If you’ve been trading for years now, you’re probably wondering why there are only ever a few people who survive the trade for years. Some have gotten used to the pressure and have made huge amounts of profit because of forex trading. Others are not that successful, but have managed to hold on. However, there is a staggering number of people who failed in the forex industry because either they weren’t taught how to do forex marketing the right way or they’ve fallen in a bottomless pit called forex trading scams.
If you’ve taken the time to do some research about forex trading scams, you’ll probably end up with a long list of search results and it’ll take you a day or two just reading through the experiences. If you’re new in the forex trading game and you want to avoid getting scammed, then there’s only one thing to do; you need to learn about the common forex trading scams and how to avoid them (tips on how to avoid being scammed were taking from these guys :) ForexCT – Forex trading broker.
In order to avoid a scam, you need to be able to detect the scam. Here are some of the most common traits of forex trading scams that you’ll probably encounter as you deal with the forex market and other forex traders:
Any offers or a “business” opportunity that sounds impossible or too good to be true – You’ll most likely encounter these on the Internet or while talking with different forex traders. The promise of a “getting rich overnight” scheme should be an early warning signal already for the experienced forex trader. Unfortunately, even the most experienced trader would gamble his/her money away once greed takes over. Just think about it; if it does make your rich overnight, why would you share this knowledge with someone else for profit?
Any offer that claims impossible high profits at the end of the week or month – Again, if it sounds too good to be true, then it’s most likely a scam.
I’ve seen obvious forex trading scams that promised a ROI or return of investment of over 40 to 50 percent within a week or month; that alone convinced me that it was an honest to goodness forex trading scam. I managed to warn a few friends of mine who were Australian forex trading broker themselves. It was a good thing I did, because the guy who promoted the scam suddenly disappeared a week later.
You can just imagine the faces of those he managed to convince.
Any forex trading system that uses an interbank market – Most forex trading scams use or deal with interbank markets. Interbank markets make use of speculative or short-term currency deals and these transactions are usually dealt in dubious networks of banks and companies. The term “dubious” should definitely be a warning sign already. Most scammers love showing off how prestigious the bank or company that you’re going to invest your money in, but the moment you realize that you’ll be investing your hard-earned money in a system where you don’t know where it’s going, then you should definitely back away immediately.