Frauds can happen in the forex market because it is such a lucrative field fxcm market. If you want to protect your hard earned money, you should know the top scams and how you can avoid them.
The CFTC, NFA and other regulatory agencies were established to protect consumers from fraud. Forex Trading Traps – Avoiding These 4 Top Forex Trading Frauds Articles The CFTC & NFA was established to protect public against fraud. Never make a check payable to someone other than a FCM who is registered with NFA.
1. Research is key: Before you make any investment, thoroughly research Forex trading. This includes any companies with whom you may want to trade forex. Be sure to verify any claims that a firm makes and confirm they are members of a reputable organization before dealing with them. Some people park their hard-earned funds with forex trading organizations, without doing any prior research. It is a gamble.
2. Stay away from Get-rich schemes that sound too good-to-be-true: They are often frauds. Forex trading is not an easy thing to master. You cannot expect to make consistent profits each time you trade. Remember that “free” lunches do not exist. To learn the basics of forex trading, you’ll need to put in some effort. Some large investors deposit a huge amount of money with these schemes, and never see that money again.
3. Avoid Forex Trading Companies that Guarantee Large Profits. Be wary of any forex trading company that guarantees large profits. There are no guarantees in currency trading. In many instances, these claims are false. To start, a forex ebook or trading guide will do.
4. A guarantee of zero-risk trading or minimal risk trading is a fraud. There are risks involved in forex trading, given that over 90% of traders lose. Currency markets are not the place for you to invest funds that cannot be lost. No one can know what the future will bring. Trading is either low or high risk, not no risk. If someone claims forex trading is completely risk-free, they are likely to be a scammer or a liar.
You will find my free book very useful if you are a newbie in forex. I have included a forex trading system that is completely free. The ebook also contains valuable stuff for advanced traders. Try not to get distracted by the claims of making a lot more money. Instead, learn and trade on your own.