There has been numerous reports of news stories about big time companies scamming people out of their hard earned money in the Forex trading industry. From mismanaged trading accounts to false accusations on those magical EA or forex robots. This is one of the reasons that new regulations are coming down so hard is because of the scammers that are not willing to learn to trade but instead they would rather take someones money.
There is a story about Beau Diamond who was operating a Ponzi Scheme. A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from any actual profit earned. So in other words he was not making money from investing at all but from making false claims and getting people to give to him.
I have spoken to many traders that have been scammed or at least paid for something related to Forex investing or training and have felt like they did not get their money’s worth.
The point is what can you do to avoid being a victim of a scam?
I have some suggestions that may help here:
* Do your research on the company and look for product reviews (but be careful with that some of them are scams as well.)
* Call and talk to some of their current and past customers.
* Call and talk with them on the phone or email and build a relationship with them. Scammers generally are not concerned with your well being and will only tell you what you want to hear so that you will give them your money.
* Look at the claims of the product. If they guarantee that you will have a certain return, that is a scam. There are no guarantees with investing.
* If you can’t TALK TO a REAL PERSON DO NOT INVEST YOUR MONEY. There are numerous websites with amazing get rich quick trading programs and yet they don’t give you your contact info.
I was online at one of those sites that promised all this money to me. I asked the question “If this is guaranteed to make me money in a week, just give me the program now and I will pay you in a week.” But there was no person on the other end, just a robot and of course they would not work a deal like that with me because they were scammers.
There is some additional great tips to watch our for at this article at Forex Magnates.
The point is make sure you know what you are doing before you trust someone enough to give out hard earned money to people.
Please share with us some other information that could be helpful to your fellow traders or share a situation where you came across a website or company that was not legitimate. By sharing here you can help many of us avoid a future error.
The video below is an example of a Forex Scam. If it was that easy don’t you think everyone would do that? Get Real.
We actually purchased this software to run a test and make sure that were not reporting it as a scam when it really worked. We were assured rather quickly that it is definitely not a legitimate trading system. Just another Forex Trading Scam.
Winner’s Edge Trading, as seen on: