Watch out because there are a lot of Forex trading scams out there. Don’t be a victim of these scams. Read this Forex trading guide and learn how to avoid these cons. Forex trading has become a very lucrative means to earn a living that many con men are turning to it to prey on unsuspecting traders.
Forex trading scams can take on many forms. A common theme in these scams is the promise of easy money. Scammers like to prey on gullible individuals by promising a get-rich-quick scheme to them. These promises always prove too good to be true. There’s no easy way or shortcut in Forex trading. It takes a lot of effort and time to become a good Forex trader. And you should be suspicious if anyone is promising you the opposite.
Here are the more common Forex scams that are out there:
Signal Sellers sell insider information to traders. They give advice, usually at very high fees, on which trades to execute. These sellers purport to have information on news and events that will affect the movement of the market. Don’t believe these guys—they’re hacks. Yes, they can sell you information, but you’ll soon find that the information they sold you are virtually useless. Don’t believe these signal sellers—the information they have is something you probably already know.
If you’ve heard of HYIP or High Yield Investment Program then maybe you’ve been a victim of this scam. Scammers approach traders offering to take their money to invest in the High Yield fund. They sweet-talk the traders into thinking that they can double (or even triple) their money in mere weeks. Again, all these things sound very inviting but are too good to be true.
The HYIP is reminiscent of the Ponzi scheme. In this scheme, the scammers take their victim’s money without even investing it. They pool the money into a fund they use to supposedly pay their clients. But all they do is take the money and run.
Ultimate Forex Software
You probably encountered ads in websites promoting a software that can give you sure tips on which investments to make. Don’t believe in this software—these are nothing but scams. The Foreign Exchange Market is something that even the world’s fastest and most-advanced computers cannot predict.
If you’re looking for a Forex software, look one that provides you data to help you with your analysis. Never invest in a software that can suspiciously do the thinking for you. The cost of these fake software should also be a dead giveaway. These scam software goes as high as $5,000.
Don’t be a Victim
You should always be on your toes when trading Forex. These scams are quite common and you will surely encounter a lot of them. Think long and hard before making any decisions. There’s a saying that goes: “a fool and his money are soon parted.” Don’t be a fool; avoid these scams at all cost.