Forex scams are a very real threat to those new to the forex market or who have been around for a while but have not been successful. Just like the majority of forex traders lose money at some point, many will lose much more. If you are considering forex trading as a way to make money, you should be forewarned that you could find yourself in a forex scam. A forex scam is simply a bad trade that was created to get your money without you knowing it. Here is a forex scam review of several different types of forex scams.
An old stand-by forex scam is centered on computer manipulation of bid-ask spread. Basically, the bid-ask spread between the ask and bid, also known as spread, represents the total commission of an transaction processed via a broker. These spreads are typically different between different currency pairs. For example, if you trade forex with the EUR/USD currency pair, the forex scam would likely involve a broker who tries to convince you that the EUR/USD is a lucrative currency pair to trade. He or she will tell you that this spread is high and that you can get better spreads by trading this way. While this may be true in general terms, there is no guarantee that you can actually get better spreads as the price of the USD might go up or down without any outside influence.
Another forex scam involves using a “trusted” or “competitor” broker to sign you up for an account. Your account is opened with the broker, you put money into your account with the broker, and then you begin to trade. Your trades are based on what your broker has told you, and you might end up losing a large number of dollars as your trades go terribly wrong. This happens often as traders do not read the fine print in brokerages carefully. A review of brokerage websites for brokers can help traders to distinguish between the good and bad brokers.
There are many forex scam stories, which have become more rampant in recent months. Many forex brokers use forex software instead of real people to carry out transactions, and they are less regulated than regular brokers. In addition, brokers can set their own rates and fees, which can make them irresistible to scammers. If you encounter such a scenario, try to get in touch with your broker immediately and discuss the situation in detail. Tell your broker everything you know about the forex scam.
Another common forex scam involves using unauthorised firms to perform forex trading for you. These firms promise you low fees but require personal information, which you unwittingly give to these un authorised firms. The personal information includes your account details, password, PIN, social security numbers, etc, and most of the time, your money is drained and you do not even receive the results.
Another forex scam is related to the forex market. In this scam, investors are told to send money via a prepaid credit card, which then gets converted into foreign currency. However, the actual process is completely different from what happens in reality. In forex scams, investors need not even be aware of the source of funds, if they are instructed to put their trust in a foreign exchange broker. Investors also need not divulge their PIN, social security numbers, or other personal information in an online forex forum, if they are instructed to do so by a broker or salesperson.
A forex scam has a name, and it goes by various names like a ponzi scheme, a pyramid scheme, an investment fraud, a fraud using the internet, and a host of similar terms. In short, a forex scam involves someone taking your money in exchange for something of value that they have already obtained. In most cases, this something of value is another person’s life or liberty. Investors have fallen victim to this scam so often that in some cases, the victims have taken legal action against the companies involved.
There are many ways to avoid becoming a victim of a forex scam, but it is important to be aware that there are scams out there. Before investing money in any type of foreign currency exchange market, or in anything else, it is important to understand how everything works. This way, you will be able to make an educated decision regarding whether or not you should invest, and you will be able to safeguard yourself against potential scams.