Before you join any forex trading forum, check it out to make sure that it is actually legitimate and that the people behind it actually practice what they preach. This means that they should clearly display their risk tolerance and that they won’t offer too-good fake rates without offering an equal-opportunity, legitimate rate for you to learn from.
You should also check their prices before joining them. The good ones should make their rates clear, good, and based on reality. The bad ones will quote unrealistically high rates that could even change on a daily basis.
Also, check their reputation. There are many fraud sites out there that will try to lure in eager newbies by selling high-yield forex trading strategies that come with no guarantees and do not really work.
How to Spot Faux Promises
There are lots of websites and forums claiming to be the one-stop solution to your forex trading woes. This is because the trading field is one of the most lucrative and promising careers today. There are also many of these forums that offer free beginner courses for people who are willing to learn. These courses usually last 3 to 6 months and cost just a few hundred dollars. They promise to help you get started trading at a very early age, earn your first million, or even accumulate a pot of over $10 million by the time you are 30 years old. Some of these courses, however, are just Ponzi schemes or pyramid schemes, where people are being enticed to join and soon after, are being asked to buy more cheap trading services.
What to Watch Out For
The Forex market is very competitive so it is not surprising that unscrupulous traders will try to take advantage of people and earn quick easy money by pretending to be from the official forex trading platforms, banks, and insurance companies.
All Forex platforms have well-designed and professional look that will instantly identify them as legitimate. However, you must always remember that scams are also no exception to these official looking websites, people or firms that claim to be part of the forex market. Any established and legitimate forex site, banks or insurance company would never try to cheat a customer to gain quick profit by pretending to be the company in question or going to one of the major forex sites and saying that they were unable to pay you money.
What to Do if You’re Bitten by a Forex Scam
If you want to know what to do if you’ve been scammed, here are some tips.
1. Make sure you are dealing with an experienced trader or investment advisor. It is advisable to work with an advisor who is also a client of yours. You can find a professional account manager from established forex brokers. As a second precaution, you should learn from the experience of others. Learn from the mistakes that others have made in their trading experience.
2. Find out as much as you can about the company that is selling the “profitable” business to you. Look at their website. Look for reviews and testimonials from other clients. Read a lot of information and feel free to ask any questions you may have.
A Final Word
To conclude, the international foreign exchange market is one of the most critical and lucrative markets for potential traders. You must consider it and play it carefully, or you will be likely to lose a lot of money by some clever forex scammers. Make sure that you are not taken by fraudsters and that you are not misled by inexperienced advice and skills. It is a jungle out there and you are going to need the very best resources to make your way. Learn as much as you can about trading and make sure to have the best tool at your disposal so that you can trade like a pro.
Lastly, before you jump in and invest a lot of money and effort, make sure that you have the most up to date knowledge on forex trading.