Forex Scam

Basically, you can smell a scam when you’re promised extraordinarily high returns for little or no risk.

Your basic human instinct should tell you to run- as fast as you can - when you are promised astronomically high returns on the cash you outlay. Yet, every day, thousands of people are swindled by fast-talking con artists who can be very convincing.

1. Be wary of any Forex Broker who promises you that the Forex market is a zero-risk, high profit investment. (In truth, it’s a volatile market with lots of opportunity to make money, but you *will* have losses. Every trader does. It’s unavoidable.)

2. Steer clear of any system which claims you can “beat the market”. You can’t.

3. Always make sure you understand the trading strategy being offered to you. Some brokers recommend the use of high leverage (ie. Borrowing money to invest), which can increase your wins but will also increase your losses. The real winner in this scenario is the broker, as they always get the larger commission. Only ever trade with money you can afford to lose.

Stick with reputable brokers and educators who tell you up-front what your costs are going to be, and what your level of risk is likely to be.

Avoid putting large sums of money all in one place - this should be your golden rule anyway. Always spread your risk. You don't want too many eggs in one basket as they say.

Finally, if you find you have been scammed, you need to report it to the police. It astounds me how many of these crimes go unreported, because people feel silly for having been conned. Please, put your ego aside for a moment and report the crime. If one person reports it, this gives many others the courage to do the same thing.

Ideally, all forex scams will be stamped out completely and people can feel more comfortable to trade in this (albeit high-risk and extremely volatile) market without any further fear of having their money stolen.

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