Forex (Foreign Exchange) Scams

As more and more people enter the Forex (Foreign Exchange) Market each year, unfortunately so does the increase in Forex fraud.

Between 2001 and 2006 the US Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $ 300 million, mostly in managed accounts.

The highly technical nature of the retail Forex industry, and the loose regulation of the market, leaves retail speculators vulnerable.

Defrauded traders and regulatory authorities can find it very difficult to prove that market manipulation has occurred since there is no central currency market, but rather a number of more or less interconnected marketplaces provided by interbank market makers.

Retirees can be especially vulnerable who may have a large sum of retirement cash and they're looking for a safe place to invest it. Never use retirement money for trade purposes, it's a good way to lose everything.

These are the kinds of people that become targets of fraudulent operators market.

Remember, if it's too good to be true it probably is. Here are some examples of statements that should be warning signs that you're about to be conned.

1. "Whether the market moves up or down, in the currency market you will make a profit."
2. "We are out-performing 90% of domestic investments."
3. "The main advantage of the Forex markets is that there is no bear market."

These statements are patently false, and the beginning trader should proceed with caution before he turns over his hard earned money to these hucksters.

If you're just getting started trading in the Forex Market, you need to become fully informed on what the best ways are to profit from this huge market.

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Source by Eric N. Jacobson


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