As trading in foreign currencies are getting popular by the day, forex trading scams are becoming more common and wider than ever. Forex traders who are beginners are considered to be the biggest prey for these scammers. All this is because the forex market is not regulated. The following are some popular tricks employed by scammers to catch people who are unfamiliar with the forex market unawares.
1. Selling signals:
As a new company in forex sprouts out every day, they give high promises and pretend to be able to sell you info on which trades you should make. These people usually charge on daily/weekly/monthly frequency for their advice and normally you don’t get anything in return that improves your currency trading. There is no magic instrument that helps predict the movement of the currency market.
2. False investment stocks:
In the recent past, HYIP (High Yield Investment Program) funds have started up all over the area. Almost all of them are scams, barring a few ones from trusted sources. They foretell you a high returns for temporary investment of your funds in their forex programs. Typically called a Ponzi scheme where the yesterday’s traders get their money paid back by tomorrow’s investors. Once the flow of fresh funds stops, they close down and disappear with whatever money they have with them.
3. Selling innocent traders with miracle softwares:
No software in this world can predict neither the markets for you nor be a perfect currency converter. Nevertheless, a Google search will turn lots of sites which claim their softwares can break that jinx. Special “packages” > $5,000 are sold off to innocent traders who would want to make a quick buck utilizing the volatility in the markets and the software. Not an advisable buy.
Many scammers target chiefly on the naive who are not fluent on the subject and are very infatuated to “get rich quick”. They cajole you with their services asking you to join them for a fee. They also give false promises such as making 1000’s with small capital to invest. They show screenshots of some professional looking to make the whole forex scam look very convincing.
Following are some of the major scammers that one needs to watch out for:
- Trade Oracle
- Forex Gen
- Moneyforex Financial