Hello Fellow Traders! You're very fortunate that you've landed on this legitimate and helpful website. In this article, we will attempt to discover how to spot Forex scams and protect ourselves from their devious actions. We will discuss some of the issues, and then identify their common motives and traps.
First of all, it's good to know that you've made up your mind to get into forex market, the world's largest financial market, and a place that provides abundant opportunities to make money. Forex is a marketplace where buyers and seller of worldwide currencies meet at the same time, although not at the same place. They trade in the market everyday from Monday to Friday, 24 hours a day.
Without a doubt, the market can be very lucrative, promising and engaging. With such easily available money making opportunities in Forex, it surely attracts more people to jump into the Forex Battleground. Many people enter the market with big dreams of being a winner in the market. Unfortunately, most of them forget that risk always come along with every opportunity.
Because of their burning desire to succeed, they neglect the importance of being a well-informed investor with an arsenal of intelligent trading weapons.
They trade money they can't afford to lose, get too excited with small and occasional profit, and too emotional when suffering a loss.
At times, they even damage themselves greatly by ignoring a huge loss until it grows to the point that it wipes out their entire account.
In the eye of some unscrupulous people, the scam artists, the uneducated investor and novice trader are big money. Hence Forex scam artists have flooded the market, offering various bombastic products and services, ranging from "instructional" Ebooks, so-called trading robots, trading signals, free training, trading awards and so on.
Their Ebooks don't give you precious information on market analysis and trading. It only contains general info which you can get for free on the internet. Their trading robots or automated trading programs are selling at average $200 each, with huge promise from the scammy vendors: "Win 95% of all trades - Generate $100,000 per month" Do they think it's so easy to be a winner in forex market? If their robots can generate huge amount of money consistently why they sell the robots with relatively cheap price?
Some of Forex scams also offer cheap trading signal, claiming their signals are the best. The bad side is they never give us the track record of their signals accuracy. After a certain amount of time, you'll know why they don't publish their signals - it's because the accuracy is so low and if you follow the signals, you will be unprofitable.
Some scammy online brokers also lurk in the internet market enticing want to-be and inexperienced investors with low spread, free commission trading and free Forex training. Then soon after they have sufficient number of clients, they disappear without any warning, taking all the proceeds and deposits with them.
So wake up, friends! Be ready for those Forex scam artists' attack! You have to protect your money from these thieves. You need to know how to spot Forex scams. Here is the list of some things you should remember when you come across any suspicious Forex website:
1. When something sounds too good to be true, the odd are that it's not true. Traders play the odds and probabilities. Don't start off your trading career with a bad "trade".
2. Don't fall into the over-hyped presentations of affiliate sales pages and "user's" testimonials. These people are willing to lie to their own mothers to make a sale.
3. Make sure you only buy what you need. Trading does not have to be complicated, and continuing to look for the "next big thing" will always get you into trouble. Stop searching and focus on a good, quality education. It will help you to control yourself and avoid the predatory scam artists.
4. Use your common sense, don't expect a quality product with cheap price, although there are exceptions to this rule. On the other hand, you have to be sure you'll get your money's worth.
5. When there is no clear contact person and business address, please place more caution on them.
6. Go to reliable trader forums, review websites and blogs if you are not sure on a product or service.
And even though you're here and now know how to spot forex scams and avoid them, you certainly still need to acquire more knowledge and information to be successful as a Forex trader. We suggest you try to find the highest quality education possible, but be careful not to pay too much.