Common Sources of Forex Fraud
Forex fraud is a serious problem in the foreign exchange market today. Some people think the Forex market is a scam in general. While this simply is not true, there are a lot of different scams that have made their way through the Forex community over the years. If you're going to become a regular in the Forex world, you need to know what to look out for. Here are a few Forex scams that you might run into out there.
1. Scam Brokers
One type of fraud that you may come across is that of a fake or fraudulent broker. Forex brokers are literally a dime a dozen these days. You can find them everywhere. There are always new ones popping up all over the place. They're like the financial version of rabbits.
In some cases, people deposit their money with a company who they think is a "broker." They trade and make money on the "broker's" platform. Then when it comes time to take a withdrawal from their account, the broker conveniently does not give them their money back.
They might get some of their initial deposit back, but the winnings are mysteriously lost. Sometimes, the broker simply shuts down the website and offers no way for clients to get their money back.
In other situations, the broker simply uses unscrupulous tactics to slowly dry your account balance up. For example, the broker may hunt out your stoploss and amazingly move the price slightly so that it hits your stoploss. Before getting involved with a broker, it's important to read some
Forex broker reviews
right here on the site.
2. Forex Software Fraud
Another common scam that you regularly find in the Forex market is that of fraudulent Forex software. These programs promise amazing things from their software programs and deliver very little. Some of them are nothing but a complete Forex fraud. Most of these guys market their program as an ATM in a box and it ends up being a money pit. You spend $97 on the expert advisor, put a few hundred or thousand dollars in an account and then promptly lose your account balance with it.
Many of these guys simply take programs that have already been released or are widely available for free, repackage them and put up a killer sales letter. Then they get all of their buddies with email lists to blast it out to millions of people. Then when they have made enough money, they pack up shop and move on to the next product. Again, read some
Forex software reviews
before you actually buy any of these products. I'd say over 90% of these things are crap in a box. Well, you don't even get a box most of the time, because they are instant downloads. So they're just crap.
3. Forex Trading System Scams
Just like Forex software, Forex trading systems are often marketed as the next great hope for traders. In some cases, these guys simply put together a system with indicators that are readily available on your MT4 platform, make a little manual, and then sell it for a few hundred bucks. Sometimes, the programs simply don't work and they promote them like they are the best thing in the history of the world.
Again...I hate to seem like I'm beating a dead horse here, but you really need to do your homework. Check out
what other people think
about the system before you part with your hard-earned money to get it.
I can assure you that the Forex market is not a scam. It's just like any other financial market and is not controlled by a single entity. However, you have to be on your toes because some people involved in the market are just plain ruthless and think nothing about perpetrating Forex fraud. If you want to find out some more about these systems and brokers that I speak of, feel free to browse around the site. I've got a lot of resources here for you to check out and they can all help you be a better trader. If you think your friends might appreciate this site, feel free to share it with them through the social networking buttons at the bottom or hit the "Like" button at the top of the page.
Return From Forex Fraud to Forex Market
Return From Forex Fraud to Forex Trading