I decided for today to write a general article about forex scams. Over time, I might dedicate a separate article for each one. Many scams can be compelling or seem to be very legitimate, but they just take advantage of traders seeking shortcuts in the market. I was inspired to choose this title by the old warnings on cigarette packets. Of course, nowadays we have pictures of rotten teeth and toes, but that’s a totally different story.
- Forex Robots also known as EAs (Expert Advisors) sell from around $100 to upwards of $1000. For this ‘low’ price you get software that is supposed to trade so profitably that it is able to increase your account tens or even hundreds percent per month. No skills and no brain are required from your part. Just turn it on and watch your account grow
- Forex Signal Sellers just like the one mentioned above, the difference here is that you have to actually place the trades that you receive via email or text.
- Forex Managed Accounts is one of those scams that appears to be very legitimate. After all, people have had their money managed in various markets from stocks to commodities for very long time. Famous money managers top the Forbes Rich List every year. So where is the scam ? If the traders who want to manage your money are nameless and faceless, hiding under such texts as ‘team of great traders with XX years combined experience’ they are scams. If they say they’ve been traders for a long time but can’t provide you with any verified track-record, they are scams.
- Forex Brokers beware of those unregulated brokers with websites written in bad English who try to entice you with deposit bonuses or contest prizes.
Trading is a hard and trying business where the tuition costs can be very high. Don’t make it even more expensive by lining the pockets of all those scammers out there.