In its 2009 report, the Foreign Exchange Committee at the Bank of International Settlements estimated the total numbers of forex related transactions to be $3.2 trillion. With this type of money floating around an unregulated spot market that trades over the counter with no accountability, forex scams can only increase with the lure of earning fortunes in limited amounts of time. Many of the old popular scams have ceased, due to serious enforcement actions by the Commodity Futures Trading Commission (CFTC) and the 1982 formation of the self-regulatory National Futures Association. However, many scams still exist, and new ones keep arising.
Forex markets are among the most active trading markets in the world, with participants ranging from large banks, to multinational corporations, to governments, to speculators and even to a small fraction of individual professional traders. The instability foreign currency prices can result in heavy losses for an investor. However, this is not the only risk that investors have to consider. Investors also need to be aware of forex scams designed to rip them off. The highly technical nature of the retail forex industry, off-exchange forex trading, and the loose regulation of the market can leave retail speculators susceptible to forex frauds.
The scammers capitalize on the human nature of wanting things quick, easy and convenient to lure new customers with easy and quick profits in forex trading promises; but unfortunately, the only people who are going to make quick and easy money are the scammers themselves and at your expense of course! Another way to avoid forex scam is for you to keep away from any website that claims to have a secret trading system. A lot of forex traders believe the fact that there is a holy grail or secret trading method that will make profit for them overnight.
A number of traders have suffered immense loss due to the scam operation of online forex brokers. They have devised very clever ways to cheat people and steal their money. The new laws and regulations for foreign exchange brokers have forced many of the top rated firms in the world to end commerce with American brokers and stop any sort of dealing. This is very alarming, because some of the bigger companies have created specialty subsidiaries. Before investing their money with any broker, traders need to analyze the financial industry of any country. If the government has set strict rules for the regulation of money, then it is relatively safe to invest the money.
It is very essential that you study and access the financial history of the any company, before investing your valuable money into it. This is a matter of your savings, which you have earned with a lot of perseverance and hard work. So try to double check the background of the brokers who are operating. You should not fall prey to the written promises and deliverable that have been offered by the brokers. You should make note, to never take a chance with your financial transactions. After analysis all the details of the forex broker, if you find any link that is doubtful; stay away from that investment. Taking risk on your earning is not a smart way to go about. Try to look for other reliable sources.