Top Forex Scams you must be aware of!

[vivekn]

Whenever there is money around you are going to find scam artists looking to take advantage of the unknowing. Like roaches in the dark, these scammers look to prey on the crumbs. The Forex market is the most liquid of all markets. It overwhelms all other markets in terms of capital moved n a daily basis. As a result, you can be assured that the roaches do not hesitate to come out. Listed below are the top 3 Forex scams.

1. The ubiquitous get rich quick Forex course. If you have been around for any period of time you know exactly what I am talking about. I have literally come across well over a hundred forex course promising riches in no time, "Buy this course and we guarantee that you will make $10,000 a month with only $100 start up money!" Don't believe the hype.

2. The all important "Demo account." I am not so sure that demo accounts qualify as a scam but they can be deceptive. The demo account on a trading platform is not a real benefit. The problem with these accounts are that they are not based in reality. Often, new traders get into a demo account and do fairly well and then wonder why they re doing so lousy with their real capital account. The reason of course is due to the inherent problems that arise when your actual money is on the line. My advice: stay away from demo accounts. Instead, get a quality forex platform trading and start with a real low amount (Start with an account of $100 or less. ).

3. The Forex "Holy Grail." When you read about one trading strategy that can make you a winner 90% of the time or the trading method that never fails do yourself a favor and run the other way. More than likely you have to pay an exorbitant amount of money and then get hit up again and again for more money. The truth of the matter is that no strategy works all of the time or is accurate 90% of the time.



Always remember,when something is too good to be true,it IS.

[ZANI]

Originally Posted by vivekn

...
2. The all important "Demo account." I am not so sure that demo accounts qualify as a scam but they can be deceptive. The demo account on a trading platform is not a real benefit. The problem with these accounts are that they are not based in reality. Often, new traders get into a demo account and do fairly well and then wonder why they re doing so lousy with their real capital account. The reason of course is due to the inherent problems that arise when your actual money is on the line. My advice: stay away from demo accounts. Instead, get a quality forex platform trading and start with a real low amount (Start with an account of $100 or less. The link below leads you to a real quality forex platform trading site that can be started with only $50).

...

$100 or less? wouldn't you run into major undercapitalisation?

and if you're worried about unrealistic capital for your demo account then you should look into oanda fxgame -lets u choose how much u want in your demo account

[mytwopips]

Originally Posted by ZANI

$100 or less? wouldn't you run into major undercapitalisation?

and if you're worried about unrealistic capital for your demo account then you should look into oanda fxgame -lets u choose how much u want in your demo account

There are nano accounts now (~$0.01 per pip). $100 will work just fine for a nano.

[4xStar]

I also think demo accounts can be very useful for practicing trading and getting used to a platform. Later they are useful for 'what if' scenarios when trading live .. like what would happen if I opened 4 positions on this trade and scaled out? If you keep good records, demo accounts can be highly useful both before and during active trading. And of course they are a great place to go & lick your wounds if you have had a day or two of seemingly constant wrong decisions
You can continue practice trading while analyzing what you did wrong...

I'm in the camp of those who consider demo accounts highly useful. However one should not go from a demo account to a full sized account & trading .. baby step out of it with a small account of real money and work up from there. IMHO

[BrandonnKim]

I'm glad you mentioned demo accounts. I couldn't agree more. The best thing I did was open a live account. It really helped me guage how my emotions and personal psychology come into play when trading. While demos may be good for trying out a new system, it's a completely different "feel" when trading with a live account with real money.

Trading successfully with a demo account should not be used as an indication of how one will do with a live account.