Forex is a great profitable system, and unfortunately there are people out there using the system to scam you out of your money since you are trading over the internet. These scam artists are now becoming more popular with the growth of the Forex system. Scam artists can find people to scam through the media (newspapers, TV, radio etc).
Most scam artists pick on the new traders, since the experienced traders can spot a scam from a mile. As a new trader, you should thoroughly research the Forex system that you plan to join, and you should also gather all the background information on the system as well as any businesses you are considering to trade with.
With Forex trading there is always risk, and one way of finding a scam artist is to see the people who promise you no risk. It doesn’t matter which company you trade with, there is always risk, so don’t believe anyone who says there isn’t, they just want your money!
You need to know that if you are trading in Forex you must have knowledge of this, otherwise you will fall into the basic trap, and could lose a lot of money.
Another obvious way of spotting a scam artist is a company that not only guarantees no risks, but also guarantees profits. Profiting from the system is up to you, and you alone as no one can say that you will (or won’t) profit from a trade. If someone says they can guarantee you profits then stay away from them!
Another way to spot a scam artist is to find someone who promises you employment if you use their system. This is a way of making you spend money in their system to give them funding for their business. The basic tactic of these artists is to attract you with their training sessions, then they will take your money with various techniques and promise that you will make money from the training you have received.
To check if a company is under a scam artist influence, then check for Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA). Many respected businesses are members of these two groups, and if they’re not, then you should be careful as they could be scam artists.
Know that scams can become technical since the Forex system is unregulated. If you do unfortunately get scammed then the best thing to do is contact the CFTC, as they are a federal agency that will investigate the scam and enforce their laws.
As you can see there is a risk to the Forex system of getting scammed. However, if you read this article before going into a trade and making sure everything checks out with the business you will have less risk of trading against a scammer.