Forex Scams
80Despite many brokers claims to the contrary, trading foreign exchange successfully is not an easy thing to do. FX trading is at best a risky business and at worst, a scammer’s dream come true. The Commodities Futures Trading Commission (CTFC) has seen a marked increase in the amount of foreign exchange scams over the last few years as forex trading has become more and more popular.
There are many companies claiming to have a foolproof way of making money with one system or another and while some of those systems have a basis in fact, even the most well-researched, well developed system cannot take into account the vagaries of the market place.The Division of Clearing and Intermediary Oversight (DCIO) recently released an additional advisory aimed at protecting consumers from this ever growing problem, but the CTFC has some basic, solid advice regarding becoming involved in Forex trading:
- No matter what you're told, Forex trading is risky.
- Don't be pressured into an immediate decision.
- Use common sense.
- Get everything in writing.
- Check with the CFTC.
- Seek advice from an accountant, lawyer or an independent 3rd party.
- Don't invest more than you can afford to lose.
- Don't mortgage your home or cash in your savings to trade Forex.
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As a general rule, it is best to avoid any companies claiming that Forex trading is easy, guarantees results or encourages you to make small deposits and use high leverages. Regardless of how well educated you are, investing a small sum in FX trading is likely to end in losses. Some recent scammers who have been caught by the CTFC include:
- Lake Shore Asset Management
- Lake Dow and Ty Edwards
- Ben Ouyang
- Emerald Worldwide Holdings, Inc.
- Foreign Fund (First Bank)
- Equity Financial, Shasta, or Tech Traders
- IBS/IMC
- Kevin J. Steele
- Nawab Ali Khan Ali
- Sun Platinum
- Worldwide Commodity CorporationGraystone Browne Financial
- Sterling Trading Group, Inc.
- STG Global Trading or QIX, Inc.
- Universal FX, Inc.
There are case reports available from the CTFC website which are updated on a regular basis. In the meantime, if you have lost money in dealings with any of these companies or individuals, there is a contact page at CTFC.
One of the most disturbing recent trends is the amount of Forex sites claiming to be helping traders when in fact the opposite is true. Forexbastards.com claim they are there to help the trader distinguish the “good guys from the bastards.” Here is a video clip uploaded by Nick B, demonstrating how effective they are.
It is fair to say there is a LOT of disinformation being bandied around by the forex brokers. The CTFC website is perhaps the only guaranteed reliable source of information. Even the so-called anti-scammer’s sites appear to be just as populated with this type of information. Before beginning FX trading, remember these points:
- It is NOT possible to make money starting with a small amount of capital.
- Using high leverages is almost guaranteed to end in losses.
- There is NO foolproof way of making money on the foreign exchange market.
CTFC resources
Forex Resources
- Quatloos
Tony the wonder Llama (Brad Christiansen)runs an anti-fraud website that includes forex scams. - Forex Trading Guide
- Forex Brokers
- Forex Trading Systems
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Thanks. I removed the comments box after some unwelcome comments:)
I have always been a little scared by Forex Guide. Now I am glad I was distracted long enough, for you to caution me with your wisdom
Thank you
My pleasure Mr Marmalade. My best advice is to avoid it unless you have LOTs of money to play with.
It's possible to make large profit with small amounts of money, but you won't get a million out of 1$...
It is also possible to win the lottery.
>It is NOT possible to make money starting with a small amount of capital.It is neither possible with a huge amount of capital - except by chance - if you lack knowledge of how the market REALLY works. You will end losing everything just a question of time.
>It is also possible to win the lottery.I never play lottery the prbability edge is near 0. The Stock Market is more like a Casino than a Lottery. In fact for ignorant people it is much worser than Casino, for Knowledgeable people it's better: the reason is the 9/10 losers make the 1/10th winner's gains :)
I agree. It is not possible to make money on a small scale. I do spend two euros a week on the euro millions - LOL I live in hope, but the chances are 76,000,000:1
So, not that much hope.
I hope you win the lotto, Mark Knowles!
Thanks! Me too.
Seems like it's just like anything else out there that you'd invest in. Be careful, do your due diligence, don't expect a miricle, and never invest any more than you are comfortable lighting a cigar with.
Scam.......really scary in out there
do you know anything about easy-forex.com? they recently stopped dealing with western union. do you know why?
A website was recently published that uncovers scams that took place by Easy-Forex in Israel in the years 2005-2007 which robbed the money of many of their clients through false forex trades.www.easy-forex-warning.com
The information presented in this website is based on a book that is due to be published. The book is backed-up by dozens of taped discussions that were transcribed after being tapped during the years 2005-2007 with Easy-Forex personal and customers.The website starts by explaining how Forex companies makes money and why some of them have conflict of interest with their customers. It then explains how easy-forex rewards their agents- this is something crazy.Next it brings transcripts of 3 discussions: The first is with a former easy-forex agent that opens his hart.The second of an easy-forex agent talking to a customer: This discussion shows how this agent is trying to deceit a one of his client.The third transcript is with a victim, one of hundreds, of this agent.The scam that was uncovered took place in Easy-Forex Israel. Yet, it is very much possible that the outraging rewarding method of Easy-Forex to their agent (called "net deposit") took place also in other places in the world.
I work with easy-forex for the past several years. My Business is practically securing all international transaction through their international branch. The claims here sound hilarious. I never had any problem with them nor with any other forex agency. It looks like an unhappy customer who tries to revenge his loses.
cant believe i just found your hubs, Mark. nice work. thanks for all the info.
pls. am a practicing trader from nigeria can u tell me a broker to go with for my real account of $500, what levrage to use , lot size and the take profit for a day.
can i find a straight forword and compleat e book to read and download for my trading succes.
thank you.
Very interesting hub. Nice work.
To say that you can't make money off of the Forex with a little bit of money is completely incorrect. This is what nano-lots are for. Becoming a millionaire off of a little bit of money is not going to happen, though. And you're right, Forex trading is not easy at all.
Any company worth their salt should offer a trial of there Expert Advisor for testing. BAck tests are useless and can be easily manipulated. If you want to know what an expert advisor is going to do on your account you need to run it on your own account. I use ForexPIPZen because it was the only company I found that let me just download and use their EA for 30 days or so without all the signup and creditcard hasseles.
This EA is worth a look for a serious trader. THe LITE Version is an intro product isuppose but the other one rocks.
Please could you check forexautomoney and let me know whether it is safe to join its membership.
Thank you,
Reg
I agree, Forex is not easy. Anyone claiming that it is just a matter of pivot points is an absolute muppet and I mean Peter Bain.
"No matter what you're told, Forex trading is risky." Truth! 85% of people teaching and selling whatever guide on forex trading online are not actually trading it with profits or making the big money associated as claimed.
I understand there's huge money in forex but only for the Big players(brokers) including banks. Goodluck to Big and small players all the same.
Forex is as difficult as any futures trade. It's hard to know the future. What goes your way for a short while can go the other way for a longer while. I have done some trades myself and have some issues with the forex site that I have used but it isn't necessarily all a scam. Stocks are also risky but people jump right in thinking it will always go up until it goes down 700 points in one day. If you trade in currencies, do your homework! And leave the bird watching for another day. Currency trading is Lion Country!
I agree that forex is risky. I started three years ago paper trading. I was losing as much as $20,000 a day. I have since honed my own strategy and do just fine. Moral of the story: be captain of your own ship. You have to learn and understand what you are doing.
Most months, I make better than a 15% return, but that came at a high price. I've had my account wiped out twice, so I paid my "tuition" and I'm still very respectful of the market and what it can do to my money without warning.
This is really a scam, because regular equal income is not possible in the forex trading. Some times a trader has to face some losses> This is true that forex market is a place where good money can be generated but not regular.
William F. Torpey Level 2 Commenter 4 years ago
Your Forex Trading Guide is a very impressive hub. Looks to be complete and unabridged to me, but I found no comments box there. I'll be on the lookout for scams. Thanks.