Popular Forex Scams
Forex scams can have many forms. Some of them can seem very convincing and legal. They all have in common the fact the traders are looking for that magic formula that can make them profits. Unfortunately, there are no easy answers. Below is a short list of the most common forex scams.
1. Signals sellers
Every day some new company is saying that they have found the secret formula for beating the market 100% of the time. They say that they can provide you information based on some signals, that can help you trade with success. These company usually have a commission, or a tax, daily, weekly, monthly, and they do not offer you anything that can help you trade more profitably.
There is no such magical key that can make you trade 100% profitably. And if there where, why would you sell it?
2. Fraud investment funds
In the past years more and more funds have appeared. Most of them (if not all) are scams. They promise you huge profits if you give them your money, so that they can trade with them on the forex market. It is usually a ponzi scheme. Where today’s investors are paid with tomorrow’s investors money. When the funs runs out of investors they disappear, along with the money.
3. Miracle software
There is no software that can understand the forex market. All-thought a quick search on Google will show you a lot of results, saying different. Some of these company’s sell there software with over 5,000 Euro, software that you can find on internet for free. It is not recommended to buy any software that will tell you what trades to make.
Tags: Foreign Exchange, Forex, FX, Losses, Scam, Trade, Trader