Topic: How to Avoid Forex Scams: Top Tips (Read 3121 times) previous topic - next topic

How to Avoid Forex Scams: Top Tips
Forex scams are well-crafted as well as believable. Whenever there is an opportunity to make money in a short period of time, you will find people who are eager enough to jump and avail this golden opportunity. But, this opportunity may not be golden always. This means, making money in a short period of time, may not always be advantageous for you. When people with much greed desire to make money without giving much effort, they fall prey to forex scams. Traders who are new to the forex market, generally, suffer more. But traders, who are well experienced in the foreign exchange market, are wise enough to avoid these frauds. Also, you need to be very careful while selecting a trading forex company.

The U.S CFTC, commonly known as Commodity Futures Trading Commission, let people know about the frauds that take place in the forex market. Also, they give tips on how these scams can be avoided. Some tips are discussed in this article. Read on.

•   Be doubtful about high profits and low risks
Always be doubtful about low risks and high profits. There are ads that promise high returns even on small investments. Always try to avoid these, as these are like baits. In the forex market, you can make huge amount of profits, as well as loss huge amount of money. So it is recommended that you always stay alert and make your choices wisely.

•   Beware of various sales tactics
If a dealer is authentic, s/he will wait for you to make a deal, as they will know that you need time to check all their details along with credentials. But if a dealer is a fraud, s/he will be impatient and will want to make the deal as soon as possible, as they will want to gain score. So, it will be wise of you to stay away from these kinds of calls where the dealer is putting pressure on you or forcing you to invest money as quick as possible.

•   Verify details
Before investing in the forex market, always make sure to check the background of the company. If you are a resident of the U.S, you need to check whether the company is registered with the CFTC or not. And if you reside in some other country, make sure that the company is registered with the authorised organisation of that country. Check thoroughly if the company or the person has done any fraud in the past. And, if you are doing business on the internet, it will be easy for a scammer to scam. So, it is important that you verify the number as well as the address of the company or the person that you are dealing with.

•   Transparency
The dealer you choose should be transparent about all the fees that are required. If the dealer does not offer any spreads, stay away from that dealer. By doing this, you can avoid forex scams.

You should aim in keeping the losses low and the profits high. And, it will be great if you stick to companies that you think you can trust and verity their credentials.