Avoiding money fraud
You may hear get rich quick promises in late night television ads or information. You may also see promotions about ways to get rich quick on the Internet by trading in foreign currency.
Don’t believe any of them. Forex trading is risky and requires a significant amount of time to learn to do properly.
Avoid getting caught up in Forex fraud schemes. Forex scammers use many different types of phrases to lure you in and make you think you can get rich quick. Your parents probably told you if something sounds too good to be true, it probably is. Remember that phrase as you read any offer to trade Forex.
You must be even more aware of scams if you suddenly acquired a large sum of cash from an inheritance, insurance settlement, or retirement funds that could attract fraudulent operators. Once the money is gone, it’s very difficult, if not impossible, to recover.
Anytime someone encourages you to trade Forex with a claim that there is little or no financial risk, it’s false. Here are some common claims the Commodity Futures Trading Commissions has seen in fraudulent scams:
- “We promise to recover any losses your have.”
- “Your investment in secure.”
- “With a $10,000 deposit, the maximum you can lose is $200 to $250 per day.”
Any attempt made by a company to downplay the risks you will take trading Forex is likely a scam. Don’t trust anyone who tells you that the written risk disclosure statement you see in the mailing you received or on their website you can reading is just a required formality of a government agency.
You must accept that the currency markets are volatile and risks can be substantial, especially for inexperienced customers. Scammers look for unsuspecting folks who will deposit their money and quickly lose it. The scammers protect themselves from losses by putting automatic stops in as your money disappears.