Forex scams are very common in the industry and when you are taken advantage of, it can cost you a big chunk of change. Here are a few things to look out for in the Forex market.
One of the biggest problems in the Forex market is that many product sellers know they are selling crap when they market it. They hype up their piece of Forex software that they ripped off from someone else and talk about how it's the greatest thing since the invention of the Internet (thanks Al Gore!).
The problem is, when you buy the software, you put it on your account and it promptly blows it out. You go from hundreds or thousands of dollars to $0 in a short period of time. You might be able to get your money back if the product has a guarantee, but in the meantime, you've lost all of your investment capital.
This is common in the area of Forex software and Forex trading systems.
Scam Forex Brokers
Besides the fake systems, you'll also come across some fake Forex brokers out there. This can be a big problem, because it doesn't really even matter if you win or lose your trades. You might not get your money back even if you win.
That can be a huge downer. You're riding high after a huge winning streak! You're on top of the world! You give your boss your two-week notice and tip your desk over with papers all over it! Then you try to withdraw some money from your broker and you never see it again.
Sources of Help
Although you can't completely protect yourself from scams, you can definitely lower the chances of being taken advantage of by one with some simple research. Before buying a program or opening an account with a broker, check out some reviews. You can find out about many of the brokers, manual systems and Forex software programs
programs on the market right here on Forex Trading Rookie.
Another fantastic source of info is
Forex Peace Army
. At FPA, you can read reviews from real Forex traders and see what the cumulative rating is from every person who leaves a review on a service.
A third resource to check out is
. This is the same company that runs the phenomenal website Baby Pips. The Review Pips site is basically the same idea as Forex Peace Army, but it does give you access to some more opinions.
Those hyped up e-mails and sales letter sites can be very enticing when looking for products in the foreign exchange market. You might think that you've stumbled across your very own goose to lay golden eggs, but until you check them out thoroughly, don't get your hopes up as it could be one of the many Forex scams in the market. If you find a product, there's a good chance someone online has already tried it. You might as well benefit from their knowledge before shelling out your own dough.
Return From Forex Scams to Forex Market
Return From Forex Scams to Forex Trading