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

[Pettyeve]

I was thinking forex could be freerer from frauds and fraud related issue. I have not been scammed before so I might not be too sure on what it means and how it works but I know too well that scams can also come from the brokers end too.

 

[Daisy]

I was thinking forex could be freerer from frauds and fraud related issue. I have not been scammed before so I might not be too sure on what it means and how it works but I know too well that scams can also come from the brokers end too.

Scamming in forex can come very sneaky and you might not know about it. Snipping can be something that is considered fishy in forex but it happens all the time. You get a higher rate than what you want to order. Sometimes, not allowing you to cash out fast enough or in emergency situation is scamming. Also, changing tos all the time to confuse you or trick you is also cheating. There are many hidden charges sometimes from some brokers as I've heard from traders like software manipulation and such.

 

[Decub]

Personally, I don't think not allowing you to cash out easily as you want could be considered scam, only scam when it is prolonged over a much higher period of time than necessary. Though I've heard issues where some traders where denied cashing out in the wake of the LR problem.

 

[Pettyeve]

Scamming in forex can come very sneaky and you might not know about it. Snipping can be something that is considered fishy in forex but it happens all the time. You get a higher rate than what you want to order. Sometimes, not allowing you to cash out fast enough or in emergency situation is scamming. Also, changing tos all the time to confuse you or trick you is also cheating. There are many hidden charges sometimes from some brokers as I've heard from traders like software manipulation and such.

If they don't allow me to cash out fast and quick as I want but they allow me cash out, I will still be trading with that broker. I can give a broker three business days to clear my request but I get it in less number of days.

 

[sindarin]

Scams are all around of internet even not for forex, also in offline business something like this is really exist, so don't be surprise if in forex especially in spot has scammers around because the fast movement of money and also big huge money that circled around.

 

[Decub]

I really find it difficult to understand the possibility of getting scammed in Forex if it's not coming from the broker's end. Unless the trader shares his combination, it might just be difficult for him to get the knock of scammers because virtually everything in there are done within.

 

[riki143]

Check your broker in google. Just type in "forex broker scam list" and you will find it.

 

[Svetlana Loboda]

Check your broker in google. Just type in "forex broker scam list" and you will find it.

I don’t think it’s enough; in this case: review sites are very useful like FPA. Broker selecting is an very important issue.

 

[Tom Latham]

No doubt; scammers are available here and there but we traders need to move here carefully! We should avoid all kinds of 3rd parry service and need select the regulated FX brokers!

 

[Eduardo Lucchese]

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.

Very informative post. Everyone has to be careful.

 

[Gito Dinev]

Forex is a legitimate market. However, there has also been a rise in forex scams. You have to be careful with which platforms you invest your money.

 

[Mark Dahl]

Forex is not a scam but fraudulent individuals and brokers are exploiting resources from traders.

 

[maxlvg]

When there are scams happening all across the globe, I think it’s normal to expect scams in the forex market as well. But there is always a way to stay protected from these scams. Look for red flags in the starting before it’s too late to act. Try not to fall for deals that are far away from what you know.

 

[Alexander Hudson]

If you want to analyze the market technically, you have to use indicators like RSI, stokistics etc.