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Variety of Forex Scams

Apart from being potentially profitable, the Forex market is a dangerous place. There are many scams in the Forex industry and they vary in type and scale. If you want to start trading currencies online, you should know about such scams to avoid losing your hard-earned money. If you are an experienced Forex trader, you have probably already got hurt by some kind of FX scam, and if not, you should also know about potential fraud to avoid it in the future.

  • Forex broker scam. It was very popular several years ago, but its popularity seems to fade now. Usually, it is just some set-up Forex broker site that promises exceptionally good trading conditions and offers some basic bucket-shop trading simulation to attract a large customer base and then runs away with their money. Just do your research on a broker before depositing money, and you will be safe from such scams.
  • Forex strategies for sale. There are hundreds "successful" Forex trading strategies selling on the Internet. Many traders tend to believe that they can spend $300 on such a strategy and become rich with it. In reality, the best thing money can buy is education. Strategies available for sale are usually nothing but crap. Not only they will fail at making you rich, they will probably make you lose your all your account. Consider trying some free Forex strategy and developing your own based on it.
  • Forex e-books for sale. Overrated and hyped e-books with a lot of marketing and little use (if at all) are the actual problem of many industries. Forex e-books selling at ridiculously high prices and promising to tell you "the best kept secrets of the millionaire traders" are nothing but wasted money. You would be better off losing that money in Forex trading, trying to find your own strategy and getting some first-hand market experience. Besides, there are many free e-books available for download.
  • Scam managed accounts. Some people like the idea of Forex, but do not like to trade in this market, they prefer to invest in it. That is where managed accounts come to play. It is a good idea to have some company or a private trader to trade for you for a share of profit. But unfortunately, there are also con artists here. They will just take your money and disappear. Some scam managers will probably even pretend that they are really trading and will show you some profit, hoping that you will deposit more. Do not fall for such scams, thoroughly research your manager or better invest in some old and reputable fund managing company.