How to Recognize Forex Scams
If you want to go into Forex trading, then you will have to be very careful about the people and organizations you choose to deal with. It is sad to say, but investor scams are quite prevalent in the world of Forex trading.
There are several reasons why the currency market is vulnerable to investor scams: the market is loosely regulated, it operates through over-the-counter transactions, the trading language is highly technical, and Forex does not have a central exchange.
The US Commodity Futures Trading Commission (CFTC) provides loose regulation of the foreign exchange market within the United States. On its website, the CFTC provides this helpful list of the warning signs of fraud:
1. Stay away from opportunities that seem too good to be true
2. Avoid any company that predicts or guarantees large profits
3. Stay Away From Companies That Promise Little or No Financial Risk
4. Don't Trade on Margin Unless You Understand What It Means
5. Question Firms That Claim To Trade in the "Interbank Market"
6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise
7. Currency Scams Often Target Members of Ethnic Minorities
8. Be Sure You Get the Company's Performance Track Record
9. Don't Deal With Anyone Who Won't Give You Their Background
These are very good pieces of advice that you would do well to keep in mind if you do not want to give your money away to a scammer.
You should be especially wary of Forex investment opportunities that are advertised on infomercials. They often lure investors by alluding to the delivery of high profits at minimum risk. That is exactly the kind of �too good to be true� formula that you should be suspicious about. How do they make their high profits with minimum risk? That�s a legitimate question, only they will not tell you, citing the need to keep their methods a secret for business survival. That sounds reasonable, doesn�t it? Except you should keep in mind that they just may be lying through their teeth.
Forex | Forex Trading
There are several reasons why the currency market is vulnerable to investor scams: the market is loosely regulated, it operates through over-the-counter transactions, the trading language is highly technical, and Forex does not have a central exchange.
The US Commodity Futures Trading Commission (CFTC) provides loose regulation of the foreign exchange market within the United States. On its website, the CFTC provides this helpful list of the warning signs of fraud:
1. Stay away from opportunities that seem too good to be true
2. Avoid any company that predicts or guarantees large profits
3. Stay Away From Companies That Promise Little or No Financial Risk
4. Don't Trade on Margin Unless You Understand What It Means
5. Question Firms That Claim To Trade in the "Interbank Market"
6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise
7. Currency Scams Often Target Members of Ethnic Minorities
8. Be Sure You Get the Company's Performance Track Record
9. Don't Deal With Anyone Who Won't Give You Their Background
These are very good pieces of advice that you would do well to keep in mind if you do not want to give your money away to a scammer.
You should be especially wary of Forex investment opportunities that are advertised on infomercials. They often lure investors by alluding to the delivery of high profits at minimum risk. That is exactly the kind of �too good to be true� formula that you should be suspicious about. How do they make their high profits with minimum risk? That�s a legitimate question, only they will not tell you, citing the need to keep their methods a secret for business survival. That sounds reasonable, doesn�t it? Except you should keep in mind that they just may be lying through their teeth.
Forex | Forex Trading
posted by Alex Joslyn at 10:44 AM
0 Comments:
Post a Comment
<< Home