Forex Scams
Forex is the largest financial market with huge profit potentials. But you would notice that the scams involving forex trading is also very common. The first and foremost thing for you to remember is there is no magic wand that would make you a billionaire overnight. CFTC or Commodities Futures Trading Commission noticed an increase in number of forex-related scam for past few years. They have an extensive website that is full of useful tips on how to keep yourself away from such scams.
The first and most practical step would be to make yourself aware of the basics of the forex market, so that you know there are no “get rich quick” options in forex. This learning is a continuous process and even when you establish yourself as a seasoned forex trader, the process should not stop.
You must also learn how to identify forex frauds and scam. The first step would be to do business with a firm registered with CFTC, so that the agency can investigate and prosecute firms or their affiliates engaged in forex frauds.
Two most common types of forex frauds are performed either by unregulated firms offering or selling foreign currency futures or options contracts to the public or by registered firms and their affiliates.
CFTC also warns forex traders against “opportunities that sound too good to be true”. If you have received a large amount from some source and now looking for a safe investment method, take extra care to stay out of the forex fraudsters.
The broker or a system that guarantees high profits or claim of sure winning trades are false in most of the cases. Such unrealistic claims are the first step to lure you into the trap. As long as you fully understand the concept, don’t trade on margins. Take extra care while trading online, especially during transferring funds online.
July 18th, 2008 at 6:19 am
[...] Original post by Forex Recipe [...]
July 18th, 2008 at 7:00 am
[...] Original post by Forex Recipe [...]
July 18th, 2008 at 7:10 am
[...] Original post by Forex Recipe [...]