Forex Trading Scams are every where, As every business run through internet has possibility of scams and so Forex Trading is also not left untouched from Scams. Forex market is the biggest trading market of the world. It has opportunities of everyone to earn money and so the opportunities are also there for the scammers. Advancement in technology has made growth easier for the Forex Scams and scammers can now target their victims more easily. Anyone if not alert of these scammers can fall prey to their tricks.
Medium used by the Scammers
Forex trading scams use newspapers, television and Internet to promote their scams. Internet is a very convenient medium for the Scam artists to play their tricks and cheat the traders and investors. Scam artists doing their business through mediums such as Internet can very easily hide themselves from the eyes of public and if scammed once it becomes almost impossible to get money back. The most common scams done in the Forex market are known by the name of HYIPs (High Yield Investment Programs).
How the Forex trading scams artists attract people
Scam artists run these programs through their website and advertise their website on other reputable websites. Forex trading scams artists may present themselves as Forex experts and provide other promotional information to attract more and more customers. The information presented by these scammers may be totally false. These Scammers may promise that if you register with them then you may enjoy unrealistic gains with in few days or months only. For example, if you see any offer saying, “Earn 300% gain on your total investment with in a month” or “Only 10 days left to triple your money, so don’t wait as only 10 days are left for this offer to expire”, then make it clear that this can be a Scam. The probability of such offers to be scam is more than 90%. You can see tons of these offers on internet.
Now the question arises is how to figure out clearly that an offer is a Scam or not. Below are the warning signs that will help the traders and investors to figure out if an offer is a Scam or not.
Promise of no risk or very little risk
If you see offers promising no risk or very little risk then stay away from such offers. The Forex market is very profitable only because high risk of money is there. In simple words, Risk is directly proportional to Reward so if Reward is higher then Risk will also be higher.
Guarantee of Profit
If you see any offer taking guarantee of earning profit every time then stay away. The best Forex traders and investors can also not guarantee to earn profit in any trading sessions. Price can anytime start moving against you. The true Forex experts and marketers will not guarantee anything because they have to stay in market and want long term clients. Only Scammers can guarantee your profit because they don’t need to stay and will never pay you anything.
Forex trading scams artists publish Employment advertisement in various media discussed above. Their advertisements say that they need employees for their Forex Trading and consulting business. Talk to these firms and if they ask to become a trainee first, then refuse their offer. The aim of such advertisements is only to get trainees and then motivate these trainees to become traders and do investment. The Scammers only want to get the money of these trainees by showing them a false picture of the actual currency trading. After they get your money, they will either show that your money is lost by showing you wrong calculations or they may run away with your money. So try to stay from these Scam artists.
Pretending to be NFA or CFTC member
The Forex Scammers may tell you that they are NFA or CFTC member to increase their users and get good investment but your responsibility is to check their membership. Don’t believe in their words but check yourself whether they are NFA or CFTC member or not.
So follow the suggestions and do not fall prey to these Scam artists. Invest with any Forex firm only after confirming their identity.