economic agent, some tips can be followed. The first of all is not to go out sharing information from an untrusted source, which as a result you are not sure of the truth.
Not that a source of credibility is exempt from making mistakes. But the chance that you will find fake news in a traditional media outlet and, above all, fabricated news, will be minimal. So, have a critical sense to analyze if what you read looks really real.
So that the unreal news does not cause any damage to your finances, try to check the facts before making your investments. Also, don’t believe the first thing you read without going to the official source of that information. The important thing is to be cautious, try to stay informed, and have a critical sense both for the news and for its applications.
You can help protect yourself and others. If you see a suspicious trading platform promoted on social media, contact the
If you suspect a trading platform is operating illegally or perpetrating fraud, contact a forex regulator and check the seriousness and reliability of the broker in question:
- The European Financial Markets Authority (ESMA)
- Financial Conduct Authority (FCA)
- The Commodity Futures Trading Commission (CFTC)
- The National Futures Association (NFA)
- Investment Industry Regulatory Organization of Canada (IIROC)
- Australian Securities and Investments Commission (ASIC)
- Financial Services Conduct Authority (FSCA)
How to invest with AI from home
You can invest with AI in forex while performing your personal activities at home or wherever you are and save time. It is simple, safe, and free.
Check out the 3 steps to trade automated with Wiseinvest’s automated AI trading system.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Benefits of Automated AI trading
- Try for free.
- Setup in 3 minutes.
- Totally hands-free, from anywhere.
- Invest from just $1.
- APY of 43% over the past 10 years*.
- Capital protected under the brokers
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the brokers Oanda and FXCM. Click here to open an account with FXCM or here to open with Oanda. Those are some of the best forex brokers in the world.
What does happen after linking a broker account with AI trading?
- The AI will automatically invest on average every 12 hours in your account.
- There will be up to 60 trades per month (Monday – Friday).
- You can enable and disable AI whenever you want.
- Check your trades on our dashboard or the brokerage.
- You can link more than one broker at the same time.
- You don’t need MT4 / MT5. It’s all on our dashboard.
- Your capital is protected under the broker.
- Your personal data is protected by us.
Would you like to try our automated AI trading for free in a risk-free demo account? Get started free here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI forex signals or AI trading from just $1 through some of the best forex brokers. It is moreover possible to test using a risk-free demo account with our AI trading structure. Regardless, to do a capable peril, the board in authentic records, we suggest you start from at least $100.
What is the best forex broker to use AI trading?
- Where are you from? For example, Oanda accepts US accounts, but FXCM does not. On the other hand, FXCM accepts accounts from some countries where Oanda does not.
- How much do you have? With Oanda, you can start at $1, and FXCM is ideal if you start from at least $300.
- FXCM sometimes provides higher liquidity volume and lower spreads than Oanda, which are vital aspects of the success in forex trading. But it can also vary.
Why trust Wiseinvest instead of other trading platforms
These are the main reasons why forex traders at all levels trust us, rather than other trading solutions.
- Our automated AI trading is efficient, simple, safe, and affordable. You do not need MT4 or other complicated platforms to trade forex.
- We are a legitimate and reliable company with extensive experience in finance. We combine 19 years of trading experience and extensive academic research in the financial markets.
- Our AI outperformed the investment market with an average annual return of 43% over the past 10 years (2011-2020).
- The automated AI trading works with some of the best forex brokers.
- When using our AI solutions, all your money is protected by brokerage firms.
- We do not have access to withdrawals from our customers’ accounts.
- All of your data is encrypted and will never be shared.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.