Forex (foreign money exchange) can be a very unregulated market. It has both high potential to gain and also high risk of loss. These two features, high potential of gain and soft regulation have attracted fraudsters from around the world. This is how scammers make millions off unsuspecting investors by using the lure of Forex. Let me first show you a recent Forex scam.
Google takes only minutes, and I quickly discover a few Forex frauds. This one is an example. The company has purchased Google advertising space and their site ranks on the first result page of my search. The website states that they offer “Guaranteed 200% Income Per Month”, Minimum Deposit $5000, Maximum Deposit $999,999, Investment Time: 30 Days, Fast Withdrawals!” It sounds amazing to the beginner Forex trader. I only have to send them my cash and I will soon be earning 200% per monthly – that’s amazing!
Continue reading to discover that they use a lot flowery terminology to explain HOW they trade. They talk about the “security of funds” and the “stability” of their company. They include headlines like: “Professionalism”, Trust”, Reliability, Trust and my personal favorite, “Process Ability”. Under “Process Ability,” they write: The scam is easy to detect for real Forex traders if you only spend 5 seconds on this site. The scam is obvious to anyone who has not heard of the immense potential in Forex.
So, how can the Forex novice avoid Forex scams while still finding real Forex products and services?
First, you should remember the old saying that “If it sounds too good, it probably IS.” Forex doesn’t offer any guarantees of returns. Forex can be very profitable but it’s not easy. It is also not easy to maintain a weekly consistent profit. You should be wary of Forex companies claiming automated Forex system.
Two. Look into the company that presents the opportunity. Just like the case we were discussing, a quick glance at the company registration can reveal some inconsistencies. The website was registered July 2012, although the company claimed that it was established in June. Additionally, the company provides false business contact details in its site registration.
Never surrender control over your money. Forex means that you don’t have to allow your money to be sent to anyone other than a licensed Forex broker. You have control over your Forex account, even if the broker manages your funds.
Talk to the people behind Forex. Many Forex opportunities have been verified. If the opportunity seems legitimate, they will be open to speaking with you. Contact the person responsible for any Forex product before you invest.
Does the company explain the risks associated trading Forex? Forex trading is a high-risk investment. You should not be misled if a company refuses acknowledge it. It doesn’t make a difference if you’re considering a Forex managed or automated account, Forex education, Forex signaling, or any other Forex product. If they propose something that has to do Forex, they must tell you what the risks are.
Don’t let emotions take control of your life. It’s exciting to be able to make 200% per months. This excitement can often lead to people becoming disconnected from the real world. They want to believe SO badly that something is truly real that they ignore the obvious.
Forex is an acceptable investment opportunity. Forex traders are making a good living by trading the Forex market every day. But don’t be fooled by Forex scams. They are. Be smart and use the tips above to avoid falling prey to Forex scams.