Tuesday, 23 September 2014

FAQ - I heard Forex is a Scam?

When it comes to investments it's never easy to make money.  Those that do not well often are looking to lay blame.  It's easy to say this or that is a scam.  It's like branding investments across the board a scam.  Lets face it. There are many scams and frauds in the investment world.  Ponzi schemes, failed real estate development, fraudulent developers, bad stock tips, etc.  Heck, even your cousin's husband might run off with enough money.  What I am saying is that nothing in this world is perfect.   There are all sorts of frauds and scams.  You have to be careful no matter where you put your money.  Same goes with Forex.

There are many get rich quick schemes, be it automated trading strategies, some online broker offering too good to be true sign up bonuses, follow trader type of services that boast incredible results, signal services, etc etc.    I have come across a few shady brokers in my time.   Some have "dealing desks"  which you might think is a good thing when in fact the dealing desk will trade against you!  Others will manipulate the chart data, miss take profits, or stop losses.

Just like with any other investment you will want to beware of too good to be true offers and find a reputable broker that an experienced trader is using.