Forex (foreign currencies exchange) is a highly unregulated market with high opportunities for gains and low potential for losses. These two factors have attracted scammers from all parts of the world, with their high potential for gains and low regulation. These fraudsters use Forex as a lure to extort millions from unsuspecting traders. Let me give you an example to illustrate a Forex scam.
Google only takes a couple of minutes and I find several Forex scams in a flash. Let’s take this example: Google has shown the company’s ad spaces on the first page. The website says “Guaranteed 200% Monthly Interest”, Minimum Deposit: $5000 and Maximum Deposit: $999999. Investment Length is 30 days. Fast Withdrawals! For a beginner Forex trader, it sounds wonderful. It’s as easy as sending them money. I’ll soon make 200% per year!
Continue reading and you will notice that they use a lot more flowery language to explain how they trade. They speak of “security” for funds and “stability” in their company. You will find headlines like “Professionalism”, reliability, trust and my personal favourite “Process Ability” on the ‘About Us”. “Process Ability,” they say: “Correct prediction on reversal forex rates outflow through timely analysis of department, received news and their processing. Also, positions’ control during the technical and fundamental analyses. For a genuine Forex trader, it takes only 5 seconds to read this site. To the unwary person, though, this sounds like a real dream come true.
How does a Forex newbie avoid Forex frauds and find genuine Forex products?
First of all, the old saying goes, “If it sounds good enough to be true it probably is.” Forex is not a place where you can guarantee your returns. Forex can be extremely profitable but it isn’t easy. Do not believe Forex companies that include automated Forex systems.
Two. The company that presented the opportunity. The case that we just discussed is a good example of this. A quick glance at the company’s website registration will reveal inconsistencies. The company claims the website was launched in June, but it was registered in July. Their site registration also contains false business contact information.
Never lose control of the money you have. Forex trading is not a place where you can send money to any other broker than one that is fully licensed. You retain control over your Forex account and funds even if someone manages them for you.
Talk to people who are behind Forex opportunities. Many Forex opportunities exist that are legal. If an opportunity is legitimate, the company would be more than willing speak with you. Don’t invest in Forex products unless you have contact with the persons responsible.
What are the risks associated with Forex trading? Forex trading can be a risky business. If a company doesn’t acknowledge this, they will be misleading you. It doesn’t matter if you’re looking for a Forex managed trading account, an automated Forex trading program, Forex education or Forex trade signals. If they offer Forex trading, they must inform you about the risks.
Don’t let emotion take over. You can make 200% per year. That’s something that is very exciting. It is easy to lose sight of the truth when this excitement blinds you. They are so convinced that something is real, they can’t see the obvious.
Forex can be an investment opportunity. Forex trading is an excellent investment opportunity. Each day thousands of Forex traders make a decent living trading the Forex market. Be careful not to fall for Forex scams. Because they are. You can avoid becoming the next victim to a Forex scam by applying common sense and following the tips I’ve shared.