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The Tell-Tale Signs of Forex Scams
2009-10-14 03:57:01

Usually, it is quite elementary to spot a Forex scam but here are some common ?red lights? you should avoid when encountered. For example, if the offer is too good to be true, it usually is. Nothing, and I mean nothing short of the lottery can make you a millionaire overnight. While the Forex market is a good investment opportunity for anyone to look into, it is not a magic genie in a lamp. Making money on the paper trade is a combination of a good broker, a good Forex interface, market wiles and a lot of research. These four crucial things take time to come together to a formula you can apply to your daily forecasts and investments. Thousands of people a month are getting roped into these scams because they believe the claims written on these web sites. Do not be one of them. In the case of companies that offer Forex investments, never judge the book by its cover and always back up their own claims with a touch of your own personal research. It is because that there are so many online brokerages that offer you the same service, many will try to grab your attention away from the fact that they are a new company with no experience with sweeping statements and giant dollar bills. Read between the lines and you will be all the better for it. Continuing from this, another good way to tell whether you have just received the tip end of a Forex scam is to investigate the company behind it. Good companies have either been around for a long time or have good connections with big named physical brokerages. A good way to tell whether a brokerage or company is legit is to check out how long it has been around. If it doesn?t list out its clients or how long it?s been around, then there might be more than meets the eye here. I personally would not put my money in a company that has just been around for a few months, no matter how ?credible? their claims are or how ?professional? their brokers are. Always look out for internationally known credentials and certifications with detailed reference numbers that you can check out. It is always a good idea to call up your nearest financial governing body and back check these claims. Also, if you can, do a profile check of the company that you are interested in joining; good companies are well known within the trading circles. Never believe testimonials or customer profiles that are written on site. Always look for these type of testimonials ?off site? or even offline. Stretch your research and most of all, speak to people who have been investing in the market for quite a while (a safe bet is about a year or so). These are just some of the ways you can sniff out Forex scams and get you started the right way to the paper trade. Don?t let these scams ruin your intentions to get in the Forex game. Just be wary of the tell-tale signs and you should be well on your way.

Source: The Tell-Tale Signs of Forex Scams

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