Sunday, February 25, 2018

Forex: How to avoid Forex Scam

January 29, 2010 by  
Filed under Forex Scam

Although forex is a good place to make money, there are still a lot of people out there trying to cheat your money with some totally outrageous good deals. Like Bruce Lee in the drama ‘Legend of Bruce Lee’ said, “When you attack, also consider your defense”

So, when you make money, consider how to protect your money.

Here are some tips to spot a forex scam.

Too good to be True

Nobel-prize winning Chicago-school economist, Milton Friedman said “There is no such thing as a free lunch.

If things look too good to be true. Don’t make the decision then. I agree sometimes good fortune does by once in a while. But have a good look at it first!

If you just got a large sum of money, be extra careful. This is very common for retirees who got their retirement funds. Frauds and conman just need to know your age, and they can predict when is the time you got your retirement funds. That is the time when they will call you and give a ‘too good to be true’ deal.

Like a black hole, once your money goes out to them. Getting them back will be as good as gone.

Companies Promise You They Will Generate Huge Profits

Companies that guarantee you once you invest in their forex products, you will make huge profits. Profits usually so high that seems really ridiculous.

Do take note of their ‘sweet talking’ and boastful words. Here are some examples:

  • Our company can perform better than Berkshire Hathaway’s shares
  • In less than 2 hours, you are going to make back all your money you invested!

  • We guarantee you will make at least 30% to 40% every month!

Companies Guarantee Little or No Financial Risk

Forex, Stock, futures and options market are extremely volatile. As long as you are not train, not educated and inexperience, you are putting yourself in high risk.

Invest only what you can afford to lose, not on what you need to survive on.

However, fraud companies will uses sentences like these to tempt you:

  • The worst possible result that can happened is you lose only 5% of your $10,000

  • Even you make a lose, we will devise a strategy and make sure you recover all of them.

  • Your money is safe with us.

Do remember that con artists prey on greed.

Tips to avoid Fraud Forex Companies

Here are some ways to avoid Fx companies that are highly possible attempting to cheat your money.

  1. GoogleHere is a tip I learn from online shoppers. A pretty good one. Let’s take for example a company called “ Xxforex.com ”Copy the name and put in Google search bar and put a ‘ +scam ‘ in it. In this case in the Google search engine put ‘ Xxforex.com +scam ‘

    Read the result Google give you. If the company is long enough to do some marketing. The netizens will be already doing some product or company review on it. If it is a scam, people will screaming and complaining about it in community websites like forex forums or Twitter. Some might even report to the authority.

    So, do your research. If there is no results, then the company haven’t done any marketing yet. Or that company is new and have yet to get any customers. So wait for the result in the future.

  1. Ask for Company Background and Track RecordGet as much company information as possible. Do not rely only just oral information and promises from the company’s employees. They can just lie.With Written information, you can refer to experts and do some research and find out whether the company is good or scam.

    Try to get their client’s Track Record also. This may be difficult, and close to impossible as these information usually are very sensitive. However, if what they claim is true, and they still not willing to provide these performance record. You should be careful about them.

    However, they are not obligated to show you these performance track record. And even they do, these information can be easily altered.

  2. AskAsk who? Who else but experts of course! They, however, will not publicly tell everyone in a high viewerships website telling everyone that particular company is scam. They can be sued for that! You can ask me for starters. Just email me at manferd@whizforex.com and I try my very best to reply you. :)Instead, ask for opinions. Ask them how do they feel about that forex company. If they tell you it isn’t a good choice, but they didn’t give a very good details about it. Do be wary about that company.

There you have it! Not only should you learn how to make money. If you do not have the education, knowledge to protect them. Why make the money in the first place?

Cheers!

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Comments

2 Responses to “Forex: How to avoid Forex Scam”
  1. Raymond says:

    WATCH This.
    Great Video done by the Public on Forex SCAM.

  2. admin says:

    Hi Raymond,
    Thanks for sharing.
    Here is how I personally feel about Kishore.

    I know he what he doing isn’t a scam. He is merely selling his courses for profits. I see nothing wrong with that.

    Haha! That sure bring back memories, I remembered the first time I asked trading results from my mentor and trainer. Both of their face always turn black. But I think as a trust process, both of them must show to display trust. If trust isn’t there, I am sure working with them will filled with uncertainty.

    Back to the topic at Kishore. I don’t think he is a scamming. Think of this way, he is doing the same thing as any forex trading trainer does, but with more marketing.

    His personal trade results, this I agree, is personal. Take me for example, I felt very embarrass when I loss money and show my trade results to my mentor. I felt uncertainty when I make money and when I show my trade results to my mentor. When I review my trades, there are a lot of comments going around. It is very personal.

    Of course he can edit out a lot from his personal trade results and show you guys. But there again, is that what you want?

    His assistant is being honest with what he experiencing. For that I respect him. We are living in a society that everyone wants to show the better side of themselves and hide their ugly side. Will you still believe him that he makes a lot of money?

    Everyone here is trying to make money. There is nothing wrong in making money. However, the fact is 90% of the trader worldwide lose money. Not because they want to. But because trading is an extremely difficult job, there are a lot of skills, technical stuff, psychological issues to handle.

    Is Kishore a good trader? I don’t know. I never see his system, I never see him trade.
    I do agree that he is a good marketer, newspaper, internet marketing, asking people to market his product etc etc.

    Can he make his student rich? Seriously, no one can make anyone rich expect themselves. You saw how hong kong drama spoiled son inherited money but squander them away? Or lottery players win money and still become broke? It is the person that makes him rich not the sudden windfall.

    So in his defense, something really very hard to say. But also his creditability is another issue.

    Winning rate is another issue. Some trading system has 90% losing rate, but the 10% winnings are so freaking huge, they still can profit. But there again, that depends on the trader. Does that system suits him?

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