FOREX Trading - The Scam That Will Steal Your Forex Trading Funds

FOREX Trading - The Scam That Will Steal Your Forex Trading Funds

by Nigel Banks

The Forex is the worldwide market that is used to exchange currencies of different companies. It is called by many names including the FX and Foreign Exchange. This is a market on the move with business and governments constantly looking to secure a known exchange rate for whatever currency they are going to exchange to.

This means that there are always parties looking to buy or sell a particular currency, which makes these markets very liquid, and a great opportunity for private investors. Because of the profound investment opportunities inside the Forex private investing has sky rocketed. And with this growth have come a number of scams to take advantage of un-experienced traders.

Small business and individuals who are looking to make quick profits from the FX are the ones falling prey to these con artists. The scams promise the allure of a quick buck without any track record of success in actually trading the markets. And because of the extreme volatility of these markets you could easily end up losing everything that you have invested in one single transaction.

The Broker Scam

The storefront broker scam is the first that you may encounter. This is where someone will set up a sophisticated looking website with a false Chicago address and claim to be a genuine broker. If you place your money with a shop like this you will have very little chance of getting your money back. It is wise to read all the material they provide closely to make sure they are even authorized to trade in the Forex markets, most are in countries that are not permitted to do so, they are just collecting as much cash as possible before they close down.

It is wise to do your investigating and talk to other traders to see whom they use for trading. And also get under the wing of a veteran trader who can show you the ropes. Or even check out some of the automated trading systems that are on the markets today. They are chock-full of proven trading strategies that you can use to profit with until you understand the markets further.