In recent years, the investor is a higher number of investment opportunities and offerings have seen. While the complexity and success of these investment products vary, technological innovation has made the Forex market areas of greatest growth. Many Forex brokers market leader reported 500% increase in the number of new retail customers. However, growth in the foreign exchange market has been accompanied by a sharp rise in foreign exchange fraud.
Many of these Forex scams are promoted on radio, television, newspapers and the Internet. Investors who are victims of these systems lose, and often their money. As an illustration, consider the facts of a recent case involving fraud, Forex and its consequences. W an opportunity currency trading was told by an infomercial on the radio. K, the owner of a Forex asset management firm, spoke during the infomercial viewers promising profits with minimum risk. After seeing the infomercial, contacted WK, and later presented at a seminar of K and his company. The seminar was so convincing that W wrote a check to K for $ 100,000.
A few months later, W received statements (which were false) from the company K reflects a return on its initial investment, $ 100,000. Then W visited a seminar and decided to invest more money. W took a loan and invested another $ 800,000 in K's Forex trading operation. Shortly after the second investment of W, the Securities and Exchange Commission filed a complaint against K and his company for inclusion in a conspiracy to defraud investors. K's corporate assets were frozen, including $ 900,000 invested by W. A receiver was appointed, cheated to distribute the remaining assets of the company for investors K. The assets were distributed on a pro-rata no statutory preference for one of the victims. Since fixed assets are not sufficient K to be to satisfy all requirements of the investor defrauded, W received only $ 22,000 of the $ 900,000 he invested.
As a whole book could be written about the various tactics and methods used by fraudsters Forex, in this article I will identify the most important warning signals that prevent victims of fraudsters Forex should focus.
1st Promises little or no risk
If you are a company that claims to encounter a forex strategy trading currencies that bear little or no risk, have developed stay away. The reason Forex trading can be very profitable, because it is also a very high risk of loss. The Forex market is very volatile and without proper management of money, the investor can lose most or all of their assets in a few days. So, individuals and companies, which claims that far to make the market realities, as is the risk of less Forex trading, are really your money.
2nd Guarantees of big profits
Beware that ensure business high profits in the Forex market. These so-called "guarantees" are mere tricks to believe to investors that their money is safe and they are certainly big profits to win. Such claims are simply wrong, because even the best guarantee professional traders they can not benefit every day. The foreign exchange market, as most financial markets is very unpredictable. Therefore, be careful, such claims and those that do.
3rd Job offers for Forex Traders
Many companies use currency trading employment ads to attract individuals with capital to trade in their systems. Jobs, who often say in newspapers and the Internet, that the company has changed its trading partners for people who teach them how to trade in the Forex market-capital firms. Those who had responded to the ad are convinced by the company that they make a fortune trading currencies participate, if they are in the training of the company. During the training, often on a demo system, the operator asked time and told that to show their demo trading records that have made significant gains, they are ready to make real money is to be a great success. Despite the company's assessment of the novice trader as a brilliant newcomer, no firm capital is provided for the operator, instead of the newcomer is told thrilled to use their own capital base to trade in the platform of the company. In addition to various fees imposed on traders using the platform of the company, the company earns money as a Forex Introducing Broker. Each time the novice trader trades through the company is the system, a good part of the spread charged by the broker and is divided into the coffers of the company. After a few months, the novice trader loses all of its capital and leaves. The Forex firm, with money in the short relay operator beginner moves to new traders eager rich, commercial city of foreign currencies will be provided.
4th Forex is the member firm or CFTC NFA?
Before signing a check and give you your money for a company Forex, be sure to investigate the company. Check whether the trade Forex that you have to do business with the U.S. Commodity Futures Trading Commission or the National Futures Association is registered. Many scammers falsely claim that their companies are registered with the CFTC or the NFA to gain the confidence of the investors perspective. Do not trust anyone, research the company and the context of the parties before the departure of your hard earned money.
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