Common Forex Scams
Forex trading, also known as currency trading, has become a very popular activity recently. More and more people are joining this lucrative market in hope to make Forex scam thousands every month. Since all forex beginners need help, many people have created assistance packages, efwhether it’s in the form of a trading system or a broker discount. However, there are many scams out there, and knowing how to discover a scam bore purchasing it is a very important knowledge.
The first scams are related to forex brokers, more accurately to spreads. Many forex brokers say “no trading commission”, and they are right. However, this no commission promise comes with a very high bid-ask spread. The spread is the difference between the buying price and the selling price at a specific time, and if it’s wide, it means the trader is starting with a heavily losing position. Before entering any agreement with any broker, make sure the spreads are tight.
Another common scam is the low required minimum deposit and high leverage. Brokers try to lure people to sign up with them with promises for trading in high amounts with very little capital. The truth is that the risk with such accounts is extremely high, and it can be wiped out easily. It is not a scam per se, but traders should be aware of this.
Forex automated trading systems are the biggest source of scams, and that is a real shame, because most of these systems are good and reliable. Usually, the scammer is promising a good, completely automated system. When the trader gets the system, he or she discovers that the scammer took the money and left him with nothing. The ways to avoid this are to check whether the system has a good technical support, positive reviews and recommendations, and authentic testimonials on its page. These criteria can ensure a quality trading syste