Avoid Forex Currency Trading Scams
Forex trading swindlers often attract customers through advertisements in local newspapers, radio promotions or attractive Internet sites. These particular advertisements may flaunt low-risk high-return investment opportunities in foreign currency trading.
They may even offer high paid currency-trading employment opportunities. Be very sceptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks.
Be wary if they claim that employment as a Forex trader will make you wealthy quickly.
Avoid opportunities that sound too good to be true. Forex trading that involves get rich quick schemes are generally swindles. Retired folks with access to their retirement funds are attractive targets for fraudsters.
Once your money is gone, it is almost impossible to get it back. Be very careful of companies that will guarantee you a profit. Be careful as well, if they flaunt extremely high performance. These types of statements are generally false.
If the company tells you that written risk, disclosure statements are routine formalities imposed by the government, stay away from that company! Forex trading is very volatile and can be a huge risk for the uneducated and uninformed.
If you cannot afford to lose money then do not get into the Forex market. Do not use your retirement funds for Forex trading; that would be extremely foolish.
Be very wary of online trading, it can be impossible to get a refund but it is very easy to transfer your funds. The internet is an easy way for fraudsters to reach potentially millions of people.
The internet also can hide where a trading company resides. If you transfer your money to a foreign location, it may be impossible to get it back.
You must get the background of the company you are dealing with. You should ask for all information in written form. Check with the Better Business Bureau as well. Do not rely strictly on information you hear verbally.
If you are not completely satisfied or comfortable with the information you receive then just do not deal with such a company.
You may hear the term ‘interbank’. It refers to a loose network of Forex transactions that are negotiated between financial institutions and other large companies.
These are usually the only ones investing in the interbank market. So, be careful of a company that indicates that you should trade Forex in the interbank market. This can be a sign of an unscrupulous trading company.
Another term you may hear is Margin trading. Margin trading can make you responsible for losses that are greater than the dollar amount you deposited.
Many Forex traders will ask customers to give them funds, which they sometimes refer to as “margin.” These sums can be in the range of $1,000 to $5,000.
Those dollar amounts actually control a far larger dollar amount of trading and customers are sometimes not aware of this. In essence do not trade on margin unless you fully understand what it means and what you are doing.
You must be prepared to accept losses that can exceed the margin amounts you have paid.