Scams related to the forex are on the rise and has increased manifold, the CFTC or the Commodities Futures Trading Commission reports. The CFTC has warned consumers to be cautious of solicitations that look very tempting. We often get to see newspapers and banners screaming out on your face promising to make you a millionaire within a short time. These are scams and one thing that must be kept in mind is that there are no shortcuts to riches, at least not astronomical riches.
There are many websites that urge you to sign up for their programs and assure you of “guaranteed” returns if you trade currencies online by surfing their website. It is not uncommon for websites to claim that it can help you make profits at 12% per day. These websites also claim that the “admins” of such websites are experts in forex trading and can help you to earn profit that is astronomical. Such claims are hilarious and if this is really true, a forex trader would be making huge profits every day. This is basically a utopian concept. If we go a little ahead and calculate, say an individual has USD$1 million to invest. If we go as per the advertisement, he would be making a profit of USD$120,000 every day!
Another form of forex scam is that a company will show you their company records, graphs in particular to impress you with their performance. You may get zapped by the “rising” graph lines. It may be mentioned here that these days, photoshop (image editing software) is very much in use. There are many companies that manipulate their track record only to trap consumers. If you are unable to identify their motives, you may be ripped off your hard earned cash.
Updating yourself regularly and becoming acquainted with the details of forex trading is important as learning is a never ending process.
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