How to spot Forex Frauds
Nowadays, Forex trading is a popular platform where you can invest your money and gain a reasonable profit from the financial markets. And with the increase of popularity of forex trading, the number of forex frauds are growing day by day. Since Forex involves trading money worldwide, a whole new breed of scams have come out to grab money from the trade lovers. In fact, many of these scam brokers are finding their marks through online media advertisements by affiliate marketers.
However, these scams are easily spotted by experienced traders, but new traders may have problems knowing the difference between what is real and what is fake or scam. It is very essential to thoroughly research about forex companies you may trade with before making an initial investment. Lastly, you need to find out the company that you want to invest and research if it under investigation by the SEC for fraud.
One simple way to spot a scam on Forex is when someone promoting a Forex system that guarantees no risk. We all know and if you don’t know then believe it first that, there is risk with Forex trading and generally anyone who claims no risk is a liar or more likely a criminal. In fact, trading in Forex successfully requires knowledge about markets and assets, managements and discipline, and of course a trading strategy that works. And you need to be aware that, there is no magic software or no risk free way to assure that you will make money.
Another common facts of Forex frauds is to promise employment opportunities for people using their scam system. Generally, this is a trick to get you to spend your money with them and make them profitable. Not only that, they also promise to offer trial money to people using their system. Instead, what happens is that, they scam people into their training systems and convince people that, they have done so well in the training session and they should start using their real money in order to make a real fortune.
Be aware that, all reputable Forex trading web sites or companies will be a member of the CFTC or the NFA. So, make it sure to check the company’s claims out and assure that they are the members of one of these organizations before making any deal with them.
It is must to keep in mind that, Forex Trading is a relatively unregulated system of exchanging money or other supported assets online. However, in many cases Forex scams can become highly technical (For Example: Brokers manipulating prices in ways that cannot be tracked by the average trader). Because of this tricky technical involvement, it is essential for you to mark these types of brokers.
In the US, the CFTC is the federal agency which is responsible for regulating the trade of Forex currency. And if you suspect that you have been a victim of some type of fraud or you have suffer from any kind of scams, contact the CFTC and case a file against them. They have jurisdiction for investigating and enforcing the laws for Forex Trading Scams.