…Forex online trading experienced brokers know that in today’s saturated internet trading market there are more sharks trying to lure unsuspecting customers with false promises than reputable forex companies.
Forex online trading experienced brokers know that in today’s saturated internet trading market there are more sharks trying to lure unsuspecting customers with false promises than reputable forex companies. Indeed, “forex scams are everywhere and getting more common, even using customer’s money to buy all kinds of luxurious products and develop real estate projects”, according to the U.S Commodity Futures Trading Commission (CFTC). In 2009, the CFTC obtained an emergency court order freezing assets held by Minnesota residents Trevor G. Cook and Patrick Kiley and their brokerage firms for defrauding hundreds of customers of more than $190 million to purchase property, develop a hotel casino in Panama, buy seven luxury cars, a house boat and a submarine. A forex scam is any trading scheme used to defraud traders by convincing them that they can expect easy wins and high profits by trading in the Foreign Exchange Market. In practice, a scam can be failure to return money owed to traders, lack of transparency in the pricing and execution of forex online trading transactions, providing inaccurate or false information, unresponsiveness to customer issues or complaints and the targeting of vulnerable individuals. In another case, The CFTC charged Prestige Ventures Corp, South Carolina resident Kenneth Lee and Oklahoma resident Simon Yang for being the masterminds behind a multi-million dollar commodity futures Ponzi scheme. “These are very old schemes that get reinvented all the time with sophisticated methods to lure people in and take their money away”, says a CFTC spokesperson. So what should inexperienced traders look out for? Normally, if something sounds too good to be true it probably is. Promises of high profits are often a sign of a forex scam. A respectable forex online trading company should always remind their customers of the risks involved. Brokers should be regulated by the relevant authority. A stamp from the NFA, FSA, CTFC or another reputed institute is no guarantee of anything, but is better than nothing. Find out more about the product or service you are being sold by visiting forums and talking to forex online trading experts. You can also Google the product and add the word “scam” or “suck” to the search. Forex robots are an easy way of scamming people, so always try to get in contact with a person and ask all the questions you need. You will then be able to test their real knowledge on the subject. Lastly, inform yourself and use your intuition to make the best decision. Assume the company is a scam until proven otherwise. It’s very easy to set up a well-designed website and offer all kinds of services nowadays, so beware of all the forex scammers out there.