Don’t Be Scammed
It’s easy to get burned by forex scams on the Internet. Some of these web sites look perfectly legitimate and it’s hard to believe they are nothing more than a trading platform designed to steal your money.
If possible, verify the geographical location of the forex broker. The financial industry is relatively unregulated in certain parts of the world, so avoid committing your money and personal details unless you’re absolutely convinced it is safe to do so.
By the way… even Swiss brokers should be closely scrutinized.
One good indication of reliability is if government regulations require the brokers to segregate all customer funds from the operational funds of the business. Your money would be put in highly-reputable banks and the funds only withdrawn upon specific withdrawal requests.
Buyer beware… it’s relatively easy to create a fake regulatory body using cyber-space techniques. Look at how easy it is to phish unsuspecting buyers using e-mail ploys.
Common sense is not necessarily common… so be extra careful of the following:
- It seems to good to be true
- Claims to predict or guarantee large profits
- The vendor downplays the investment risks
- Claims to trade in the “Interbank Market”
- Obvious targeting to various ethnic markets
Even in the United States you must be careful because despite the appearance of regulatory protection… there is considerable manipulation of the trading markets… especially those sanctioned by the Commodity Futures Trading Commission.
