The Forex market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose. There has been a sharp rise in Forex trading scams in recent years and we want to give you tips on how to identify potential fraud. Though there is no guaranteed way to avoid forex fraud, it is possible to trade, minimize the chance of becoming a victim of a forex scam, and prosper in the market providing you remain diligent and alert in every decision you make.
SIGNS OF POSSIBLE FRAUD
- You are lead to believe you can profit from current news already known to the public.
- Contact made through word of mouth referrals or emails from friends and relatives, community organizers, churches, or social groups.
- People asking you for personal information such as your name, phone number, email and home addresses.
- Promises that with Forex there is no “down-turning market”.
BEFORE PARTICIPATING IN FOREX TRADING, ASK MANY QUESTIONS!
- Ask for the details about Forex trading and the obligations if you participate.
- Ask for the firm’s and individual’s performance records.
- Ask for all information in writing. Do not rely on oral promises or statements
- Check all information you receive to ensure that the company is and does what it says it does.
- Ask for a written risk disclosure statement.
- Seek advice from an independent and licensed financial advisor or consultant whom you trust.
IF YOU DECIDE TO PARTICIPATE IN FOREX TRADING
- Do not deposit more funds than you can afford to lose.
- Do not mortgage your home or cash in your savings.
- Do not trade on margin unless you understand it. Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.