Tag Archives: frauds

Avoiding Forex Related Frauds And Scams

In the last decade we have all seen the progress and the worth of the forex trading. It has really evolved into the different option of investment means for the forex trading and for many of the individual investors. But like any other financial organizations and institutions, the forex market too has faced a lot of frauds and scams. Over the years a lot of individual traders have lost their money in these scams through the internet. The websites would look as perfect and genuine that many people get attracted to these without any investigation and research. The beginners do not look at all the details and particulars of the business and they start the trading activities. Beware of all these. You need to evaluate all the information about the products and the brokers as some of them might be offering too much which may seem unreal and illogical. In all the financial markets, profits and losses go hand in hand.

The first thing the people should look out for is the geographic location of the trade forex market as from where it is operating. It is very important because some of the countries do not have proper trading laws and in some they do not allow for such types of trading. That is quite terrible for all the honest traders and the brokers of those countries. It is your duty and the responsibility to protect the capital and the money. If you are unable to do that then you are not eligible enough of trading. At present there are lots of brokers of the countries such as Australia, United States and the UK based brokers. The British brokers are considered the best in the financial business and you can rely upon them.

You can also go for the companies which are operating from Japan, France and Germany but you have to look out for the language option there as these are not English speaking countries. You also need to watch out for the license numbers which have been listed with the government regulatory bodies which keeps an eye on all the financial activities of the forex markets and industries. They impose some laws that the money should be kept with the reliable and reputable banks. Also look out for the fake companies from time to time so that you never fall victim of these at any point of time.

Forex Trading Traps – How You Can Avoid These 4 Top Frauds in Forex Trading

Forex brokers should be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC) and a NFA member. The CFTC and NFA were made to protect the public against fraud, manipulation, and abusive trade practices. Never make a check or bank wire payable to anyone other that a FCM registered with the NFA.

1. Doing Research: It is most important to thoroughly research Forex trading, and any companies you may be thinking of trading forex with, before making any kind of investments. Be sure to check out any claims made by a company, and make sure they are indeed members of one of these organizations, before even thinking of dealing with them. Some people just park their hard-earned cash with some forex trading organizations without first doing research on that company. It is a risk.

2. Stay Away From Promises That Sound Too Good to Be True: Those Get-rich-quick schemes, including those involving forex trading, tend to be frauds. There is no easy way of learning how to trade forex and earn consistent profits everytime. Always remember that there is no such thing as a “free lunch.”, you will really need to spend some time to learn forex basics. Some big investors invest with a large amount of funds, which are never to be seen again if deposited with those schemes.

3. Avoid Any Forex Company that Assures You Large Profits: Be extremely wary of those forex trading companies that guarantee profits. Nobody can offer sure guarantees where currency trading is concerned. In many cases, those claims are false. Learn to trade forex by yourself with a forex trading guide or ebook will be good enough, then slowly make your way up. The following are examples of statements that are most likely are fraudulent:

“Guaranteed to make a ROI of 40-50% within few days.”
“You will reach a million dollars fast in forex trading.”
“Make $5000 in forex trading every week!”
“You don’t have to learn how to trade forex, it’s all automated.”
“You will never lose again in forex trading.”

4. Avoid promises with little or zero risk trading: The guarantee of risk-free forex trading is another fraudulent claim. The fact that more than 90% of people failed in forex trading means there are risks in losing. the currency market is not the place to put any funds that you cannot afford to lose. No can will know how the markets will be performing in the future. Therefore, it’s either low risk or high risk trading, and NOT NO risk! Anyone who suggests that forex trading is risk-free is likely to be a liar or fraudster.

For those new in forex trading, you will find the contents in my free ebook very useful as there is free forex trading system for you. And for advanced traders, you will also find value added stuffs inside the ebook, so try not to be attracted to those claims which can make you a lot of money, learning and trading by yourself is the best.