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.
Learn more about Forex [http://www.learnforexonline.net]. This website includes great information for learning Forex including Fundamental Analysis, Charting, and answers many FAQs regarding Forex Trading. You can also sign up for a free demo account to use to practice, as well as a Forex e-course, and download a free Forex Fundmentals ebook.
These investment scams often take advantage of inexperienced traders with the lures of low-risk, high-return investments. It is correct in saying that people must understand that all investment carries risk and that offers of low-risk are often too good to be true. As mentioned in the article, a level of cautiousness when approaching these investments combined with further research into the offered options can often prevent one from falling prey to these scams. - Scamless Australia
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