Forex Trading Scams
When you figure that there can be as much as $5 trillion being traded in the market every day, your eyes can pop out at such a sum! And what an opportunity there is to make money! This is a combined sum that considers the spot forex market and currency options as well as future contracts. Of these markets, the forex spot market is the one that is unregulated and can be a magnet for unscrupulous traders. With the lure of making a huge fortune from other people’s investments, there are black hats out there you must watch out for. The good news is that through careful research you can avoid falling into a scam.
Tricks of the Signal Seller
The signal seller system might sound like a good way to get tips and recommendations, but you should proceed with great caution! What happens is that a retail firm, managers with pooled assets, account companies or private traders will offer to let you know when is a good time to buy or sell in forex. They’ll offer to use their wealth of experience in trading to help you out – for a fee. So, what happens is that you sign up with them for a fee, which can be on a daily, weekly or monthly basis. What you would expect is that you would get such good insider tips that it would be worth the expense because you’ll be trading more profitably. But what really can happen is that the person or company that you gave the money to simply disappears. Possibly, to ensure that you’ll keep sending them money, they’ll give you a tip from time to time. That does not mean that everyone offering this service is a black-hatter, but it does mean you need to do your homework and research the person or company well before handing over money.
Be Wary of the Robots
Robots in forex are like automated trading systems. According to those who promote them, the systems are so intelligent that while you are out playing golf, working or sleeping, you can make money. The whole scheme is based on a system of parameters and specific optimization codes. So, what happens if those codes are not set correctly? It means that you’ll get randomly based signals to buy and sell. Again, there are systems that have been tested and found to be useful, but it’s up to you to thoroughly research any company before signing on.
How to Choose a Worthy System?
With forex, as with any other trading platform, keep your goals reasonable. Don’t set your sights too high and gamble with the money in your trading account. Keep in mind that you should not need to pay more than a few hundred dollars to get into a well-performing system. That means when you see someone promising you phenomenal results for only few thousand dollars, you should be wary. We cautious of companies making such wild claims.