Technological advancements, and large financial gains have made FOREX trading one of the fastest growing trading trends. Leading FOREX brokers have reported up to a 500% increase in the number of brand new retail customers. In keeping with the astronomical growth of new traders and interest in the FOREX market, FOREX trading scams have also increased in both number and scope.
Scams are being advertised over the radio, on television, in newspapers and of course, over the Internet. Investors who unwittingly fall for these schemes generally lose their entire investments. FOREX investors must be vigilant and focus on these three warning signs, as well as their gut feelings, for potential FOREX trading scams. They include:
1. Outrageous Promises of Little or No Risk:
FOREX trading holds so much potential for reward because there is a high risk for loss. Beware of any company, organization or individual, that claims that their FOREX strategy carries little or no risk.
2. Large Profit Guarantees:
Even the best and most experienced FOREX trading firms cannot guarantee that they will make a profit on any given day. Claims to the contrary should raise a red flag.
3. Employment Ads for FOREX Traders:
Unscrupulous "employers" are looking for "employees." These groups reel in individuals under the guise that they are offering employment. They provide individuals with a free, practice account. Individuals are then told that they have traded so well, that they will be offered a job to trade for the company. It doesn't exactly work out that way. Instead, individuals are directed to invest their own money, which they will never see again.
FOREX trading is a profitable endeavor for the knowledgeable and for those who are willing to learn. Unfortunately, there are many groups and individuals who are more than ready and equipped to swindle unassuming persons out of their money. Investors must be aware.
