Forex Fraud Reviews
Forex scams are cropping up everywhere, even on the Internet. This is partly due to the large amount of trading that takes place online on a daily basis. But it’s also due to the dearth of quality forex education and forex scam review resources available to the average trader. Unfortunately, there is no way to ascertain how many forex scams are being run right now or how many forex scam review websites are actually useful sources of information. In fact, many forex scam review websites have actually contributed to the rise in forex scams.
Old point-spread forex trading scams were based primarily on computer manipulation of bid/ask spreads. Essentially, the point spread between the ask and bid essentially represents the markup of a forex trade processed via a broker. These high markups usually vary between various currency pairs. Obviously, any forex trading scams based on this methodology will be extremely difficult to find.
Another forex scam method involves using supposedly impartial third-party forex brokers to facilitate transactions. While third-party forex brokers may indeed be able to process your transactions for you, they do not have your best interest in mind. Quite often, these brokers are willing to foreclose on your account in the event that you aren’t paying your monthly minimums. The forex scam here is that if you are already neck-deep in market trouble, you will be unable to liquidate your short positions quickly enough to escape with your investment. If you are already underwater, you will lose all of your initial investment in both time and money.
Other forex scam methods include tricking traders into thinking that their accounts are closed, only to send them “fraud alerts” or “scam checks” after the fact. This is essentially false and lies are spreads that will eventually force many traders to lose their investment capital. Again, this is an undesirable outcome for most traders.
Finally, there are forex scam artists who operate unauthorized firms. These firms will basically pay traders a few hundred dollars upfront to process transactions for them and then disappear, taking your money along with them. As you can see, even though these traders may be legitimate brokers, it would be wise to invest only with regulated, reputable firms that can provide evidence of their legitimacy before engaging them.
Forex scams are unfortunately a common feature of the forex market. However, due to the relatively new nature of the forex market (compared to traditional markets like stock or bonds), there are far more fakes and scandals of which many traders are unaware. In order to avoid the risk of getting involved in a forex scam, you should always ensure that the company offering you the service has a good reputation and is backed by professional brokers. This will provide you with an excellent level of protection against any fraudulent activities.
It is also important to understand how much currency scams cost you. This will help you to determine whether or not you really need to be using a particular broker. There are two ways of calculating this, the cost per trade and the maximum drawdown. The former refers to the actual fee paid by you to the broker on a regular basis; whilst the latter takes into account the time duration spent in making trades. If you are spending several hours or days every week on forex trading, you will obviously incur a lot of costs.
However, it is important to note that just because a company might have a bad reputation does not necessarily mean that they are bad in practice. In addition, there are many reputable, high returns companies out there. In addition, if you look around enough, you can find demo accounts that are specifically set up for traders who are brand new.