People are seeking various means to earn quick money through untested or even unpracticed methods. Whilst there are those who went through legitimate means, undeniably there are also those who ventured on defrauding innocent and often unsuspecting individuals. The foreign exchange market, with its great potential, is a favorite target of these.
Between 2001 and 2006, there have been eighty cases of Forex scams prosecuted in the United States alone. In those cases, 3,000 customers approximately lost 350,000 U.S. Dollars. The Wall Street Journal reported that an individual Forex scam victim loses an average of about 15,000 U.S. Dollars.
Many experienced traders have learned ways to identify Forex scams. It is usually the new traders who are most vulnerable. However, with the proliferation of online, non-bank portals – greater problems arise as such scams are more difficult to control.
Sadly, whenever there is an opportunity to earn large amounts of money, there will always be people who are eager to jump right in and be potential victims of Forex scams. Scams are often difficult to distinguish from the legitimate ones. Here are some of the signs to help you identify them:
• Too-Good-To-Be-True Claims
It is normal for various websites, that promote forex products or services, to offer you potentials to make money. That is what forex trading is basically about. However, if you receive promises such as making a million of dollars overnight, whoever you are and whatever work you do, do not entertain it because it is most likely a scam.
• No Guarantees Offered
Every product – may it be sold online or anywhere else – should have a “money back” guarantee. A legitimate one offers a “no questions” guarantee rather than something that requires you to follow certain instructions before you can qualify for a refund. Following such instructions may require you to invest more money than you have.
You can trust purchasing downloadable product such as an ebook or expert advisor in Clickbank. If you have concerns about getting refunds, Clickback is the best site to buy such products.
In membership or service sites, you should see to it that there is a term in which you can opt out at any time without incurring further charges. Avoid signing up for sites that would lock you up in a contract for 6 or 12 months.
• Bad Forum Reviews
It is common to see products showing testimonials from various satisfied customers to make sure you can look for evidence attesting that they are truthful. Genuine companies will provide you links or will lead the way for you to check the testimonials.
What matters most is not the good reviews but the bad ones. Whatever product it is, there will always be a negative comment on it. Find these comments and read through if the products truly have some problems or they are not just happy because they didn’t earn a million dollars overnight. Many forums will actually tell you which products are scams and genuine.
• Screen shots of trading accounts showing huge earnings
It has also been a standard practice among Forex sites to show screenshots of their trading accounts to convince you that their systems truly make money. Using Photoshop, it will be difficult to tell if it was faked or not. So, it is advisable to ignore these screenshots. Even though they are 100% genuine, it is still not an assurance that you will achieve the same results.
