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How to recognize Forex fraud

While the popularity of Forex market grows, the amount of swindlers increase. As Forex includes the international currency exchange, there emerged new types of fraud. In a twist of fate, many of these swindlers places their advertising in newspapers, television or in other media outlets.

Professional traders usually distinguish such crooks with ease, but beginners really suffer because they can't clarify what is real and what is fraud. It is extremely important to study carefully Forex trading and activity of the company with which you want to work and to invest your own means. You need to find out that the company in which you invested is not suspected in fraud. In such circumstances often is impossible to get the refund anymore as the quantity of claims from all victims of swindlers will be more than the government can satisfy.

One of the signs of Forex scam is when the company guarantees no risk. The fact is that Forex trading always means risk and if someone declares that there is no risk, he is a liar, or more likely a swindler. Successful trading on Forex demands knowledge, discipline, and good trading strategy. The magic software or a risk-free way of earning money doesn't exist.

One more suspicious sign is when a Forex broker guarantees profit. Nobody can guarantee profits in Forex trading. It depends on your work as the investor. If it was possible to guarantee profits in Forex trading, nobody would start the business showing the rest how to get guaranteed profit. The potential profits of those who could guarantee profit, would be so high that they quickly would become billionaires. So why should they spend their time training others?

One more widespread tactic of Forex swindlers is promising of employment for the people, using their trading system. It is a common trick to make you spend your money. They entice people with the capital who can organize the business. They usually promise to provide funds to the firm to people who will use their trading system. Why do they act in this way? Instead, they entice people into the training systems and convince them that they achieved such success in the training process that they should already start trading in the real money to earn a state.

All serious Forex sites are registered in the CFTC or the NFA. Be sure to check all statements and documents of the company and that it is the member of one of these organizations before starting a business with it.

Remember that Forex is a rather unregulated system of currency exchange. Swindlers can apply hi-tech means, involve the brokers manipulating the prices in such a way that the average trader won't be able to trace them. Thus, it is important not to become the target of such brokers.

So, may good success attend you! Good luck!



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Number of comments: 2
  • Sharon
    • #

    I'm so afraid to get on the scam broker. That is why I verify all broker's activity very intensively. I don't want to be fooled or to lose all my funds.

  • Moneylover
    • #

    I fully agree that adequate and trustworthy broker cannot guarantee a profit! It is impossible! Traders especially beginners have to verify everything very thoroughly.


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