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Forex Scams

The forex market is largely unregulated and along with a substantial increase in retail trading, there has been a proportionate increase in scam artists, bent on parting a trader from his money. Forex, like any other investment, has the potential to lose money as well as make profit. The fast paced nature of the market and high leverage offered means that a $10,000 investment can be wiped out in a matter of seconds. The U.S Commodity Futures Trading Commision (CTFC) has witnessed a sharp rise in foreign currency trading scams in recent years and advises potential customers to be aware of the potential for fraud. Some claims to be wary of are these type. Anyone making statements like these, is probably best avoided:

• Whether the market moves up or down, in the currency market you will make a profit.
• Make $1,000 per week, every week.
• We are out-performing 90 percent of domestic investments.
• The main advantage of the forex markets is that there is no bear market. We guarantee you will make at least a 30-40 percent rate of return within two months.
• With a $10,000 deposit, the maximum you can lose is $200 to $250 per day.
• We promise to recover any losses you have.
• Your investment is secure.

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