Foreign exchange fraud...the reality of scammers in forex

[davidjss]

Currency trading has become the fraud du jour as of early 2008. But the market has long been plagued by swindlers preying on the gullible.in a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen – for the personal benefit of the con artists.In August, 2008 the CFTC set up a special task force to deal with growing foreign exchange fraud. In January 2010, the CFTC proposed new rules limiting leverage to 10 to 1, based on a number of improper practices in the retail foreign exchange market, among them solicitation fraud, a lack of transparency in the pricing and execution of transactions, unresponsiveness to customer complaints, and the targeting of unsophisticated, elderly, low net worth and other vulnerable individuals.The foreign exchange market is at best a zero–sum game, meaning that whatever one trader gains, another loses. However, brokerage commissions and other transaction costs are subtracted from the results of all traders, making foreign exchange a negative-sum game.Frauds might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits, improperly managed managed accounts, false advertising,Ponzi schemes and outright fraud. It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry. Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $350 million. From 2001 to 2007, about 26,000 people lost $460 million in forex frauds.

 

[Cutiekc]

Thats really painfull to loss such amount of money now i think such thing can hardly happen though there are still some individuals who go to people in an open place advising them to invest with them in the name of getting good profit,perhaps they do escape with the money,now there are so many regulated brokers.

 

[Nagilover]

It is just copy-paste from another location only but this article is average article as fraud had everywhere in the world Forex isn't avoid from this and I almost to got scammed from advertising about dream money makers too luckily as my big sister don't allow me to buy haha.

 

[brokenblade]

Fraud is nothing new. Whenever and where ever money is involved, there is a risk of fraud. It is our responsibility to guard ourselves from being taken advantage of. It sucks that it has to be that way, but we have to take the necessary steps in order to make sure that we don't become victims of fraud. Of course, we can still become victims if we do everything we can to avoid the problem as well.

 

[kalpeshmkm]

I don't think there is any fraud activity in Forex trading because with Forex trading you can make huge amount of money and so many traders are making it but yes where money comes scammers will also there so we need to aware with scammers and real trader so we can find best dealing place.

 

[budado]

Just choose the right broker site and I'm sure you going to earn good amount of money in forex trading. The one that is a scam is the broker site and not the forex as a market. I earn good amount of money in forex already. Although that good amount is not really a high amount but compare to other source of income I can say my earning in forex is far much better.

 

[rexway]

That is why we need to do some analysis with our broker and chose them this will really help in terms of fruad person like me if the broker has been long online I dont think nothing can even drive me to their site .

 

[freddymyers]

You can see fraud anywhere, specially in this kind of investments since it entices individuals to earn very fast..loss very fast also..nice post!

 

[PROPENSITY100]

I don't think there is any fraud activity in Forex trading because with Forex trading you can make huge amount of money and so many traders are making it but yes where money comes scammers will also there so we need to aware with scammers and real trader so we can find best dealing place.

Yes Forex is a potential market and provides us a great opportunity to earn money. This is being realized by more and more people as they are entering Forex trading making it the top traded financial instrument in the world with a daily traded volume of over 4 trillions $. However every newbie should understand that Forex is not an easy source of money and thorough learning is required to make money in it.

 

[eddiej]

Scammers prey on newbies who don't know a lot about the market. They lure them in with promises of wealth and instant gratification. It's so sad really. :c My tip for anyone who's starting out: If it's too good to be true, it probably is.

 

[Markllee30]

I don’t believe this, do you know forex daily turnover trillion, again I say daily turnover trillion that’s hugs amount in any business. If forex exchange fraud so how to market run yet , in fraud condition any market should be closed as per govt. rules and regulation.

 

[Daisy]

Thanks for addressing such an issue. Even I got fraud in employment, my boss and supervisors will always try to solicit cash or gifts and then fraud the system so don't talk about some non personal things like forex where there is no personal relationship between you and the broker. Even in intimate relationship, there is outright fraud and crimes. I worked for a huge corporation, the largest in the world and the bosses there robbed their employers out right without a blink of an eye. Some people are just a fraud. Thank you for mentioning this and people should always trade with the best and trusted brokers and please avoid fraud cause the topic makes anyone angry.

 

[gkintl]

In any profession, there are scammers who are always ready to prey on the gullible and forex market is no exception. An investor and a trader should always remember the fact that an offer which looks too good should not be trusted. Before entering into any sort of transaction, a trader should validate the pros and cons thoroughly. This would enable him to stay abreast and avoid financial traps. There is no point in blaming the market for our own mistakes in investment or judgement.

 

[Decub]

I don’t believe this, do you know forex daily turnover trillion, again I say daily turnover trillion that’s hugs amount in any business. If forex exchange fraud so how to market run yet , in fraud condition any market should be closed as per govt. rules and regulation.

Forex is just like any other financial market with the tendency of crime. Scams come in so many ways ranging from brokers scam to that of scamming the individual traders by phishers that mainly go through payment processors. Any one can also fall victim to this especially those that are always sharing passwords with other online earning platforms.

 

[jackcm]

Forex is just like any other financial market with the tendency of crime. Scams come in so many ways ranging from brokers scam to that of scamming the individual traders by phishers that mainly go through payment processors. Any one can also fall victim to this especially those that are always sharing passwords with other online earning platforms.

I've never heard that kind of scam.

As I see, they force traders to lose by making trades get stopped out or adjusting prices so that stop orders will get hit. After all, those brokers get all the money trader lose.

 

[hasan87]

It is really hard to make comment about this article. Actually I don't know weather Forex is scam or not. But sometimes it seems that Forex may be a scam when a trader lose a big amount of money in spite of trading well. But those who get success in Forex, won't think that Forex is scam or fraud.

 

[sindarin]

Just choose the right broker site and I'm sure you going to earn good amount of money in forex trading. The one that is a scam is the broker site and not the forex as a market. I earn good amount of money in forex already. Although that good amount is not really a high amount but compare to other source of income I can say my earning in forex is far much better.

but we don't know if that broker we choose is really transparant, if you want the best way is through bank, they are the most transparant, but i also still believe some regulated broker, because i think they also make profit but don't want their client to make complain about them.

 

[Daisy]

It is really hard to make comment about this article. Actually I don't know weather Forex is scam or not. But sometimes it seems that Forex may be a scam when a trader lose a big amount of money in spite of trading well. But those who get success in Forex, won't think that Forex is scam or fraud.

I mean there are ways for brokers to scams you like slippage and such and then they would do weird trick with their softwares. I've heard of fxcm charging hidden charge and then do weird trick with their softwares over night. Also, they will have no cash out during crisis, so that is a worry like LR problems right. There are pamm scams as well. I've heard of a lot of loss in pamms.

 

[Decub]

I've never heard that kind of scam.

As I see, they force traders to lose by making trades get stopped out or adjusting prices so that stop orders will get hit. After all, those brokers get all the money trader lose.

OK, it is done this way and mostly affected by those who use one password in all that they do. They send you a phishing mail with a link and once you click on it, your PC automatically downloads the spamware unknown to you (especially if you do not have a strong anti virus). It comes in form of key loggers and once you access your trading account, your password records on the spamware which they can retrieve at will and access your account easily. If you are using the same password for your email address, they will have access to it as well and can easily withdraw since the code that will be sent to your mail during withdrawal will be visible to them.

 

[Daisy]

Does this involve pamm and managed funds? I'm sure those account for huge losses as well. I mean a trader might lose a hundred dollar and no biggie but some rich people put like hundred of thousands in pamm and they actually think those managers can double or triple their money and its more like total wipe out in one month as most of them have said. I think pamm and manged funds and hyips are full of frauds and losses. I do not use them and do not encourage anyone to use them. Rather just trade for yourself or copy traders and at least you can see and still control your money.