subject: How To Avoid Forex Fraud [print this page] When looking for a forex trading broker make sure to choose a broker that is registered with the government in which they do business. Before you sign any contract with them or send any monies make sure you verify that they are indeed registered.
The task of managing your risk is the responsibility of the user not the broker. Companies that offer or promise little risk or guaranteed profits and stuff like that is a a sure sign that something is not right.
Common sense goes a long way when trading forex. Before making any trades always know your risk and do your homework so you know exactly what you are doing and why.
Stay away from companies that trade in the interbank market because the currency transactions are negotiated on an unstable network of large companies and financial institutions. Nor is it advisable to transfer or send cash through the mail or online and therefore you will have more certainty that it will remain safe from online forex scams.
Whenever a company s using high pressure sales tactics please beware for possible fraud as nobody should make you feel rushed. Remain skeptical always and do not rush to jump into any sales presentations until you have peace and understand the set of circumstances you are entering.
It is wise to find a trusted company known as a authority in the industry and stay away from companies that seem shady. Newcomers often fail victim to forex scams because they are accepting offers they know too good to be true.
Apply common sense and use discretion always not only in your trading but in who you trade with you will have nothing to worry about. You work hard for your money and you want to protect it. Thinking like this is also going to help you become a good trader.
To be a successful trader all you need is some discipline, a good head on your shoulders, a good mentor and some hard work. While the reality of fraud is a possibility and yes you do need to be aware of what you are doing if you have some sense about you then you have nothing to worry about it.
