Forex (foreign exchange of currency) is a market that is relatively unregulated with both high potential gains and high potential losses. These two factors, soft regulation and high potential to gain, have drawn swindlers all over the globe. To steal millions from investors, these scammers exploit the lure of Forex. Let me show you an example of a Forex scam.
Google takes only a few seconds and I am able to quickly locate a few Forex scams. Here’s an example: This company purchased Google ad space. Their site appears on the first pages of my search. Website reads: “Guaranteed 200% Incentives per Month”, Minimum Deposit: $5000; Maximum Deposit: $999.999; Investment Length: 30 Days; Fast Withdrawals!” This website sounds amazing to novice Forex traders. I just need to send them my money, and soon I will be making 200% per months – WOW!
You will see that they use lots of fancy language to explain how they trade. They talk about “security”, “stability”, and funds. The headlines on their ‘About Us page include “Professionalism”, ‘Reliability”, and “Trust”, my personal favorite, “Process Ability”. “Process Ability” is the heading they use to write: “Correct prediction for reversal exchange rates outflow using timely analysis our department, received and their processing, as well as positions’ control during technical analysis and fundamental analysis. Real Forex traders will be able to spot the fraud in 5 seconds. For the unaware, however, the scam sounds almost like a pipe dream.
How does a Forex beginner avoid Forex scams and get real Forex products?
First of all, keep in mind the expression “If it seems too good to be real, it probably will.” Forex has no guaranteed returns. Even if it does, there is no guarantee that you will earn 200% every month. Forex can be extremely profitable, but it’s not easy. Also, there’s rarely a consistent weekly return. Don’t believe any Forex company that claims to offer automated Forex systems.
Two. Two. Research the company offering the opportunity. It takes just a few seconds to look at the company website registration and see the inconsistencies. Although the website was registered in July this year, the company claims it was founded in June. In their site registration, they also include false contact information.
You should never lose control of your money. Forex brokers are fully licensed and should not have access to your money. If you choose to have funds managed for you by another person, you can still control your money and your Forex account.
You can speak to the people behind Forex. Many Forex opportunities are legitimate. If the opportunity is genuine, the company will be happy to speak with you. You should never invest in Forex products without contacting the people who are responsible.
Do they disclose the risks of trading Forex? Forex is a risky investment. If a company denies this, they may be misleading you. It doesn’t really matter if the company is offering a Forex managed account, an automatic Forex trading system, Forex educational, Forex trade signals or any other Forex product. If they offer something related to Forex, they must disclose to you the potential risks involved in trading Forex.
Don’t allow emotions to get the better of you. The possibility of earning 200% per monthly is thrilling. Sometimes, this excitement can blind people to the reality. They desire to believe so strongly that something is true that they forget the obvious.
Forex is an excellent investment opportunity. Forex trading is a lucrative business opportunity. Everyday thousands of Forex traders make a substantial living trading the Forex markets. Do not fall for Forex scams that appear too good to budge. Because they are. Avoid falling for the Forex scams by using common sense and the advice I’ve given.