Beware of forex trading scam

scheng1 By scheng1, 12th Jun 2010 | Follow this author | RSS Feed
Posted in Wikinut>Money>Forex Trading

It is hard enough to make money from forex trading even without the existence of forex scam.

The best way to check out forex scam is by checking out the website of the Federal Trade Commission. The second best way to check forex scam is the online discussion forums.

Beware of forex trading scam

Why so many forex scams?

Many forex scams appear in forex trading to cheat the newbies to forex trading. These companies and cheaters set up website to take advantage of newbies who want to get rich, yet do not want to learn the fundamental of forex trading. These newbies may not even know that forex trading must go through a licensed broker or a forex trading company.

If you consider the huge amount of transactions in forex market, you can see why many unethical people want to cheat you of your money.

The forex market will not simply disappear since the world needs to trade currencies in order to survive. Just think from the consumers who go holiday in another country. He needs to change his local currency for the foreign currency. That is the basic of forex trading.

However, if you have the mindset of making big bucks out of forex trading, you are the target of those cheaters. Those forex scams always promise easy money without hard work.

Even small businesses and educated people fall victims to forex scams. They desire to make big bucks, and do not want to spend the time and effort to learn forex trading.

Some forex scams promise that you will gain returns just by signing up to use the forex robot.

If you do not go through a broker, you are not participating in forex trading at all.

Check the applicable law for forex trading company

Beware of forex trading scam. You must check that the company offering forex trading service is permitted in your country.

You can check with the regulator in your country. At the very least, make sure that the company is legitimate in the home country. Check carefully to see the registration of the company, and the applicable law of the country.

Forex robot scam

Forex robot scam is another type of scam.

You need to test out the forex robot and check the effectiveness of the forex robot.

You do not want a forex robot or forex software that hangs at critical period.

Some forex robots do not perform up to expectations. The worst is that the owner refuses to give you refund when you seek refund during the guarantee period.

The best is to sign up for many different forex robots that offer free account. Check the reputation before you buy the service.

Learn forex trading to avoid scams

You need to learn forex trading to protect yourself. If you know the fundamentals of forex trading, and the technical analysis for forex trading, nobody can scam you.

Do not fall victim to those scams that promise big money and easy money. There is no such thing as making big money without a single ounce of effort.

About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Personal Finance is about money, from making money to investing money

Tags

Forex Trading, Forex Trading Scam

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author avatar scheng1
About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. [link=http://howhealthyisyourpersonalfina...(more)

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Comments

author avatar Anuradha Ramkumar
13th Jun 2010 (#)

Thnx for this wonderful article. Gr8 eye-opener.

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author avatar yugasini
3rd Oct 2012 (#)

Hi Scheng,

Thanks for one more article on Forex trading scams and Robot scams. I am eager to contact you over mail or mylot about forex trading, have a nice day.

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