Top 7 Strategies to Beat the Forex Scam
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The Forex Market(foreign currency exchange) is a relatively unregulated market with high potential for gains as well as high potential for loss. These two factors, high potential for gain and soft regulation, have attracted swindlers from all over the world. These scam artists use the allure of Forex to steal millions from unsuspecting investors. So how does the Forex newbie avoid Forex scams and find real Forex products?
- Remember the saying If it sounds too good to be true, it probably is?.
There is NO such thing as guaranteed returns in Forex let alone a guaranteed 200% per month. Forex can be VERY profitable but it is NOT easy and there is rarely weekly consistency. If you see a Forex Automated System making such claims beware.
- Research the company presenting the opportunity.
In the case we discussed a moment ago, it only takes a quick look at the company's website registration to find out there are inconsistencies in the story. The website was registered in July of this year but the company claims to have started in June. Also, they provide false business contact information in their site registration.
- Never give up control of your money.
In Forex, you NEVER should have to send your money to someone other than a fully regulated Forex broker. If you decide to have someone manage your funds for you, you still maintain control of your funds and your Forex account.
- Speak to the people behind the Forex opportunity.
Many Forex opportunities are completely legitimate. If an opportunity is legitimate the company will be more than willing to speak with you directly. Never invest in any Forex product without having contact with the individuals responsible for that product.
- Does the company disclose the risks involved with trading Forex?
Forex is a risky investment. If a company refuses to acknowledge that they are misleading you. It doesn't matter whether you are considering a Forex managed account, an automated Forex trading system, Forex education, Forex trade signals, or any other Forex product. If they are offering you something to do with Forex, they MUST disclose the risks of trading Forex to you.
- Don't let emotion get the best of you.
There is something exciting about the possibility of making 200% per month guaranteed. This excitement often blinds people from reality. They want to believe SO bad that something is real that they overlook the obvious.
- Education yourself about Forex.
Know the market and what moves it. Understand how difficult it really is to make money in Forex and this will put any opportunity in perspective.
Echo FX strives to be an honest, discipline Forex Account Manager (http://www.echocurrency.com) and Education provider (http://www.academyofforex.com).
Article Submitted On: November 07, 2008