Beware of a typical Forex trading scam.
It’s easy for new forex traders and investors to fall victim to some forex scam. Scammers can think of just about anything. This can be, for example, software and digital books that “guarantee” a profit in the forex market, a ruthless trader who attacks the customer’s account to get their fees, false advertising of all kinds, and even fake websites that take your money and then disappear.
The nature of the forex market makes new investors particularly vulnerable to such scams, as the market fluctuates a lot, and the general public knows little about it. It is up to the investors to read up on forex trading, just as before embarking on any other form of investment they want to do well with. This also means that they should be aware of common scams. In 2001, the U.S. Commodity Futures Trading Commission (CFTC) issued nine tips that forex market investors should keep in mind when looking for a forex broker:
- Avoid opportunities that seem too good to be true
- Avoid companies that predict or guarantee large profits
- Avoid companies that promise little or no financial risk
- Be wary of trading on margin unless you are familiar with the subject
- Be wary of those who claim to trade in the “Interbank Market” because it is “safer.”
- Be careful about sending or transferring money online, by mail, or in other ways
- Hoaxers often target people belonging to ethnic minorities
- Check out the company’s experience and achievements
- People and companies that do not want to disclose their background are not worth taking a risk for
One of the most common methods is to sell a product or system online, which is “guaranteed” to create a profit in your forex trading. Be wary of online advertising for these products. All of these products contain information about forex trading that you might as well get into by reading another book. If you read the book, you will certainly get information about forex trading, but there is no secret or key to success.