More and more people these days take part in retail Forex trading.Sadly, that trend is matched with an equally increasing number of people reporting that they have become victims of Forex fraud. In recent years, organizations like the Commodity Futures Trading Commission (CFTC) in America have lodged at least eighty motions for enforcement to the judiciary against numerous companies who victimized nearly 23,000 private currency traders. Unfortunately, most of the $3 million private investors lost through these dubious transactions are irretrievable.Since currency trading market has not central clearing house and is largely unregulated, it is extremely vulnerable to scams.
To protect yourself against these less-than-reputable companies, you have to take extra care in trading with one.Forex scams can come in many different forms. For instance, they have been known to offer pricey computer applications that either supply price signals of debatable quality or autotrading Forex platforms that simply don’t provide what the user expected in terms of profits. Others companies offer get-rich quick schemes.Always remember that the foreign exchange market is one, if not the most volatile asset class in the world.Having said such, there are just as many winners as there are losers in Forex trading.
Fraudsters will de-emphasize these risks, and often coax you into opening an account or depositing a higher amount by saying your investment is secure or that losses are minimal.
No matter what you are told, the currency market is risky. In this regard, before taking part in the currency market makes sure you are in a financial position to manage losses if they happen.
Be mindful of the dangers inherent to trading online. Transmitting cash online can be easy and fast, but remember that these online brokers don’t always carry money back guarantees. And if the brokerage firm you keep an account in is in another country or and operates exclusively online, refunds are almost always impossible.Research as much as you can about a company before committing to it.If there are bodies regulating their practice in your country, also check if the company is registered.
Forex trading is profitable, if you understand how it works and you take carefully calculated risks. However, Forex frauds are on the rise and if you are not mindful you can see your life’s savings vanish in minutes. More info on these scams can be found here.