How To Avoid Forex Trading Scams

Forex Trading itself is not a scam. In fact, it’s a very lucrative market with trillions of dollars of currency traded daily. The problem lies in the market not being regulated strictly. Many scammers are coming out of the wood works to take advantage of this. Don’t let scams scare you away from the market but instead make you more mindful of who you do business with. Here are a few ways to catch a scam.

There are many things you can do to verify how legitimacy of a company even before you talk to them. First, you need to do your research. Check to see if they have a website with the proper disclaimers, risk disclosures, privacy policy, etc. They also should have a clear contact page and terms and conditions page as well. Check also to see if they have up to date content and are actively engaging in the business and have not just thrown up a website.

Is the company claiming outrageous results? If so they are probably scammers. With the Forex Market, as in all trading, there is no “Holy Grail” way to make money. It takes a lot of hard work in studying and coaching. In addition, always avoid HYIP (High Yield Investment Programs) and Ponzi schemes, people get ripped off in these all the time.

Does the company you wish to do business with offer transparency?

* Ask to see client success stories or testimonials. These are usually a good way to see what you are buying.
* Always ask to see documented results. Forex and futures trading is easy to keep track of. A company doesn’t have these they are either a scammer or an unorganized business you don’t want to be involved with anyway.
* Is it easy to communicate with them? Usually if a company is offering you multiple ways to get in contact with them the better off you are. Look for phone number, email, website contact form, and even a fax. Call them and see if they answer and how they answer the phone.
* Do you see a real person? Most scammers don’t like their face out there. If the company you wish to deal with has a photo or even a video of themselves the better off you are.

Finally a great way to catch a scammer is to ask if they are willing to talk to a third party such as your attorney, accountant, or investment advisor. If they are willing to talk to these kinds of people they are usually valid offers. Keep all this in mind when looking into your next forex trading investment.