Apart from being potentially profitable, Forex market becomes more dangerous nowadays. There many scams in the Forex industry and they vary in types and scales. If you want to start trading Forex you should know a lot about such scams to avoid losing your
- Forex broker scam. It was very popular several years ago, but its popularity seems to fade now. Usually its just some
set-upForex broker site that promises the good trading conditions and offers some basic « bucket-shop» trading simulation to attract large customer base and run away with their money. Just do your research on a broker before depositing money and youll be safe from such scams.
- Forex strategies selling. There are hundreds «successful» Forex trading strategies selling on the Internet. Many traders tend to believe that they can spend $300 on such a strategy and become rich with it. In reality the best thing that money can buy is education. Sold strategies are usually nothing but crap. Not only they wont make you rich, they will probably make you lose your account margin.
e-booksselling. Overrated and hyped e-bookswith a lot of marketing and a little use (if at all) are the actual problem of many industries. Forex e-booksselling for ridiculously high prices and promising to tell you «the best kept secrets of the millionaire traders» are nothing but wasted money. Youd better lose that money in Forex trading, trying to find your own strategy and getting some real practice.
- Scam Forex managed accounts. Some people like the idea of Forex, but dont like to trade on this market, they prefer to invest in it. Thats where managed accounts come to play. Its a good idea to have some company or a private trade to trade for you and earn a share of profit. But unfortunately there also scam players here. They will just take your money and disappear. Some scam managers will probably even pretend that they are really trading and will show you some profit, hoping that youll deposit more. Do not fall for such scams, thoroughly research your manager or better invest in some reputable managing company.